N E T - A - P O RT E R
Holiday in London Pop-Up Shop
Sophie Litow, Katie Schiewe, Isabella Berkoff
Proffessor Levy | FASM 410
Table of Contents
EXECUTVE SUMMARY Company Overview About the Company Brand Identitiy Matrix Price Accesibility Matrix Current Distribution Communication and Promotional Activities Direct Competitors Indirect Competitors SWOT Analysis MARKEY ANALYSIS Luxury Ecommerce business Pestle TARGET CONSUMER Demographics Psychographics Lincoln Park Customer STORE INFO Locations Area Attractions Logistics& Infastructure Human Resources W
Executive Summary
Net-A-Porter is a luxury apparel business conducted solely online. The brand began in London and has the greatest presence in Europe and a large following in the United States. Due to the brand’s absence of a brick and mortar business as well as the opportunity to increase growth in the highly profitable United States market, we’ve created a proposal for a Net-A-Porter pop-up shop in Chicago. The luxury fashion business is growing rapidly in Chicago, and is a market that has many potential Net-A-Porter customers, yet is untapped. To bring the brand to the Chicago luxury apparel market in an interesting way, this Net-A-Porter pop-up shop, Holiday in London, will open during the holiday season and aims to bring a winter holiday themed shop from a British point of view. The shop will showcase british treats and drinks as well as other quintessential British items. This theme brings a new, fun, and informative experience to consumers as well as establishing their British brand heritage for Net-A-Porter.
Company Overview
Net-A-Porter was the first fashion tech startup to conduct and build a luxury business online. Being at the forefront of technology and ecommerce has put the business on the map and made it the success it is today. The business thrives by continuing to be at the cutting edge of innovation as well as offering a refined assortment of trend driven goods and a wide range of luxury brands. The business began in 2000, and now, 17 years later, it has an audience of over 6 million throughout their multiple platforms. The platforms include The Net Set (social shopping app), The Edit (digital magazine), Porter Magazine, and net-a-porter.com. Net-A-Porter ships to over 170 countries and offers next day or same day shipping to many of their customers. The brands packaging is extremely luxurious with hassle free returns and exchanges. The company is also known for their exceptional customer service with a customer care team available 24/7 in multiple languages. In 2015, Net-A-Porter joined with Yoox Group. The partnership is now called YNAP Corporation.
About The Company EST. 2000
Current Presiden: Allison Loehnis
London, United Kingdom
Values The Multi-brand business line includes three online, including yoox. com, thecorner.com and shoescribe. com.
- innovation - luxury goods - great service
They strive to be the best, Lead not follow, exceed expectations, smart and stylish, and service starts with yourself.
Product Assortment Mission Statement To be the leading online luxury at the forefront of fashion technology.
Net-a-Porter’s current president is Allison Loehnis. Allison was born and raised in NYC and before Net-a-Porter worked in advertising at Satchi and Satchi, LVMH, and Disney. With a diverse resume, she has been guiding Net-a-Porter through the Yoox merger and growing the company.
Online retailing of women’s designer branded, ready-to-wear fashion, shoes and accessories, supported by a weekly online fashion magazine designed and written by the group.
History: Natalie Massanet Net-a-porter was founded in 2000 by Natalie Massanet, who was a former fashion journalist. She saw an opening in the market where users could “click” to buy a products they saw from photo shoots. With the help of her husband and raising the start up funds, Natalie launched her company out of her London flat. In 2010, Natalie sold stake in Net-a-Porter to Richemont for an estimated £50 million. Since then the company has expanded into mens clothing with Mr. Porter, Beauty, and a print magazine, The edit. Natalie is still involved with the company and sits as the chair woman. In 2015, Net-a-Porter was sold by Richemont and merged with Italian retailer, Yoox. Together, the companies have continued to grow.
