MAD SON
FALL /WINTER 2014 - 2015 1
“ Dress
2
like the woman you want to be. ”
MADISON JORDAN CAUSEY
FAITH YEH
TRISHAWN BROWN
3
4
ABSTRACT What will the young urban professionals of tomorrow value in style and fashion? This is the question that we asked ourselves before we endeavored into the creation of tomorrow’s women’s ready to wear brand. Based off of current market research from Neilsen and Vals, we have focused on the woman just over the age of 30 who has begun to build a successful life for herself after college. As there are numerous lifestyles to choose from, we focused on the young digerati who is not that on top of current trends but still would like to stay forwardthinking and innovative with more emphasis on quality as opposed to quantity.
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MADISON 9
CONTENTS
9
INTRODUCTION The inspiration and foundation of MADISON.
12 THE CUSTOMER MADISON is the brand for a sophisticated and educated woman who finds herself in timeless, yet modern silhouettes.
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18 THE INDUSTRY Analytics of opportunities and threats in the current marketplace related to women’s ready-to-wear.
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34 DESIGN The city has a pulse that makes our woman feel alive and on top of the world; this is evident in the undercurrent of our premier collection. 44
SOURCING & MANUFACTURING
Availability, costs, and logistics pertaining to manufacturers.
44 50 TO MARKET Branding, marketing, and public relations regarding the launch and success of our brand.
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60 CONCLUSION All good things must come to an end, but we are confident that you will want to stay with us to see what’s next. 62
APPENDIX
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BIBLIOGRAPHY
50 7
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INTRO DUCTION
“ Our customer is intelligent, sophisticated, and conscious of corporate-social responsibility. ”
When entering the corporate
different collections and still creating
workforce after completing college
a clean signature look.
there is a need for youthful, professional, and global conscious
Our customer is intelligent,
fashion. This aesthetic is not on the
sophisticated, and conscious of
cusp of the latest trends, but is on
corporate-social responsibility. She
the front portion of the 25 - 44 year
appreciates the finer things in life
old consumer adaptation curve. These
without focus on a name brand alone
consumers are looking for modern and
- she looks deeper into craftsmanship,
classic silhouettes made with both
design, and construction. Given the
innovative and luxurious fabrics that
research gathered regarding location,
will not only last them through one
customer and industry trends, we feel
fashion season, but also give them the
confident in our analysis which should
flexibility to keep them in rotation in
prove to be a successful venture into
their closets by mixing the pieces from
women’s ready to wear.
Opposite Page Victoria Beckham poses as our target market at The Standard: High Line in New York City. Photography by Eric Ogden.
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I N T R OD U C T ION
OUR BRAND PHILOSOPHY At the heart of our company is a consciousness of our customer; she is our friend, our ally, and our hero. She is not perfect but that is why we love her.
“ The current landscape for professional attire seems to be dated and limited in scope. ” MISSION
women’s ready-to-wear for the rising
To be the ultimate house of simple
professional woman. The current
sophistication, style, and creating
landscape for professional attire
desire now and forever.
seems to be dated and limited in scope. Referencing pop culture, the
VALUES
ultimate influential woman is Kerry
We value in all creative aspects the
Washington’s character on ABC’s
concepts of art, culture, and intellect,
Scandal, Olivia Pope. She is assertive,
with specific attention to quality and
intelligent, and powerful all at once
a hint of mystery.
while being draped in beautiful silks and wools from designers such as
VISION
Ralph Lauren and Balenciaga.
We want our customer to have the freedom to dress like the
At MADISON, we believe that one
woman she wants to be. Powerful.
should always dress for success and
Independent. Sophisticated.
for our woman to be the woman they aspire to be.
PRODUCT CATEGORY Initially we are choosing to focus on Opposite Page Model Mollie Starnes poses on the rooftop balcony of the SCAD Museum of Art. Photography by Annagrace Shelton.
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TA R GE T MAR K ET
OUR CUSTOMER With sophistication, poise, and drive, our customer rises to professional and personal challenges. She may not always win, but she gains strength and wisdom along the way. Our target market is based on Prizm.
also an enigma to those around her,
com’s a Young Digerati category. She
however she can hold a conversation
is a woman between the ages of 25
with almost anyone.
and 44, however our primary customer is a woman of 34 years of age. The
Based on the research provided, we
MADISON woman comes from a wealthy
feel that our product will successfully
and cultured household, where
reach our target market based on
education and culture are necessities.
the quality of our craftsmanship.
