anvas mmunity SPRING 2019
canvas events
canvas JAINI SHAH & LYDIA DI CAPUA
ACKNOWLEDGMENT We would like to take this opportunity to thank out professors who guided us through this process. Mike and Lauren, your passion for design strategy continuously pushed us forward to explore new avenues of our business idea and opportunities within the retail industry. Your guidance and passion was instrumental in helping us develop our final concept.
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TABLE OF CONTENTS Introduction
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Challenge
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Research Question
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The Retail Economy
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Pop-Up Model
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Key Insights
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Concept Development
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Stakeholders
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Competitive Analysis
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Prototyping and Testing
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UX Report
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Final Concept
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Business Strategy
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Appendix
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INTRODUCTION We are two international girls who moved to New York City two years ago to attend Parsons School of Design. Eager to explore everything NYC has to offer, we ventured out to different neighborhoods to “get the feel� and started following accounts on Instagram that posted upcoming experiential events. We started noticing the many vacant storefronts around certain neighborhoods and the rise of pop-up stores. Our growing curiosity led us to research the retail landscape and uncover what was going on in NYC.
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OUR TEAM
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JAINI SHAH
LYDIA DI CAPUA
I’m always on the look out for brands that offer new trends. I shop online, however I do enjoy visiting stores that create a valuable and memorable customer experience for me.
I browse several online multi-brand shops daily for emerging brands and new trends. I often find myself placing orders just to see and feel the products in person.
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RETAIL VACANCIES
Certain swaths of Manhattan have 25 percent vacancies while five percent is considered normal. NYC now penalizes landlords with vacant retail spaces by charging them a fee. Several years ago, landlords in Manhattan were hesitant to offer short-term leases rather than the customary 10 year lease. However, landlords are now pursuing quick fixes to vacant storefronts offering competitive leases for two to five years and sometimes even offering leases for as short as a week or a few days.
11.3%
WEST VILLAGE
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20% SOHO
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RETAIL IS NOT DEAD, IT’S JUST SPREAD
Over the past few years, the news headlines predicted the retail apocalypse, alarming those in the industry to question the future of retail. Skepticism in the industry kept rising as large retail stores closed, online sales continued to increase and many declared “The Death of Retail.” However, recent changes in the industry prove that only boring retail is dead, not retail that creates inspiring spaces for shoppers to develop long-lasting, deeper connections with brands. canvas
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CHALLENGE
New York City’s retail landscape has changed drastically as vacant storefronts now occupy its most popular retail corridors. At the same time, brands find rent unaffordable and are hesitant to sign long-term leases.
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RESEARCH QUESTION
HOW MIGHT WE BRING VALUE TO BRANDS THROUGH THE CHANGING RETAIL LANDSCAPE?
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KEY QUESTIONS
How might we make rent more affordable for emerging brands? How does consumer behavior affect the retail industry? How might we create value from underutilized spaces? What is the correlation between vacant store fronts and short-term lease?
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THE RETAIL ECONOMY Problems don’t exist in isolation. We practiced mind mapping to set the stage to make sure we had covered every assumption and expectation.
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RETAIL LANDSCAPE DEPARTMENT STORES ADAPTING DIFFERENT ROUTES
INTRODUCES CONSUMERS TO THE BRAND
POP-UPS TEST THE MARKET WITH MINIMAL RISK, NOT LOCKED INTO RENT
SOCIAL MEDIA PURCHASES
POP-UPS PAY 30% PREMIUM ON RENT
MOBILE OBSSESSED IN-STORE APP NAVIGATION
RETAIL SPACES
TECHNOLOGY
EXPERIENCE PER SQUARE FOOT HIGH VACANCY FEE FOR LANDLORDS
RETAIL ECOS Y S TEM
PURPOSE DRIVEN BRANDS
STRIKING A BALANCE BETWEEN TIME AND EXPERIENCE
CONSUMER BEHAVIOR
ONLINE INSPIRATION
PROGESSIVE WEB APPS (PWA)
AI & MACHINE LEARNING
HOW MIGHT SHOWROOMS DRIVE SALES ONLINE?