Brand Identity Matrix Brand as a Person
Brand as a Product
Sophisticated Creative Cool
Brand as a Symbol
Central location for online luxury brands
Brand as an Organization Luxurious Refined Innovative Global
Price Accessibility Matrix
Current Distribution Net-A-Porter currently conducts business exclusively
High Accessibility
online. The brand ships to over 170 countries. They offer same day delivery to London, Manhattan, and Hong Kong. They offer next-day delivery to the United Kingdom, United States, Germany, France, Australia, and Singapore. They have a distribution center in both London and New York. High Price
Low Price
Low Accessibility
Communication & Promotional Activities Net-A-Porter utilizes many different platforms to market and communicate to their customers. The company uses social media platforms Instagram, Facebook, Twitter, YouTube, Pinterest, Google+, Tumblr, and Weibo. They have over 6 million followers across all social platforms including 2.6 million on Instagram and 1.5 million on Facebook. The company also markets to their customers through The Edit, their digital weekly magazine, and Porter, their monthly print magazine. Their print publication is also printed 4 different languages: English, French, German, and Mandarin. The Edit leaves 8 million editorial page impressions each month. Net-A-Porter is also known for their shoppable app, The Net Set, another way for them to interact with their customers through the virtual fashion community the app formed. Lastly, YouTube is a platform they use to introduce Net-A-Porter staff to their audience as they share their fashion tips and expertise. Net-A-Porter does almost all of their marketing in house on their own platforms due to the amount and variety of platforms the brand has.
Direct Competitors eDrop-Off is a designer consignment store to buy and sell new and gently used authentic designer clothing, handbags, shoes, jewelry and accessories. The top brands sold are Chanel, Hermes, Gucci, Louis Vuitton, Prada, and Valentino. Their physical store is located on 2117 N. Halsted St in Lincoln Park, not too far from our Pop-Up shop location. Their competitive advantage is a lower price point for luxury goods, however, their disadvantage is having last season’s product as well as the product being second hand.
Indirect Competitors
Fortunate Discoveries is a large art gallery space located on Armitage avenue, the same street as our Pop-Up shop. Fortunate Discoveries holds many micro galleries which includes an array of fine artisans, designers & specialty retailers. It’s unique to the area and a place our customer might want to go to shop during the holiday season when our Pop-Up shop is open. The space also holds many events including a holiday event.
Luxury Garage Sale is a luxury consignment store to buy and sell new and gently used authentic designer clothing, handbags, shoes, jewelry and accessories. They sell heritage brands such as Hermes and Chanel as well as contemporary designers. The store is located in Chicago in Old Town and Gold Coast. Their competitive advantage is a lower price point for luxury goods, however, their disadvantage is having last season’s product as well as the product being second hand.
Gilt Groupe is online luxury flash sales website offering designer merchandise up to 70% off for women, men, kids and home as well as exclusive local services and experiences and luxury travel. Gilt is exclusive and to shop these sales, one must become a member of the Gilt website. Their competitive advantage is that they offer new on trend products at lower price point.
Steppenwolf Theater is a famous performing arts theater located in Lincoln Park on Halsted St. The theater has an ensemble of 47 members including famous upcoming actors, directors and playwrights. The theater is constantly putting on new shows making it a destination for many to frequent.
Internal
SWOT Analysis Strengths
Weaknesses
Seamless Omni Channel
Higher prices compared to competitors Inability to try merchandise before you buy Lack of Personalization
Innovation Customer Service Strong Brand Community Merchandise
External
Threats Shipping Costs Off-Chain Retailers
Opportunities Brick and Mortar Other Markets Future Technology Personalized shopping across omni channels Customer Reward Programs
Market Analysis
Luxury Ecommerce Business Over the next 5 years the luxury ecommerce business is expected to exceed
into the mid billions. The luxury ecommerce industry has been the largest growth section in ecommerce websites. Now that Consumers are armed with technology at every point in their life and have access to online website, it is easy to see why luxury ecommerce is growing. Recently, Chicago’s fashion scene has been emerging as a top fashion destination in the U.S. With the rise in fashion businesses opening up and starting in Chicago, we see this market as a great opportunity to grow the Net-a- Porter business to new target customers. The best location in Chicago we foresee the Net-a-Porter customer living is Lincoln Park. Lincoln Park residents are young high income working professionals who spend most of their money on themselves. Fashion and keeping up appearances is also important to them and their inner circle. They are innovators; adapting to new technologies and trends but keeping their own unique identities. The area has other supporting businesses in fashion, food, culture, etc. that brings customers to the area. It is also a destination that tourist frequent to get a taste of local culture.