She traveled frequently in her
Our customer values her time as a
undergraduate careers when studying
professional, as well as personal
abroad making cultural influence key
appearance. She wishes to be
in her life. Her education reaches
known as an accomplished woman of
beyond an undergraduate degree as a
individual grace and ambition. We
result of her upbringing.
wants to ensure that our client feels valued and appreciated, and that her
She values relationships with other
garments are the signature pieces
people on an immense level. She is
that fit her professional and personal
renting to own her first home to lay
lifestyle.
the groundwork for her adult life, free from the constraints on independence
The MADISON woman spends her
and finally stepping out into the real
free time with family and friends
world as an adult with her own income
exploring the world around her, both
and expectancies and goals.
domestically and abroad. With her busy lifestyle and newfound career,
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Our customer comes from a worldly
the MADISON woman finds herself
background, which allows her to be as
shopping online frequently opposed to
dynamic, and standout as possible in
visiting a brick and mortar store for
a crowded room. She is charming and
her necessities. The MADISON website,
Model Mollie Starnes poses on the rooftop balcony of the SCAD Museum of Art. Wearing color-block sheath dress by MADISON. Photography by Annagrace Shelton.
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TA R GE T MAR K ET
however, will in turn feature some of the comfort received in a specialty store such as a 24/7 customer service representatives and styling options. Shopping is a pleasure for the MADISON woman, and we want to keep it that way to allow her to focus on her career and other positions in her life. The MADISON customer also enjoys watching IFC, the Independent Film Channel, for inspiration and cultural influence. A lot of her style and rhetoric is gathered from different cultures, travels and observations. This interest comes in part from her rich heritage. Her interest in other cultures translates into her personal life as she frequents foreign bookstores and befriends those who peak her interest. She drives an Audi, a sleek and sophisticated compact vehicle, although she rarely drives, other than to work, because she would rather save money on vehicle maintenance for other endeavors. In addition Model representing our target customer, Rebecca George. Photograph courtesy of ShutterStock.
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TA R GE T MAR K ET
to this, the MADISON woman lives
her own.
in a fashionable neighborhood with access to fitness clubs and local
CUSTOMER PROFILE
clothing boutiques as well as trendy
Rebecca George is a single female and
restaurants and popular bars. The
is 34 years of age. She is of British
MADISON woman is very interested in
descent, as her family emigrated
helping to generate local economy,
from the UK when she was t eleven
but does not mind chain stores and
years old. Because she was raised in
the opportunities they bring to her
Boston, Massachusetts she has adapted
generation in the form of corporate
to being different, following her
social responsibility and overall
parents encouragement of embracing
revenue into the community. She is
her differences and adversities. Her
very objective in her thinking and
slight British accent is always the
beliefs. In turn, this allows MADISON
topic of discussion, which enables her
to design and conceptualize those
to charm others with her personality
values into garments that suit her as a
and quirky wit. Rebecca is driven
respectable, modern consumer.
with a sense of wanderlust that is only satisfied through travel. This desire
Our target market is on the rise post-
has led her to study abroad during
graduation with investments and
her undergraduate career in Dubai,
success on her mind. She lives in
Istanbul, and Rome.
up and coming areas like Colorado,
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Massachusetts, Connecticut, New
The cultures she encountered inspired
Jersey, and Maryland. The MADISON
her in more ways than one. Her snow
target market is in search of versatile
globe collection from each of her
signature pieces that will easily fit
travels abroad prompted her to want
into her existing wardrobe as timeless
to make a difference in her world.
pieces, while easily standing apart on
She took these notions and received
“ The cultures she encountered inspired her in more ways than one. �
a Master’s of Science in Epidemiology from the Stanford School of Medicine. Pfizer soon after hired Rebecca as a cellular immunobiologist granting her an annual income of $90,783. She uses this income to repay a hefty amount of accumulated student loans, investing in a 401K, and renting to own a home outside of Boston, Massachusetts. Rebecca wants to remain near her family, but at a comfortable distance to remain independent and constraint free. Rebecca is a quirky, fun, and professional woman that enjoys convenience and quality. She uses her $900 a month disposable income to invest in her wardrobe and overall appearance. She is always inspired by other cultures, which plays a role in her aesthetic and collection of sophisticated and enigmatic pieces. Constantly keeping the world guessing, Rebecca is developing herself through everything surrounding her.
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T H E I N D U ST RY
THE INDUSTRY The apparel industry allows MADISON the opportunity to flourish and cater to the modern woman.
DEMOGRAPHICS & PSYCHOGRAPHICS
by looking at who within these
Based upon the U.S. Census explorer,
states ranked the highest in income.
we looked into what states had the
This research led us to where we
highest education level, which in our
believed we would be able to target
customer’s case would be a Bachelor’s
our product effectively and reach
degree or higher. High education not
our target customer based on these
only justifies a higher income, but
demographics. The following data is
offers a suggestion in the quality and
based on the median age bracket of
price point expectations. This is the
25-44 in each state as described on
manner in which all MADISON products
the US census explorer and Zipskinny.
are based.
com websites.
We also looked into who held the
Colorado:
highest median household income
36.7% Bachelors+
as of 2012 to decipher where our
Household Income (2012)
$58,244% Median
target market would be shopping from on our e-commerce store.