HUMAN INTERACTION DEMANDING ZERO FRICTION
ADDING A HUMAN TOUCH IN THE SATURATED TECH WORLD
CHALLENGES AUTHENTICITY OF PRODUCTS
PEER TO PEER SHARING
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SPEED & EFFICIENCY
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FASTEST GROWING SEGMENTS IN RETAIL
TRADITIONAL RETAIL STORES
Omichanel approach: bridging the online and offline gap
Experiential Retail
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Pop-Up Stores
Showroom Expereinces
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FIELD OBSERVATIONS While conducting research, we ventured out to see what was happening around New York City and identified key retail trends.
CASPER Creating a showroom like experience for consumers by setting the environment
COACH Tapping into consumer culture - journey to self-discovery TARGET & MUSEUM OF ICE CREAM Different industries collaborating to create unique experiences.
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BRANDLESS Connecting with consumers to give them a Real Life experience of an e-commerce brand 16
Brick and mortar found a new role in the retail shopping ecosystem
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POP-UP MODEL
The modern day pop-up store serves as a tool to test, learn and develop new ideas. While some brands might use the pop-up model to test hypotheses about new products, others might use it as a tool to evaluate market segments, to better understand customer demographics and to gather data to develop actionable marketing strategies. The pop-up model has generated tremendous buzz over the past few years due to the concept of “massclusivity� and its innate nature to serve as a fleeting moment. Additionally, pop-ups give online brands a chance to better engage with customers on a personal level and collect data on consumer behavior. Online brands collect data through online sales; however, how their customers behave with and around their products are also valuable points of data.
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FACTORS INFLUENCING THE RISE OF POP-UP Increase of vacant storefronts Rise of short-term lease agreements Future of malls Revenue generation Brand Awareness Customer Engagement Experiential Marketing
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“When done properly, pop-up shops deliver long-lasting, long-term brand experiences, and they afford the opportunity to engage potential customers in a manner that leaves a lasting impression.” Ray Hartien, Director of Marketing, Retailnext
POP-UPS ARE VALUABLE BRAND ACTIVATION TOOLS
600 m MARKET WORTH IN 2016
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740 m
EXPECTED TO GROW IN 2020
POP-UPS VS TRADITIONAL RETAIL SPACE
80%
LESS EXPENSIVE THAN TRADITIONAL PHYSICAL RETAIL SPACE
POP-UP INDUSTRY SPENDING
7.7 B
SPENT ON POP-UP STORES IN THE U.S
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RETAIL AS AN EVENT
$45 BILLION* MARKET SIZE OF THE POP-UP INDUSTRY IN THE U.S. *retail as an event is projected to continue growing
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TRANSFORMING SHOPPING BEHAVIOR Gravitate towards experiences
and are transforming the shopping behaviors of previous generations
$1.4 Trillion projected annual spending
MILLENIALS
30% of total retail sales by 2020
Influenced by:
Social Media “Share/like” culture Experience vs Ownership
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These characteristics impact the way brands market and sell their products
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KEY INSIGHTS Based on our research, we uncovered several key insights about the retail economy that helped us further explore opportunities to bring value to brands in the changing retail landscape.
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INSIGHTS
Physical retailers need to offer something online-only retailers are missing out on.
“The customer experience is very very important for me. I’ll go back to the place because of the way somebody helped me, treated me or felt welcomed in the store” Anna Loh, Consumer
Brick and mortar can take advantage by giving people that offline experiential touch point by providing unique experiences. Consumers demand physicality and engagement with humans. It’s like the counter balance to technology where they feel the need to connect
45%
INCREASE IN CUSTOMERS
42%
INCREASE IN RETENTION RATE
Was seen by stores who offered an enhanced customer service and experiences
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INSIGHTS
Traditionally, the primary measure of retail performance has been sales per square foot. However, as stores become experience hubs as well as points of sale, retailers are thinking differently about the metrics they use to measure performance.
“Customer experience will overtake price and product as the key brand differentiator by the year 2020.” KPMG Global Retail Trend Report
It’s the experience economy where we have a new metric for a new era. Experience per sqaure foot will become an important metric for retailers.
