our
the
m
ission is to consistently deliver trend right designs to our customers To further build our business, we will leverage our tremendous brand equity, dominant position in the fashion-forward footwear, and industry-leading design team and will work to ensure that Steven Madden Ltd. emerges as a global lifestyle branded company.
v
ision of the company is to give young fashion forward women a unique way to express their individuality through style resulted in millions of customers worldwide and propelled his designs to the forefront of the fashion industry
T
he company was founded by Steve Madden in 1990 and is headquartered in Long Island City, NY. Madden started the company with 1,000$ in his bank account. The store began with his first shoe design “The Marylin� . The large demand of the design resulted into mas awareness of the designer.
who are we Steve Madden is a casual footwear company for woman, men and children. It also carries handbags and accesories. This Global Brand, has had an inmmerse growth over the past 20 years with 4 ecommerce sites and 121 retail stores in the United States and with a prescence in 55 countries .
who is our target market Steve madden Targets women individuals in the 16-35 years -oldrange,(generation Y). Our average ratail price points range from shoes (USD$ 60- 100) to boots (USD$ 90-1960) . Our female customer is tipically interested in contemporart art, music and fashion/educated. She has a outgoign personality, she tends to look hip and trendy
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OUR COMPANY IN Currently Steve Madden has 6 stores all around HK. GRI Group is the brand distributor. Through this company Steve Madden offers online shooping at the same price range as in the retail stores, however the ecommerce site does offer online promotions and a shipping rate of HKD$30 / free for others over HKD$100
hk
90% 90%
womens
10%
Mens
10%
boots sneakers slippers sandals
evening shoes clogs loafers
& children
accessories handbags, clutches, shoulder bags eyewear hats, belts, scarves jewlery
The Steve Madden brand represents a lifestyle. It is about embracing fashion while still maintaining that funky independence that first defined the brand 20 years ago. With his product offering now including other accessories such as watches, jewelry, handbags, belts, sunwear, cold weather, outerwear and hosiery, Steve Madden is always looking towards the future.
THE SLIP-ON WEDGE SNEAKERS SUPERGAS SPORTY SANDALS high top-lace up low top- lace up
COMPETITORS
THE BRAND Millie’s is a footwear company that carries a variety of chic and modern footwear styles for the young fashion lovers. Full range of trendy yet easy to carry styles is specially selected to fit the dynamic requirementof modern lifestyle.
history Established in Hong Kong , Macau and China Millie’s x HOCC Collaboration Project in HK. Open 10 stores all over HK 2 in Macau and 55 in China
Millie’s x summer Collaboration Project in New York City
sALES & PROMOTIONS
Millie’s Fashion Show in Beijing. More than 111 store in Asia
-IN STORE promotions-Buy 2 pairs of shoes and get 10% off -VIP PREVIEW-VIp’s get to preview new collection and get up to 30% off on selected items. -VIP PRESALE-Up to 50% off. Extra 10% off on 2 items or above. -MEMBER DISCOUNTS-1 item: 15% off 2 items: 20% off For a limited time only -FINAL SALES-Up to 60% off on last season items.
THE customer Millie’s women are in their 17s to 20s. She is a young lady that is always up to date with the latest trends on and off the runway. She watches fashion shows with a keen eye and spots the key colours or silhouettes of the season. She is an avid reader of fashion magazines to keep up to date with the latest news in the industry. Millie’s women are willing to pay a higher price for these straight off the runway styles and take great pride in their footwear.