Massachusetts:
Within the mapping of this, we were
39% Bachelors+
able to narrow our search down to
Household Income (2012)
$66,658 Median
California, Washington, Colorado, Illinois, Virginia, New York, Vermont,
Connecticut:
New Hampshire, Massachusetts,
36.2% Bachelors+
Connecticut, New Jersey, and
Household Income
$69, 519
Median
Maryland. New Jersey: Within this segmentation of the
35.4% Bachelors+
country, we were able to narrow
Household Income
down the possibilities even further
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$71, 637 Median
“ Our customer is intelligent, sophisticated, and conscious of corporate-social responsibility. ”
Model representing our target customer. Photography courtesy of ShutterStock.
Maryland: 36.3% Bachelors+
products featuring designs that further $72, 999 Median
Household Income
reflect a woman of status and style. 71.8% were married with 22.8% of people making between 50-75k. What
Within Colorado, for example, we
this information offers us, is a great
chose Douglas County as the best
idea into the demographics of the
location that we would be able to
given areas and allow us to cater to
focus in on. Research from Zipskinny
our target customer. We understand
shows that area code 80118 has an
her interests and what she is looking
average income of $101,108 per
forward to when she visits us online.
household and a per capita income of
The following cities in each of the
47,147 USD Douglas County also had
states listed are the counties in which
the highest education rate at 45.8%
we would like to specifically target
of its residents holding a Bachelors
and expand MADISON based on female
degree or higher. High education
ratio, income, education, per capita
rate signifies a higher income as well
income, and population:
as a cultural interest, which would attract this demographic to MADISON’s
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T H E I N D U ST RY
COMPETITION
to offer over the majority of these
Our competitors within each county
competitors is a difference in the
and state were primarily focused
aesthetic. We want to provide quality
within malls and shopping centers,
and fulfillment without compromising
which offers us a competitive
the price, fabrication, and style that
advantage, however it does allow the
is true to the brand. Fast fashion such
opportunity for these competitors to
as Zara is a prominent force within the
hold an online presence as well as a
apparel industry, however with this
physical shopping experience. Within
quality is compromised in the form
New Jersey our fiercest competition
of shortened lead times and runway
was within Menlo Park Mall. Among
imitations. Madison wants to remain
these were banana republic, BCBG,
different in our approach to the
BEBE, cache, Club Monaco, Coach,
customer as well as to our aesthetic
Express, Guess, J.Crew, Michael Kors,
and creation of our designs.
Nordstrom, and Zara. These stores offer not only a physical shopping
Colorado and Connecticut posed a
experience, but also hold an online
similar instance with competition
presence. What Madison would have
however with a higher grade of Opposite Page Model represents our target customer. Photography courtesy of ShutterStock.
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T H E I N D U ST RY
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quality within the competition of
Lord and Taylor as well as Nordstrom.
Nordstrom (our biggest competitor
Both of these department stores
in regards to quality within the
wholesale a great deal of competitors
women’s apparel industry according to
to Madison, such as Hugo Boss. The
Marketline reports), Armani Exchange,
aesthetic is in line with the Madison
Anthropologie, banana republic,
woman and the price point is tangible
cache, Express, Guess, J.Crew, and
enough for our target customer to
Michael Kors. Among Colorado’s
appreciate the quality that goes with
competition, Madison is focusing
it. The 34 year old Madison woman,
primarily on the higher end stores
however, frequents department stores
that also offer online shopping in
but would prefer less of the hustle and
addition to the physical store presence
bustle of the mall department stores
such as Nordstrom, J.Crew, Guess,
and would rather get her necessity and
Armani Exchange, and Michael Kors.
go to run her next errand. Our online
Our advantage over these stores is
presence will be much cleaner than
that although we are solely online,
the websites of the above mentioned
we also cater primarily to women.
vendors and would feature less work
This cuts down on some of the sifting
on the part of the customer, such
and navigating through clothing in
as the utilization of technology like
stores and online. The convenience
Fits.me as a virtual fitting room. Our
of shopping with Madison over any of
customer will be able to easily and
the competitors within the area out
quickly become familiar with our
ranks the in store experience, because
website and navigate her way from the
we do offer a very different aesthetic
shopping experience, to the virtual
than where our target customer in
fitting room, and checkout with less
Colorado would be shopping.
hassle.
Burlington Mall in Massachusetts offers
We recognize our competitor’s and
“ The convenience of shopping with MADISON over any of the competitors within the area outranks the instore experience.