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CONCEPT DEVELOPMENT After conducting research and uncovering insights, we found three key themes that stood out in the changing retail landscape with a clear area of opportunity.
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AREA OF OPPORTUNITY
RISE OF POP-UP STORES
VACANT SPACES IN MANHATTAN
BRIDGING THE GAP BETWEEN ONLINE AND OFFLINE PRESENCE FOR BRANDS
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WHO ARE WE
Canvas Events aims to provide value to online and emerging brands by giving them the opportunity to gain physical exposure in NYC by participating in curated fashion pop - up events that highlight seasonal trends through art and design.
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WHAT WE DO Host events in different shopping corridors of NYC
Offer lower pop-up cost for brands Create brand activations for online and emerging brands Craft unique customer experiences
Host like minded brands in a collaborative space
Collect consumer behavior data canvas
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WHAT SETS US APART
Dig deeper into data analytics by giving participating brands the chance to capture end-user metrics.
Assess authentic customer behavior data from face-to-face interactions
We create real life R&D opportunities
Generate meaningful results of What Sells Where? Uncover relationships between neighborhoods, customer types and brand offerings
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STAKEHOLDERS We identified and mapped a list of stakeholders that include members of many industries that surround the retail, real estate and event industry. We believe that these stakeholders are critical to the success of Canvas Events.
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STAKEHOLDER MAP
STAKEHOLDERS BRANDS
MARKETING
Primary User
Collaborations
Fashion Stylist
Emerging E-commerce International
REAL ESTATE
INDUSTRY EXPERTS
DESIGNERS
PR Agency Influencers
Real Estate Firms Brokers Landlords
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Trend Forecaster Fashion Curators
Buyers
Interior Designers Experience / UX
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COMPETITIVE ANALYSIS Using design research tools, we analyzed our competitors to better understand how Canvas Events can tap into the Retail Landscape.
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BENCHMARK ANALYSIS
COMPETITOR MATRIX
COMPETITVE LANDSCAPE
In identifying key brand attributes, we compared those of Canvas Events with those of its direct competitors to better understand the unique proposition of the opportunity.
In this competitive analysis map, we plotted our direct competitors in terms of single services vs, multiservice and ownership vs. online platform. We identified our unique values that sets us apart from out competitors.
Our competitive landscape includes a diverse group of companies, brands and current retail trends. We plotted our main competitors in each category representing indirect, direct and secondary competitors.
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BENCHMARK ANALYSIS
Naked Retail
Storefront
Dover Street
Appear Here
Pop-Up Mob
Parasol
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Exposure Collaborative Curated Experential Fashion Event Ability to test Shopper Centric Following Trends Brand Activation Acting as a bridge
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COMPETITIVE ANALYSIS Ownership
Single Service
Multi Service
AREA OF OPPORTUNITY
Online Platform canvas
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COMPETITIVE LANDSCAPE Rent the runway Revolve Department Stores
Current Real Estate Concept Stores
Sample Sales
Artist & Fleas Bonobos Shawmut Design & Construction Shopbop
Pop -up mob Naked Retail Storefront Parasol Projects
Stand alone pop-up stores
Appear Here Chelsea Market
StitchďŹ x
Dover Street Market
Trunk Shows Splacer
Net-a-porter
SECONDARY Farfetch
DIRECT INDIRECT
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PROTOTYPING & TESTING During the prototyping and testing phase, we prototyped concepts developed during ideation and tested them out with potential users to get their feedback. We iterated our prototypes based on user feedback to further develop and polish our concept.
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PROTOTYPE 1.0
PROTOTYPE 2.0
Our first prototype consisted of using wireframes of our website to engage and test out how our users responded to the general flow of the website. Although this prototype was helpful in identifying key description aspects for the business, we found that it was a usability test rather than a prototype to test out the concept of Canvas Events.
After iterating on our first prototype, we developed a second prototype to test out our concept with brands. After several iterations of our second prototype, we found that it was successful in communicating the concept of Canvas Events and it also raised several aspect of the business that we needed to consider.