PESTLE Analysis P Political environment is mostly stable. Chicago’s main issues deal with funding cuts for the public school systems, rising taxes, and corrupt police forces. However, these political problems rarely affect the Lincoln Park area. Riots are few and far between but are possible.
S These people are social city dwellers who have a large disposable income to spend. They spend a majority of their disposable income on themselves including food, clothing, and entertainment. Mostly one or two person households without children. Majority of the population is age 21-34 (35%) or 35-44 (17%). Most are unmarried. Population by age: 55% of Lincoln Park residents age 25-54, median age of 30 81.4% of LP residents have at least a Bachelor’s, 46% of millennials 81.4% college educated
L Lincoln Park Chamber of Commerce is the place for business looking to locate to LP. LPCC advocates on behalf of businesses in LP at the state and local level. LPCC regulates transportation, taxes, zoning and development, or business regulation.
E 30% of households have an income of $150,000+. 17% of households make $150,000-$100,000. Major economic engines: DePaul University, Presence Saint Joseph Hospital, museums, zoos, theaters, restaurants, and hospitality businesses.
T Due to the young demographic, Lincoln Park and it’s businesses are technologically advanced. Business utilize features like apple pay and ipads to make check out processes easy and efficient. The demographic living in the area also values new technology. Incorporating advance tech aspects in our pop-up shop will help us reach customers in the area.
E Lincoln Park Conservancy- donations communitypark planning and renovations, volunteer and educational programs, maintenance of restored park sites- as Chicago’s largest park, they offer a variety of projects that individuals and businesses can support to ensure the health, safety and beauty of its conservatories, parks, gardens, nature sanctuaries and monuments
Target Consumer
Target Consumer Overview Population by Age: 55% aged by 25-54 Median Age: 30 46% are Millennials 81.4% of Lincoln Park residents have their Bachelors Degree
Major Economic Engines Depaul University Zoos Museums Theaters Restauraunts Hotels
As the proposed pop up shop is going to take place in Lincoln Park, Chicago, IL, the consumer analysis includes the psychographics and demographics of this particular area. Chicago, as a major US city, proudly hosts visitors from all over the world. Chicago’s fashion scene is constantly growing, proving to be a hub for its stylish residents. Lincoln Park is one of Chicago’s premier shopping neighborhoods, featuring shopping opportunities that are recognized by blogger and fashion critics. LP is largely comprised of college students and young professionals that would fit the profile for a Net-a-Porter customer. With various cultures, lifestyles and nearby attractions this unique city offers a major opportunity for expansion and growth in fashion.
Population by Race and Ethnicity
Population by Age
The INFLUENCERS
The DEMOGRAPHICS
Target Consumer
Friends and family Celebrities Social Media icons, bloggers, fashion critics Word of mouth- wants second opinions Researches product carefully before making purchases
meet VERONICA Age: 33 Relationship Status: Married Location: London, UK Education: MBA in Marketing London Business School Occupation: Marketing Manager Income: 170,000 pounds Hobbies: Shops online, goes out for drinks on the weekends, travels, cooking, hosting events
meet ANNIKA Age: 22 Relationship Status: Single Location: Chicago, IL Education:BFA in Fashion Design School of the Art Institute of Chicago Occupation: Student, internship Income: Parents support for college Hobbies: Travel, hiking, social media, going out
Active, fast-paced lifestyle Interests in sustainability, corporate responsibility Preference to spend money on experiences Enjoys going out Quality not quanitity Career driven Quick trendsetters Progressive beliefs Very tech-savvy- 6m women read & shop each month Very connected via social media
VALS Profile The Net a Porter consumers are Innovators. They are world traveled, future oriented, seek information, and make the highest amount of financial transactions.