”
see the true competition lying in the
competitors within the women’s wear
online presence they all seem to hold.
apparel segment (see appendix item
However, MADISON’s confidence is in
4). Although these competitors are
the understanding of our customer,
not within our target market segment
who values an in store shopping
or aesthetic, we still are focusing
experience but utilizes the ability
on their numbers and marketing
to shop online for its convenience,
strategies to begin the strategic
women’s apparel focus, and specialty
processing of branding MADISON. It
store care and attention that can
is necessary to note that Nordstrom,
only be found within MADISON. (See
however, does wholesale our biggest
appendix item 4 for full graphs of
competitor, Hugo Boss.
competition). As an American based company, 27.1% SCOPE & SIZE
of the apparel industry is accounted
Women’s wear is the apparel industry’s
for by the US globally and 31.8% of the
most lucrative segment, according to
apparel industry is women’s wear as
Marketline, with 51.7% of the industry
Marketline has reported. This speaks
value as demonstrated in the pie chart
bounds for MADISON. We believe that
below (see appendix item “Market
by meeting the niche market and
Segmentation”). The U.S. accounts
bridging the gap between luxury and
for 27.6% of the apparel retail industry
trend apparel for women, we will be
globally (see appendix item 6 for
able to make a profitable venture in
Marketline chart). With such a large
women swear while catering to an
portion of apparel in women swear,
overlooked demographic as well.
the opportunity for new entrants such as MADISON are bountiful. Marketline also states that Gap, H&M, and Nordstrom, Inc. are our top three
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T H E I N D U ST RY
INDUSTRY TECHNOLOGY Technological advances give an edge on competition and an innovative to the customer.
WOOL
SILK
Wool is the textile fiber obtained
Silk is widely regarded as the most
from sheep and certain other animals,
luxurious textile on the planet. Its
including cashmere from goats, mohair
rich history, rife with wars, secrecy,
from goats, angora from rabbits,
and centuries of trade, bears little
and other types of wool from camel
resemblance to the fabric’s current
lids. Wool has several qualities that
reputation for being the epitome
distinguish it from hair or fur: it is
of high fashion. It will serve as an
crimped, it is elastic, and it grows in
accent to garments in the MADISON
staples. While in the United States
collection and would also be utilized
the term wool is usually restricted to
for lining. It serves as a soft finish
describing the fibrous protein derived
against our customer to allow her the
from the specialized skin cells called
comfort she requires throughout the
follicles in sheep. In the UK the term
day.
may be used of any long curling fiber such as wood wool, wire wool, etc. Wool would be utilized as our primary
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3D PRINTING Still in its infancy, 3D Printing has
fiber of choice within the Fall/Winter
already made its way to the world of
2014-2015 season. Its insulation,
fashion.
versatility, and the quality associated
bikinis have gone under the laser of
with it allows us to explore many
a 3D printer, with a notable example
options. We want our customer to
being the Invisible Shoes by Andreia
perceive and experience the quality
Chaves.
and care that we take in every
shoes are carved by a 3D printer and
garment, and with wool, a natural
then manually merged with a classic
fiber, we will be able to establish this
pump.
notion and allow her to feel luxurious
have crafted bikinis using the 3D
and worthy.
printing route.
Everything from shoes to
These stunning, faceted
Others like Continuum Fashion Ecouterre has been
“ ...apparel has one of the highest rates of return on items purchased online... ”
on the trail of 3D-developed fashion,
would leave our customer wanting to
and their 3D roundup captures a lot
know more from us from a design and
of this trend in action. This form
digital aspect.
of manufacturing would allow for shortened lead times and efficiency.
FITS.ME SIZING TECHNOLOGY
This technology is one that we are
According to Aria Hughes of WGSN,
very excited to utilize in a mature
apparel has one of the highest rates
phase of MADISON’s conception.
of return on items purchased online largely in part due to fit and size.
LASER-ETCHED FASHION
With the lack of trying each garment
In contrast to many of these new
on before purchase, the need to
technologies, laser-etched fashion may
accurately depict sizing has become
be the furthest along. Mainstream
critical on the online commerce
designers and retailers have developed
platform. IMRG, an online retail
laser-etched products that can be
association, states that 15-40% of
found on the shelves in many stores
clothing purchased online is returned.
today. FashioningTech has rounded
This number in turn affects the gross
up a recent collection of laser-etched
margin and profit of a company’s
clothing that has already hit the
revenue. Retailers are answering
market. Design student Alba Prat may
this critical flaw with a virtual fitting
represent the remaining frontier of
room technology to reduce these
laser etched fashion, having released
unnecessary costs.
a conceptual series of laser-cut neoprene that is truly on the cutting
Macy’s introduced this technology
edge. We will be utilizing laser
while enhancing its features with
etching in the branding and marketing
humanizing qualities 2 years ago
form of MADISON, because of all the
by using human avatars opposed
dynamic qualities it holds. Its impact
to robotic mannequins. Within
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T H E I N D U ST RY
our target market, the customer
that the MADISON woman desires.
would be able to have more of an
MADISON would be able to utilize
experience opposed to a very distant,
companies such as Virtusize, who
intangible relationship with their
do not require a sample garment of
online retailer. One of our strongest
each article, but would allow us as
competitors within the women’s
an up and coming company to upload
apparel segment, Nordstrom, has also
spec sheets and measurements from
begun to implement the technology
our technical packages to format the
as well. Henri Lloyd uses the Fits.