Merchandise analysis Silhouette Slip on Superga Loafers Platform Sporty sandals
Fabric Rubber Leather Synthetic
Color Pink Black White Blue Metallic Red Snake Leopard
THE BRAND
STACCATO is an Asia based fashion footwear brand which encompasses a confident sense of style. “ STACCATO ” is a form of musical articulation. Jumping notes the brand is symbolized as a contemporary lady who walks confidently and comfortably and reflects an attitude of young and stylish. The brand brings the exquisite shoes from runway to real way which expresses the cosmopolitan working ladies with their unique style every day.
history Established in Hong Kong , Macau and China “Best Outdoor Ad” Award from HK4As 500 retail stores open in China
STACCATO x Hilary Tsui Collaboration Project.And X Fiona Sit Collaboration
sALES & PROMOTIONS
STACCATO X Ground Zero Collaboration Project.
-IN STORE promotions-Buy 2 pairs of shoes and get 10% off -Privilege Card-To get a privilege card: Spend $1,800 or more on a single purchase Privilege Card: Get 10% off all regular priced items .Extra 5% off on discount items
-VIP PREview-Up to 30% off. FREE Trendy Leather Pouch with purchase of HK$1,800 (HK$1,500 for VIP)
-Holiday Sale Up to 50% off on selected items -FINAL SALES-Up to 60% off on last season items.
THE customer The Staccato customer is an embodiment of playful sophistication at
ages 25 – late 30s. She is a working lady; a business woman who exudes class and confidence. At the same time, she is spirited and whimsical, who enjoys a bit of flare in her footwear. Classic silhouettes like high top sneakers could stand out with a couple of metal studs and comfy loafers dressed in fun prints. The Staccato lady slips on the business heels for the day, and kicks back in sneakers at night. She has the money to spend and is willing to pay a bit extra for the quality that Staccato provides.
Merchandise analysis Silhouette Fabric Slip on Rubber High top Leather Nylon
Color Black Blue Red Metallic pink
THE BRAND
ALDO is a private Canadian corporation that owns and operates a worldwide chain of shoe and accessory stores. ALDO is a destination for on-trend fashion footwear and accessories at accessible prices. Positive, authentic, and bursting with personality. By 2013, there were over 1,350 ALDO stores in 80 countries,
history ALDO Shoes is established as a footwear concession inside a popular Montreal based clothing retailer. ALDO initiates its retail entry into the U.S. market. The first ALDO U.S. store opens near Boston ALDO expands to Asia.Opening its doors in Singapore. In 2009 opens in HK
sALES & PROMOTIONS
With over 1,000 ALDO stores operating in 65 countries and more than 160 Accessories stores in 19 countries
-In Store: Up to 50%-Selected past season items are up to 50% off -CNY Sale-During this Chinese New Year holiday, discounts are offered for selected ite -Mid Season Sale -Up to 30% off -Fall winter sales Limited time offer – for 3 days only. Up to 20% off -FINAL SALES-Up to 50% off on last season items.
THE customer Aldo customers range from college students to the young working woman from ages 18 to their 20s. Aldo women are youthful and trendy, always looking for new silhouettes to buy. However, these customers have a safe side to them as well. Not one for overly bright pieces, they opt for more classic colours such as black, white and pastels. They might not have a big budget for footwear, but they know that there would always be something at Aldo that would not only fit their price range, but fit their style as well.
Merchandise analysis Silhouette Slip on Low top High top Wedge Superga
Color Black Beige Grey Light blue Light pink
-GLOBAL RECOGNITION & qUALITY -STYLE & PRICE
To identify the brand with the highest global recognition, we judged this by how many countries the brands are operating in. According to our research, Aldo is located in the highest amount of countries followed by Steve Madden, Staccato and finally, Millie’s. In terms of quality, we based it on the times we went to the stores and tried on the products. We felt that Staccato had the highest quality with soft leather in their shoes. On the other hand, we felt that Aldo focused on the designs of their shoes more so than the quality due to their inexpensive prices.
After going to all of these stores, we were able to identify which was more expensive than the others. We identified Millie’s as the brand with the most expensive products, followed by Staccato, Steve Madden and finally Aldo. As for trendy versus classic, we judged this by the overall aesthetic of the products each brand offered. We felt that Millie’s products were trendier as they offered a variety of unique silhouettes. While Steve Madden did not have a very unique selection of silhouettes, their wide variety of on trend prints and colours helped push them above the other brands. Aldo compared to Staccato was more classic as they kept their colours and silhouettes safe with a more basic selection available.