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PROTOTYPE 1.0 [interactive video]
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PROTOTYPE 2.0 [concept book]
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UX REPORT Our UX Report is a detailed outline of our prototypes. It identifies our testing objectives, user feedback, insights and iterations.
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STATIC PROTOTYPE WEBSITE
WEBSITE SCREENS
TESTING OBJECTIVES We created these paper wireframes to test out how our users responded to the general flow of our website
FEEDBACK Hard to understand user flow by looking at the separate computer windows
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INSIGHTS Integrating user interaction into the prototype
ITERATIONS Develop a more interactive and clickable prototype
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INTERACTIVE PROTOTYPE WEBSITE TESTING OBJECTIVES We iterated on our previous static prototype to engage users through a clickable interaction version of the website.
SCREENS
FEEDBACK
INSIGHTS
The overall wesbite had a good user flow
This serves more as a usability test
What is the correlation between theme and brands?
Need to specify what types of themes and what kinds of brands.
ITERATIONS
This interactive prototype only serves as a usability test; it does not test out the concept of Canvas Events.
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Four tabs titled “be featured”
Consolidate and clarifly be featured titles
Where does explore lead me to?
Remove explore tab on event details
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MOODBOARDS
MOODBOARDS
TESTING OBJECTIVES In order to clarify the confusion around themes, we created these moodboards by scraping together images to represent the look and feel of a Spring/ Summer event.
FEEDBACK
INSIGHTS
Color palette works for spring season
Sets the mood for the look of the event
Images represent a fresh and bold theme
Not a complete understanding of the general concept of Canvas Events
ITERATIONS
Develope a concept book using the moodboards that enhance the understanding of Canvas Events
What is the concept of this event?
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BOOK 1.0 TESTING OBJECTIVES Test out the concept of Canvas Events by engaging brands through a concept book.
SCREENS
FEEDBACK What are seasonal themes?
We would love to gain physical presence
INSIGHTS
ITERATIONS
Online brands see value showcasing in a physical store
Concept was understood and well-received by emerging brands
What is the company organizing this called? Change wording to clarify users pain points
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The word ‘bazaar’ has a cheap connotation
Re-wording what certain things mean
Is the event yearly? Like any other bazaar.
Specifying the duration of the event
Included the company name and logo
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BOOK 1.2
SCREENS
FEEDBACK
What does the event look like?
INSIGHTS
Emerging brands find value in being part of a community of brands that serves as support
Great opportunity for International brands gain exposure to the US market, especially New York City’s market
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ITERATIONS
Find vacant retail space to host our first Spring 2020 event
Develope a floorplan to show brands the layout of the space
Create Canvas Community, a brand extension of Canvas Events.
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KEY TAKEAWAYS
+ Emerging brands find value in being part of a community of brands that serves as support + Brands participating in an event hosted by Canvas Events expect the event is well curated and that the other brands participating meet the same standards + Online brands can build a deeper connection with their customers by showcasing in a physical space
“Would expect such an event to be carefully curated in terms of brands they chose to invite as exhibitors” MARA MMA, Founder
+ Brands want to “test out” different physical location to get a better understanding of who their customers are and how they shop.
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“I’d like to be part of a brand community, and this is what I am understanding Canvas Events is aiming towards creating with their events” The Low Caps, Founder
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FINAL CONCEPT During our prototyping and testing phase, we received feedback and derived insights that influenced our final concept. Our final concept includes Canvas Events and introduces Canvas Community, an extension of the brand.
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canvas community
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Canvas community aims to create a community of like-minded brands to engage with industry experts and have the opportunity grow their businesses to their highest potential.
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canvas community
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Networking
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Business Resources: Business analytics plays a critical role in better understanding your brand’s true potential. At Canvas Community we will help you make sense of the data you collect and plan out next steps for you and your brand to take in the future? Buyers: Buyers open the doors for brands to showcase their collections at department stores and/or be featured on multi-brand online stores. Canvas will invite buyers to all events for brands to get exposure to online & offline stores.