virtual fitting room.
me technology and has seen returns reduce by 70% since adopting the technology in 2013. The technology allows for less input on the customer’s behalf, such as body measurements regarding a tape measure. The experience of a virtual fitting room would not only benefit our customer, but it would greatly impact our sales from the launch of our website. It would allow the shopping experience to be less time consuming and less of an all-around hassle. Allowing our busy customer the accessibility to this form of technology and reducing her frustration of possible returns and dissatisfaction would provide her with the fulfillment
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T H E I N D U ST RY
SALES TRENDS We understand how the MADISON woman experiences shopping. Research on the apparel industry trends grants us insight into producing a successful venture. Research from the Freedonia Group
prototype speaks for the collection’s
shows that retail sales of women’s
versatility, fitting into the second
clothing in the United States are
largest sales, categorized as “other”
predicted to reach $113 billion in 2016
at 28%. It is trending in color scheme
based on economic advancements,
of iridescent blue and a deep black
population growth and high costs of
with color blocking incorporated into
Chinese imports. Tops are the leading
the design. Combining trend and sales
clothing item (see appendix) within
reports fro Stylesight and Freedonia
this amount leading sales of $42.5
Group reports, we are confident that
billion predicted for 2016 which is a
our researched target market will find
2.8% rise from 2011.
the void filled in her wardrobe after shopping with MADISON.
The MADISON Fall/Winter 2014-2015
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collection will feature wardrobe
Specialty stores, as mentioned earlier,
staples such as tops, bottoms, and
are also leading channels for women’s
dresses. The research we have
apparel going forward for 2016. We
collected work in favor with our
concur that this advancement, in
proposed line based on is eclectic
conjunction with our knowledge of
nature and the heavy variations of
our target market that is shopping
tops, such as cowl neck sweaters,
primarily within these specialty
outerwear cover-ups, and color and
stores, is due to the personal touch
fabric blocked blouses. With sales
received upon shopping. However,
predicted to rise 2.8% by 2016 (see
another channel of selling set for
appendix item 13) in tops alone, we
projection in 2016 is e-commerce,
are confident in our contribution
working in the favor of MADISON.
to the statistics based on factors
Online shopping is predicted to
including demographics and taste
expand based on convenience and host
levels of the MADISON woman. Our
features such as free shipping and
“ Online shopping is predicted to expand based on convenience and host features. ”
returns. We have seen these features
market based off of the Prizm.com
recently become prevalent with our
analysis being between 25-44 and the
competitors, such as Nordstrom and
MADISON woman being a 34 year old
Gap, within the past 5 years. We feel
woman, our research and statistics fall
that with such a diverse target market
in line with this report, which give us
geographic segmentation within the
more confidence in our ability to sell
proposed states of Colorado, New
and market the MADISON concept (see
Jersey, Chicago, Massachusetts, and
appendix item 12).
Connecticut and possibly beyond we would like to offer a vast online
Unique characteristics of our target
shopping experience to cater to our
customer are her disposable income
customer’s lifestyle of satisfaction
(about $900) and her frequency
and fulfillment of her expectations
of shopping. Our customer shops
regarding quality and assurance in
only after her newfound adult
delivery. By combining specialty store
responsibilities are fulfilled, such as
qualities, like personal assistance and
investing in her 401k and repaying
service with the ease accessibility
her student loans monthly. She shops
of online shopping, we feel that our
when she feels the urge or knows
customer will find the wardrobe and
without a doubt that she needs that
experience she is longing for.
extra addition to her wardrobe. All of these characteristics, in association
The Freedonia Group also states that
with the aforementioned demographics
our target customer between the ages
allow us to take note of the MADISON
of 18 and 34 has the greatest interest
customer and her aesthetic, style,
in fashion of all demographics and
and budget.
will spend the most on clothing for
projected to rise by 2016 offer us an
status and statements, rather than
incentive to focus on the MADISON
out of pure necessity. With our target
woman’s shopping habits and her
Sales trends in the US
29
available funding. We want to use this
entrants, however we are aware that
information to note when to offer her
buying power is moderate to high
discounts for example to allot her the
within the women’s apparel segment
freedom to spend o necessities and
in the industry as well as the lifestyle
splurge when she can.
of the target customer of MADISON. On a global level, the United States
Affluent areas equal lifestyle and
accounts for 27.6% of global women’s
status when it comes to all aspects
wear, while Europe leads with 36.3%.
of life, including fashion. The
This number is set to increase by 2017
name, “Young Digerati”, says it all
to 17.9% of American women’s wear.
for individuals within this segment.