The SHOPPING BEHAVIORS
The PSYCHOGRAPHICS
Primarily urban market
Highly engaged audience for digital experiences 62% of customer’s clothes purchased online 52% shopped on tablets 48% shopped on smartphones Confident enough to experiment Skeptical about advertising High spenders
Store Location, Design, and Product
Location: Lincoln Park Lincoln Park is one of Chicago’s premier shopping neighborhoods- features shopping opportunities for furniture, clothes and gifts from national brands to independent boutiques. Recognized by hotel concierges, bloggers and fashion experts for being home of a stylish and concentrated retail scene. Diversey intersection considered one of the most trafficked by pedestrians in Chicago, close to beautiful parks and lakefront events.
Area Attractions Located North of Chicago’s downtown area, Lincoln Park is a more intimate setting with a laid back feeling. Lincoln Park is home to Chicago’s famous Lincoln Park Zoo. Foodies also flock to Lincoln Park for the new and hottest restaurants, such as Grant Achatz’s Alinea. The area also has young bars, world-class theaters, cultural institutions, and lakefront activities. Overall, there is a lot to eat, do, and see in Lincoln Park.
Logistics and Infrastructure Chicago’s CTA runs throughout Lincoln Park, making the area easy to navigate. The red and brown train line both run through the heart of Lincoln Park. There are multiple busses that frequent Lincoln Park. Traffic is moderate and generally manageable because of neighborhood streets. Parking is not the easiest to come by and taking public transportation is encouraged.
Human Resources Store Manager The store manager’s responsibility is to make sure the operation of the shop is running smoothly. He or she is in charge of managing the inventory and restocking if needed (clothing, coffee, food), managing the employees regarding scheduling, wages, and performance, as well as checking in with upper management to relay information and updates on pop-up shop. Salary: $6,250
Assistant Store Manager The assistant store manager takes on the store manager’s responsibilities when the store manager isn’t working. The assistant store manager also trains the staff and tends to the staff’s questions or concerns. They also deal with customer issues if it cannot be handled by the sales associates. Salary: $5,000
Marketing Manager The marketer’s responsibility is to manage all marketing initiatives in regards to the pop-up shop. This includes in store promotion and outside advertising. Specifically, creating social media content and posting about it to appropriate social platforms, commenting and interacting with customers online who are talking/ posting about the pop-up shop, creating flyers about pop-up shop to place around the area, create an advertisement about the shop in the local newspaper, as well as oversee visual communication throughout the store such as window displays. Salary: $5,500
Retail Sales Associates Sales associates work directly with customers to sell product. We will have 2 sales associates staffed at a time and 5 overall hires. It is important they have great customer service skills as well as extensive knowledge of the brand and product. In addition to working with customers and working the cash register for transactions, they are responsible for keeping the merchandise folded, neat, and fixtures and counters clean. Wage: $10 per hour
Coffee Baristias Coffee Baristas manage the coffee counter in the Pop-Up shop. They are in charge of providing service to customers at the coffee counter and creating all of the beverages. They are also responsible for keeping their station clean and presentable. They also need to let the store manager know when they are running low on goods and stock needs to be reordered. Wage: $10 per hour 1 staffed at a time 3 overall hires
The PROMOTIONAL PLAN
Promotional Plan
Prelaunch In preparation for our launch, we will promote the event through various social media and digital platforms, including: facebook, twitter, instagram and the Net-a-Porter website. We will inform the public about the opening of our pop up shop with sneak peaks to get them excited for the event. We will plan an exclusive event for opening night, serving traditional London holiday comfort foods to celebrate Net-a-Porter’s British heritage. Invitations will be sent to local and national fashion bloggers and critics, as we want them to write good reviews about the shop.