Buyers
BRAND ACCESS
Business Resources
Networking: We will create many opportunities for our members to network with industry experts, as well as to engage with other brands to receive feedback and collaborate. Influencers: Influences have the ability to promote a brand by sharing content with their followers. Canvas will invite influencers to attend and speak at Canvas Events’ panels. Our community brands will get exposure to influencers who can help them promote, grow and improve their business.
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MVP The Canvas Guide invites brands to participate in our launch event, highlighting the trends for Spring / Summer 2020, showcasing the space and layout of the event. Additionally, it introduces Canvas Community, an extension of the Canvas brand.
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BUSINESS STRATEGY Our business strategy highlights our working plan to successfully roll out Canvas. We identified key parts of our business activities and costs structure to achieve our business goals and promote growth.
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BUSINESS MODEL CANVAS KEY PARTNERS Real-Estate ďŹ rms Landlords Brands Event Organizers Industry Experts Influencers PR Agencies
KEY ACTIVITIES Canvas Events + Identify seasonal trends and scout event location + Create pitch deck + Attract brands + Build out experience Canvas Community + Host networking opportunities for members at Canvas Events + Invite industry experts and influencers to attend and speak at Canvas Events + Facilitate data analytics
KEY RESOURCES Experience Designer Website POS System Salesforce (CRM)
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VALUE PROPOSITION
CUSTOMER RELATIONSHIP
Canvas Events Crafting curated seasonal fashion events for brands to + Showcase collection + Test out shopping corridors and target market + Receive brand activation + Collect consumer data + Collaborate with brands
Customer: Collecting consumer behavior data Collaborations
Canvas Community Creating a community of like-minded brands to + Engage w/ industry experts + Gain exposure to influencers and buyers + Enhance the data analytics process
End-user: Introducing emerging and online brands to physical retail
CUSTOMER SEGMENT Customer: Emerging brands Online brands End-users: Shoppers
CHANNELS Social media (Instagram, Social media influencers & FB ads) Email marketing Eventbrite to feature event Fashion magazines Time Out Nnew York
COST STRUCTURE
REVENUE STREAM
Variable Costs: Rent, Build out cost, Staff Fixed costs: Marketing Initial costs: POS System, Insurance, Website development
Canvas Events Template form: standard, superior and premium booth options Canvas Community Membership
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PRICING STRATEGY
canvas events Testing out different price points in the first year to find the optimal price point
STANDARD BOOTH
SUPERIOR BOOTH
PREMIUM BOOTH
$1100 - $1300
$1300 - $1500
$1500 - $1700
event duration: 7 days
event duration: 7 days
event duration: 7 days
canvas community MEMBERSHIP
$1800 / year canvas
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GO-TO-MARKET PLAN
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ACQUIRING CUSTOMERS
SPACE SCOUTING
MARKETING
Pitch book +Concept Sketch +Market analysis of event location +Mock up space/ Floor plan + Event Details +Marketing material
Create a database for Canvas Events, to assess what sells where and consumer behaviors in the near future.
Feature in Fashion magazines Email marketing Posters PR agencies Social media outreach
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STRATEGY PROJECTION ROADMAP Expand to other US cities
“Off-Fashion week� Canvas Events will host two major events for emerging brands to showcase during NYFW.
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Canvas Events will continue to expand operations around the NY area and major cities in the U.S., including Miami, Dallas, Chicago and LA.
Off- Fashion week Canvas Events
Canvas Events [large scale event]
Expand to major cities around the world Canvas Events will take operations overseas in partnership with appear[here] to major cities around the world.
Canvas Events [launch event]
2 small events
4 small events
Canvas Community
Canvas Community
[acquire 5 members]
[acquire 10 members]
YEAR 1
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3 small events
YEAR 2
Canvas, What Sells Where? After hosting about 15 event in two years, Canvas will be able to assist brands in finding the perfect location for them in a NYC shopping corridor that best reflects their target market and consumers type.