The United States is forecasted to
This purchasing behavior offers the
reach a 3.5% growth from a market
opportunity for marketers to influence
value of a little less than $200,000
her buying power. By sending the
million (see appendix item 7). By
message that MADISON is a must have
2017, MADISON will be an established
or a necessity to be relevant within a
online women’s apparel company. We
professional community, she will feel
want to be comfortable with new
confident in her purchases. However
entrants into the market because
the rapid changes of fashion increase
of the clientele we will have gained
buying power, which we anticipate
as well as having our foundation
will make us obliged to offer what she
solidified in such a small niche.
wants at the price that she would pay (see appendix item 8).
There were several trends we have mentioned that require further
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IN STORE SOCIALIZING
examination that would further
The steady growth of the women’s
enhance our customer experience and
apparel industry within the United
company persona. Among these trends
States offers fair opportunity for new
is In store socializing. Retail stores
SALE S TREND S
“ Our customer is intelligent, sophisticated, and conscious of corporate-social responsibility. �
are now concentrating their efforts
trends was merging content with
on communication among customers.
sales. Customers are likely to buy a
There is a further desire for customers
product while reading or watching its
to spend more time in stores as this
review online. This opens up a new
could help in increasing sales. Sales
opportunity of creating and improving
within the store are closely linked
sales through content of various
to the time people spend in them.
kinds. It is likely that this would
Stores also are connecting with people
be a common occurrence that most
in their daily lives through various
customers purchase their products
social media to help the customer in
while reading reviews or suggestions
getting acquainted with the staff, the
from family and friends. MADISON
company, and the product. MADISON
knows how personable our client is
wants to implement this mentality to
which is why we want to focus on
coherence customers to purchase and
getting things done right the first
browse products recreationally as well
time. We will be taking various
as out of necessity, but comfortably.
precautions to ensure this happens
Although we are opening as a solely
such as the proposal of the virtual
e-commerce company, we intend to
fitting rooms, 24/7 customer service
branch into these specialty store
and the implementation of a vertically
experiences because we understand
integrated manufacturer, the Taha
our target customer and how she
Group, who focuses heavily on quality
so greatly appreciates the effort
and effective use of the right product
and time invested in her shopping
at the right time, for the right price.
experience. MERGING CONTENT WITH SALES Another trend we want to elaborate on in consideration with our segments
31
T H E I N D U ST RY
RETAIL EXPECTATIONS With high quality and fabrication in mind, the MADISON woman expects the best quality to mirror her current and/or projected success. MADISON’s sizes range within the
fabrics used, transportation, labor,
women’s wear segment, as well as
packaging, and all of the components
within the given demographic ranges
used in fabrication. All of which,
from the standard small to large or
resulted from the best materials that
from 0-12. The following retail prices
were suitable for the MADISON woman
are based on our biggest competitor,
and her needs. She is our primary
Hugo Boss.
concern and our price range shows the
Hugo Boss targets a
similar customer as MADISON and also
care taken to ensure her satisfaction.
features a similar aesthetic. The and expectations that the Hugo Boss
“ The MADISON customer
customer holds high, such as quality of
shares values and expectations
MADISON customer shares the values
fabrics, fulfillment and fabrications. Therefore we feel the retail pricing
of quality, fibers, and
is justified in the quality and overall
fabrications.
appeal. Dresses- $225 to 750 Sweaters- $225 to 750 Pants- $175 to 285 Shawls- $325 to 780 Skirts- $215 to 445 Blouses- $175 to 255 Our pricing indicates quality and fabrication that MADISON will establish a reputation for. Within these prices, as justified in our cost sheet is the
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”
33
D E SI GN
PRODUCT DEVELOPMENT Creating wearable pieces for the woman you want to be.
The Fall/Winter 2014-2015 MADISON
blocking to a new level. It is similar
collection is a manifestation of our
to painting a portrait on a canvas.
customer. Because she is constantly
Panels in graphic blocks of color offer
on the go and working to build her
dynamic shapes with interesting new
life, she wants to look the part of
dimensions, states Stylesight.com.
“the woman she wants to be.” Our
One of the pieces from the MADISON
inspiration came largely in part from
design team is a color blocked
where our customer lives, which is
sheath dress in different wools and
an urban area, where cityscapes are
multiple color ways. These styles
the background to her life and her
offer dimension and a dynamic
dreams are knocking at her door and
composition. The MADISON customer
inspirations appear on ever corner.
would appreciate the care taken in not
We know that our young woman
only the design, but also in the fabric
enjoys the geometry and symmetrical
choice of wool and the use of princess
landscape in the architecture of the
seams for a close, yet comfortable and
city, but also loves the feminine touch
professional fit that is appropriate
and soft nature of a dewy morning
for the workplace as well as for social
in the mountains of her hometown.
recreation fit.