1. the fly girl 2.the african mix 3.the mod look
women’s sneakers FW/2014 A STORE- CENTRAL B STORE- SHATIN
To find out the sales in Hong Kong, we first looked at the international sales from years 2010 to 2012. However, international sales figures were not available for 2013. After looking at a number of articles online, we found out that international sales accounted for 8.2 % of Steve Madden’s total sales in 2013. With that, we managed to calculate the total international sales for 2013. After which, we proceeded to the official Steve Madden website and found that there were a total of 144 Steve Madden international stores (ie: stores not located in America). From there, we divided the total international sales by (total no. of stores here) and multiplied that number by 6 as there are currently 6 stores in Hong Kong. Thus, the figure we got represented the total net sales of Hong Kong in 2013/ 2012 and 2011.
For the stock to sales ratio, the months January and December had the lowest stock to sales ration while September, October and November had the highest. During January and December, these 2 months are host to major holidays such as Chinese New Year and Christmas. During these months, there are likely to be more sales as people prepare for the holidays. Whereas in September, October and November, there aren’t any major holidays occurring during those months. Thus, they would have a higher stock to sales ratio compared to January and December. No doubt there aren’t any major holidays during August as well, there would still be a number of people buying for back to school items.
coms:
After finding the net sales in Hong Kong, we calculated the percentage of it in relation to the total net sales as a whole. Taking that percentage, we applied that to the other results to find the cost of merchandise sold in Hong Kong.
December and January yield the highest markdowns as these are the major holiday months with Christmas and Chinese New Year. During August, there would be a number of sales that not only promote back to school items, but to ensure that their summer stock is cleared to make way for the store’s fall and winter collection.
Justification The Steve Madden store in central is located in one of the biggest shopping areas in Hong Kong. The higher foot traffic from both the local and tourist communityhelps to justify the higher sales from the central location.
THE customer
Name: Carman Lo Age: 28 Location: Central, Hong Kong Occupation: Fashion Reporter Carman has an eye for fashion and loves to incorporate the latest trends into her outfit. She is not afraid of mixing prints and is always looking for something unique and new. As a fashion reporter, she is constantly on the go, and thus, purchases pieces that suit her fast paced lifestyle. She tends to look towards quality, comfort and unique designs in her footwear and is willing to spend on the perfect pair.
AREA INFO
- Located on the north shore of Hong Kong Island - Central business district of Hong Kong - Has served as the centre of trade and financial activities from the earliest days of the British colonial era - Well known for its shopping district - Population of 251,519 as of 2011
Justification Despite being near mainland China, we found that most of the mainlandersflocked to areas like Central and Tsim Sha Tsui instead due to the popularity of these shopping districts and the wider variety of brands to buy from. Furthermore, we also found that there were direct buses to central offered in that area, and thus, directs the flow of traffic to the central store instead. Therefore, the net sales for the Sha tin store would be lower than that of Central’s store.
THE customer Name: Momo Age: 32 Location: ShaTin Occupation: Editor
Momo is no stranger to the world of fashion. She keeps herself up to date with the latest news and likes to look at various fashion sites to keep herself inspired. She likes to take the latest trends and incorporate them into her own style, making her outfits a reflection of her own personality. Bright, fun and youthful, she takes vibrant colours and manages to style it in a way that only she would be able to pull off. At the same time, this editor likes to be classy and sophisticated, with frequent trips to cafes and bookstores for leisure.