YEAR 3
YEAR 4
YEAR 5
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“Come see for yourself, why we believe, The Death of Retail is Overrated” Gary Friedman, Chairman & CEO of RH
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APPENDIX
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FINANCIALS
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FUNCTIONS AND FEATURES [prototype development]
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BIBLIOGRAPHY
BLOGS Hartjen, Ray. “The Rise of the Pop Up Shop (INFOGRAPHIC).” Retail Next , 9AD, 26 Sept. retailnext.net/en/blog/therise-of-the-pop-up-shop-infographic/. Schwab , Jason. “The Transformation of Experimental Retail.” Retail Spaces , 17 Jan. 2018, info.retailspacesevent. com/blog/the-transformation-of-experiential-retail. VIDEOS The Science of Shopping and Future of Retail: Devora Rogers at TEDxWakeForestU How China is Changing the Future of Shopping: Angela Wang TEDxBCG PODCASTS Ramberg , JJ. “Retail Gets Real - Retail Trends that will gain traction in 2019.” National Retail Federation, PWC , Episode 77, 20 Sept. 2018, nrf.com/blog/retail-trends-will-gain-traction-2019. Stewart, Kristina. “Retail Gets Real - Discovery and the Pinterest Shopper.” National Retail Federation, PWC , Episode 76, 17 Sept. 2018, nrf.com/blog/the-pin-discovery-and-the-pinterest-shopper MyDomaine. “Natasha Case, Coolhaus Co-Founder and CEO .” Second Life . Episode 6, 9 April. 2018 BOOKS Underhill, Paco. Why We Buy: the Science of Shopping. Simon & Schuster Paperbacks., 2009. Norman, Donald A. The Design of Everyday Things. Basic Books, 2013.
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ARTICLES Johnson, Steven. “Why There Are Pop-Ups for Everything Now.” The Atlantic, Atlantic Media Company, 8 Nov. 2017, www.theatlantic. com/business/archive/2017/11/popup-shop-corporate/545054/. Savitch-Lew, A. (2017, December 05). “Diagnosing NYC’s Vacant Storefront Problem.” https://citylimits.org/2017/12/05/diagnosing-nycsvacant-storefront-problem/ Cuozzo, S. (2018, April 10). “Why NYC’s empty retail space surplus isn’t fazing developers.” https://nypost.com/2018/04/09/why-nycs-empty-retail-space-surplus-isnt-fazing-developers/ Dennis, Steven. “The Future Of Retail Will Not Be Evenly Distributed.” Forbes, Forbes Magazine, 5 May 2017, www.forbes.com/sites/ stevendennis/2017/05/03/apocalypse-no-but-retails-future-will-be-far-from-evenly-distributed/#7812e34f6f43. Abad, Mario. “Why The Old Way Of Doing Retail Is Collapsing, According To Adam Pritzker.” Forbes, Forbes Magazine, 1 Aug. 2018, www.forbes.com/sites/marioabad/2018/08/01/adam-pritzker-explains-why-the-old-way-of-doing-retail-is-collapsing/#3d91131a773e. Helmore, Edward. “New York’s Vanishing Shops and Storefronts: ‘It’s Not Amazon, It’s Rent’.” The Guardian, Guardian News and Media, 24 Dec. 2017, www.theguardian.com/business/2017/dec/24/new-york-retail-shops-amazon-rent. Liffreing, Ilyse, et al. “‘A Resurgence of Physical Retail’: Retailers Report Upticks in Store Sales.” Digiday, 24 Aug. 2018, digiday.com/ retail/resurgence-physical-retail-retailers-report-upticks-store-sales/. “‘Rethinking Retail: From Micro-Moments to Mega-Experiences’ – Frank Grillo.” The Marketing Journal, 22 June 2017, www. marketingjournal.org/rethinking-retail-from-micro-moments-to-mega-experiences-frank-grillo/. “Study: Consumers Still like Shopping in Stores - When the Experience Is Right.” Chain Store Age, 6 Oct. 2017, www.chainstoreage.com/ technology/study-consumers-still-shopping-stores-when-experience-right/. Staff, Marketplace. “Retailers Rethink Physical Stores as Online Shopping Grows.” Marketplace, Marketplace, www.marketplace. org/2017/12/19/business/physical-stores-reformat-retails-future.
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