Keeping this in mind, we found several trends that were prevalent on the
LUXE LAYERING
runway as well as remaining in line
As demonstrated in the above
with our vision of the MADISON woman.
photographs from stylesight.com by Michael Kors and Derek Lam, layering
COLOR BLOCKING
34
is another trend to take note of this
Color blocking and fabric piecing
past season. We find this extremely
have been prevalent on the runway
significant due to our customer
lately. The new formation of creating
lifestyle. We aim to make each piece
a mosaic on fabric takes color
tailor made to the young professional
“ She enjoys the geometric and symmetrical landscape, but also loves the feminine touch of a dewy morning. ”
woman who needs versatile garments
climate in search of optimism. This
to work into her already existing
season our target customer and beyond
wardrobe, but also for her professional
are settled and a bit more comfortable
lifestyle. The MADISON woman needs
in their financial state and future,
apparel to wear from day to night,
therefore our colors are soft and
from work to play. We want to utilize
muted depicting a calm demeanor.
this classic trend of layering with
This forecast also depicts our theme
our design and concept creation as
in colors that are soft and faded to
our foundation for design. We feel
reflect our woman’s tone, using soft
successful knowing that our customer
colors against a rigid background to
can continually change her appearance
shroud her even further in enigma.
by having the flexibility to integrate
In doing so, we have captured the
old and new garments to create a
overall vision of the MADISON woman
signature look.
as a young urbanite on the rise professionally, the product, as well as
CONCEPT
the company.
The inspiration and featured trends play a great role in the creation of
All of our apparel will follow the
the product line. We utilized these
theme of comfort, versatility, and an
three concepts (layering, blue hues,
urban sophisticated woman’s definition
and color blocking) to come up with
of luxe. We note that in previous
a line that our customer cannot live
seasons, silhouette and structure
without. Our color story, for example,
have taken a more tailored form
depicts our forecasting for the Fall/
and resemble menswear. MADISON,
Winter 2014-2015 season. We took
however, will lean more towards a
note of the color combinations last
classic tailoring and cut with structure
year, which were bright colors in a
and geometry within the design
very uncertain economic and political
through the use of color blocking
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36
DE S IGN
and paneling with contrast being in the fabrics and colors. We want to keep lines and shapes as clean as possible paying homage to architectural menswear tailoring we have seen on the runway while remaining true to the MADISON aesthetic.
Our inspiration evokes serenity and romance of the city on a cool and cloudy autumn day while maintaining a sense of power and femininity.
37
D E SI GN
PRODUCT LINE The concepts and inspiration stated were incorporated into the product line expressed.
The first garment is a simple jacket with a single button to fasten. We chose this garment specifically for its layering ability and versatility.
38
The second garment came from the architecture featured in the theme board. The paneling depicted is symmetrical and is reminiscent of the linear nature of the iron work in the Chrysler building. The panels would be constructed through separate pieces that would be stitched together to create this piece. The panels would be color blocked in wool fabrics featuring multiple colorways. We would like to stay primarily within the wool family or some form of a wool like material such as the man-made fiber, acrylic.
We feel that this piece
plays a significant role in the seasonal trends as well as for our customer’s taste level and quality expectancy.
39
D E SI GN
The third garment would be our sample piece, a simple sheath dress that could easily be transformed from a modest work piece to an evening dinner ensemble for the young professional. We would again like to color block as well as utilize paneling to offer a dynamic composition, flattering silhouette, and wearable garment.
Opposite Page Model Mollie Starnes poses on the roof of SCAD Museum of Art. Photography by Annagrace Shelton.
40
41
D E SI GN
Anna Sui Navy and Teal Brushed Wool Striped Panel $25 / Panel Color: Navy and Teal Width: 60" wide x 31" long Content: 100% WOOL Product #: 304191
Marc Jacobs Double Cloth Ivory Wool Anna Sui Aqua and Brown Lacquered Plaid Coating Wool Tweed The final two pieces are$35the more / Yard $35 / Yard Color: Ivory Color: Aqua and Brown items. The cowl Width:neck 54" wide Width: 60" “basic” wide Content: WOOL Content: WOOL, ACRYLIC sweater made from the finest wools Product #: 302393 Product #: 304157
offers comfort and balance. On our customer’s days of rest, she could also pair this sweater over a button up oxford for a chic and professional look.