AREA INFO
- Sha tin is located in a valley, on both sides of the Shing Mun River, running from the southwest to the northeast. - Built in 1574 - A former agricultural farmland
- Economy and living standards have greatly improved since the 1970s
-silhouette -size -color/print -price
assorment by silhouette
Steve Madden sales associate mentioned that the slip on silhouette was the most popular shoe style in the entire store. Additionally, according to a survey that we had done outside the Steve Madden store in central, we found out that most of the customers interviewed preferred the wedge sneaker silhouette. Therefore, for the store’s buy, we decided to increase the percentage of wedges while still keeping the slip ons as the highest buy. Following which, we also decided to include two new silhouettes to Steve Madden’s sneaker department: Sporty sandals and Supergas. Sporty sandals would have the same buy as wedges as we feel that the silhouette is on trend and demand now and would do well in the stores. On the other hand, we would have a smaller buy for the supergas as we would first want to test the market on this new silhouette before buying a big order.
assorment by price
Pricings for our products would remain the same as it had been for the previous seasons. The least expensive item would be the sporty sandals for $690. The sporty sandals are a new silhouette that we are introducing and even though we expect the style to be popular amongst our customers, we would like to sell them at a lower price in order to encourage consumption. According to the sales associate, the slip ons were the most popular style not only for the sneakers department, but for the whole store in general. Therefore, we are planning to keep the prices the same in order to maintain the high sales volume produced by this silhouette and price. Wedge sneakers and high tops’ prices were considerably higher with prices ranging from $1090 to $1690. The prices varied and were dependent on what kind of fabric or trims were used. Supergas would also be priced around this area as well. According to a survey we had done at two Steve Madden stores (Shatin and Central), majority of the consumers stated that they were willing to pay around $1000 to $2500 for a pair of sneakers, thus, putting Steve Madden’s shoes in an acceptable price range.
assorment by size
When looking at what percentage of sizes to buy for each style, we first recalled the conversation we had with the sales associate at Steve Madden. According to her, they sold sizes 35 to 40 and size 37 was the most popular size. From this, we can deduce that size 37 has the highest buy. Furthermore, a quick search on ‘The average Body. com’, showed that the average foot size for females in China was 37.5. We then made the buys with these figures in mind. Sizes 36, 37 and 38 had the highest buy percentages, with size 40 having the smallest.
assorment by color
Steve Madden sales associate mentioned that the slip on silhouette was the most popular shoe style in the entire store. Additionally, according to a survey that we had done outside the Steve Madden store in central, we found out that most of the customers interviewed preferred the wedge sneaker silhouette. Therefore, for the store’s buy, we decided to increase the percentage of wedges while still keeping the slip ons as the highest buy. Following which, we also decided to include two new silhouettes to Steve Madden’s sneaker department: Sporty sandals Supergas. Sporty sandals would and haveprints the same buybeasbig wedges as we From our trendand reports, we identified what colours would the comfeel that the silhouette is on trend and demand now and would do well in the ing season and decided to add certain ones into our assortment plan. New fashion On the otherand hand, we would have athe smaller buy formix theofsupergas as we coloursstores. includes magenta orange that joins basic colour black, white would first want to test the market on this new silhouette before buying big and browns. These basic colours would have a higher buy then the fashion coloursa as order. they are more popular according to the sales associate. White has a slightly higher buy than brown as it is recorded as one of the key colours as well for the season. As for prints, we are keeping the animal prints as it is one of the more popular patterns amongst their consumers. We would be introducing metallics, tribal and floral prints as well to the plan. Metallics has a higher buy as it is one of the biggest trends this season. Though tribal and floral prints are upcoming trends as well, we feel that the Hong Kong consumers would respond more towards the metallic sneakers as per the results from the survey..
THE SLIP-ON WEDGE SNEAKERS SUPERGAS SPORTY SANDALS high top-lace up low top- lace up
the high top sneaker sandals boomer ecentric hkd 1090
hkd 690
wedge sneakers the slip ons barnes hkd 1390
eros hkd 990
CARMELA OSORIO LUGO JOJO LIN CLARA SIM