Promotional & Communication Plan NET-A-PORTER CHICAGO POP-UP
Social Media Facebook (Post 3x Weekly) Instagram (1x a day) Youtube (1 promo video) Twitter (4x tweets weekly)
Launch During the launch, we will be hosting a festive winter holiday dinner in the evening featuring British comfort foods and cocktails. The event will be held at the location of the pop up shop on Armitage Avenue in Lincoln Park, Chicago, IL. The first night will be open to celebrities, local businesses and fashion critics to give them an exclusive first look at the shop. We will hand out promotional goodie bags including beauty and perfume samples and hot cocoa kits.
Print Advertising Chicago Tribune Michigain Ave Magazine Porter Magazine Bloggers Helen Burken
Postlaunch
Jena Gambaccini ChiCityFashion
Net-a-Porter will reach out to attendees and customers with customized thank you notes and an attached survey to voice their experiences with the pop up shop. This research will help determine if Chicago is a good locaation for a permanent Net-a-Porter.
Influencers Giuliana Rancic Sophia Bush
Pre-Launch
Launch
Post Launch
November
November
December
Holiday in London Net-a-Porter Pop Up Holiday in London by Net-A-Porter, aims to bring London’s holiday style and traditions to Chicago. The shop uses Net-A-Porter’s black and white color scheme as well as featuring dark winter greenery. The shop includes an espresso & tea bar offering popular gourmet british drinks free of charge to customers. British treats will also be offered to customers free of charge on the long center table in the shop. The products in the shop will be great for winter holiday gifts including an array of coats, handbags, and shoes. Transactions in the shop will take place with an ipad tablet and the Square payment method. Ipads will also be used to order product online for customers that aren’t in store or out of stock, shows customers the Net-A-Porter shopping app, and show customers The Edit publication. Porter magazine will also be available in print for the customers to read in the shop. This theme brings a new, fun, and informative experience to consumers as well as establishing Net-A-Porter’s british brand heritage. The shop will be open during the holiday season from November 17th - December 24th, 2017.
Packaging
Operational Plan
Unit Breakdown PRODUCT
Operational Plan Furniture, Fixtures, & Displays Technology
$20,000 $5,000
Rent & Utilities
$33,000
Labor
$27,085
Espresso & Tear Bar
$18,000
Food Total
$8,000 $111,085
NAME
PRICE
UNITS PRODUCT
NAME
Sales Forecast
Total Revenue for 37 Days:
$252,810
Total COG for 37 Days:
$101,124
Profit & Loss
Works Cited Sponsored. “The Net-a-Porter Group: The Original Fashion Tech Disruptor.” The Business of Fashion. N.p., 12 May 2014. Web. 07 Mar. 2017.
Profit & Losst Statement Promotional Cost
$25,000
Operational Cost
$111,085
Amed, Imran. “The Secret Deal to Merge Net-a-Porter with Yoox.” The Business of Fashion. N.p., 19 Jan. 2016. Web. 07 Mar. 2017.
Total Revenue
$252,810
Claritas MyBestSegments. N.p., n.d. Web. 07 Mar. 2017.
Total COG
$101,124
“Shopping.” Lincoln Park Chamber of Commerce. N.p., n.d. Web. 07 Mar. 2017.
Profit
$15,601
“Lincoln Park, Chicago – Like A Local.” TravelMag. N.p., 18 Apr. 2016. Web. 07 Mar. 2017. Amed, Imran. “The Secret Deal to Merge Net-a-Porter with Yoox.” The Business of Fashion. N.p., 19 Jan. 2016. Web. 07 Mar. 2017 “Media-Mix.” Media Convergence – Approaches and Experiences (n.d.): n. pag. Net-aPorter. Web. 28 Feb. 2017.
Works Cited All images sourced from Pinterest and Net-a-Porter.com
Thank You! We would like to thank our Proffessor Donald Levy.