Iridescent Blue Green Solid Shantung/ Dupioni $22 / Yard Color: Iridescent Blue Green Width: 54" wide Content: 100% Silk Product #: FS36003-1061
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Black/White Herringbone Suiting $14 / Yard Color: Black/White Width: 62" wide Content: WOOL Product #: FW11827
Marc Jacobs Ash Jacobs Ash Wool Tweed $25 / Yard Color: Ash Gray Width: 59" wide Content: WOOL Product #: 302385
Anna Sui Navy and Teal Brushed Wool Striped Panel $25 / Panel Color: Navy and Teal Width: 60" wide x 31" long Content: 100% WOOL Product #: 304191
Iridescent Blue Green Solid Shantung/ Dupioni $22 / Yard Color: Iridescent Blue Green Width: 54" wide Content: 100% Silk Product #: FS36003-1061
Anna Sui Aqua and Brown Lacquered Plaid Wool Tweed $35 / Yard Color: Aqua and Brown Width: 60" wide Content: WOOL, ACRYLIC Product #: 304157
Marc Jacobs Double Cloth Ivory Wool Coating $35 / Yard Color: Ivory Width: 54" wide Content: WOOL Product #: 302393
Marc Jacobs Ash Jacobs Ash Wool Tweed Black/White Herringbone Suiting $25 / Yard $14 / Yard The trousers completeColor: theAshproduct line Gray Color: Black/White Width: 59" wide Width: 62" wide to offer her a comfortable Content: pant WOOL for Content: WOOL Product #: 302385 Product #: FW11827
work. These trousers also accentuate any body type with the darting and the high waist as well as offering the classic tailoring that is a staple look for our customer.
43
SOU R C I NG & MAN U FAC T U R ING
SOURCING & MANUFACTURING We believe in our product quality and we know what our customers want.
Turkey was chosen as our location to
Eastern industries. This responsibility
manufacture our garments because
would allow MADISON freedom to focus
our primary fabric will consist of wool
more attention on other production
and woven fabrics, which the Turkish
matters once a level of trust was
textile industry offered better quality
established with the Taha Group, our
at a manageable price.
chosen manufacturer.
We would be
able to effortlessly have a standpoint Turkey is the sixth biggest ready
on corporate social responsibility.
to wear and apparel manufacturer in the world, as well as the second
Skilled workforce, CSR, fiber access,
largest supplier (following China) in
and high technology are all viable
the European Union, according to the
reasons to work with a Turkish
cultural exchange website.
company to manufacture our garments at a cheap cost advantage, shortened
Turkey was chosen as our manufacturer
lead times and quality are all primary
location, not only because of the
reasons MADISON will be utilizing a
access to fibers such as wool and
Turkish manufacturer.
cotton but also due to shortened lead times. Delivery times are two to three
We chose the Taha group as our
weeks opposed to month long delivery
manufacturer. They are is a vertically
times in Eastern parts of the world.
integrated full service apparel manufacturer group in Turkey. This
44
Another strength of the Turkish
group is headquartered in Istanbul,
apparel industry is their
but has expanded over the years
internationally acclaimed standards.
throughout Turkey and also oversees.
There is a ban, for example, in the
Comprised of sixteen companies,
country on carcinogenic azo dyes,
we would be utilizing Yavuz Tekstil,
which are still used freely in Asian and
a woven garment manufacturing
company, with plants in Istanbul and
in line with the customer at realistic
Safranbolu. Both plants manufacture
prices working on a constant program
denim and casual wear with special
of improvement. TQM, Total quality
washes and tailored garments made
management, throughout the company
with intensive care.
personnel contributes to the success of the Taha Group and proposed
The Taha Group’s values are in line
satisfaction within MADISON. The final
with those of MADISON. The quality
note in the Taha Group policy summary
policy for example, states “The main
is delivery at the right time for the
emphasis is prevention not cure, and
right price, which will be greatly
this is achieved during the production
appreciated. Getting it right the first
process.” Their policy is to make
time will be a conscious aspiration.
products that utilize specifications
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46
SO URCING & MANUFACTUR ING
47
SOU R C I NG & MAN U FAC T U R ING
SALES PLAN Everything has it’s season, that’s why we have analyzed consumer spending habits and hypothesis what could be an accurate forecast for our first year in business. SALES PLAN
fall season, students start returning to
According to sales plan, MADISON
school and it is not a traveling season,
sales volume varies throughout the
therefore sales starts to rise again.
year. In the beginning of the year,
The sales will climax at the end of the
sales increases steadily from January
year. During November and December
to May. It is because our current
when the holiday season begins. In
products are mainly made of wool,
2013, the online shopping during Black
which is a perfect material for the
Friday weekend increased 40%. The
A/W 2015 collection. Another reason
highest sales occur in December when
for the surge in sales is due to tax
everyone is buying Christmas gift and
returns, when people have more budget
has the best promotions of the year.
for shopping. However, from June to
But after the holiday season, sales
August, the sales will drop as it is not
would lose momentum in January.
a typical shopping season, and people usually go on vacation so less of the budget is left for shopping. Entering
Opposite Page Shopping mall scene. Photography courtesy of ShutterStock.
48
49
MARKETING
TO MARKET Strategic tactics and practices of a justified amount of marketing equipt MADISON with the ability to learn and grow.
As a part of our marketing for
Our booth would be exhibited with
MADISON, we will be attending Magic
high-end luxury brands such as Gucci,
in Las Vegas. We feel that attending
but the local independent designers
this trade show once a year in August
would also be in attendance at the
will greatly benefit our brand and
same show. This would not only
the way in which we are perceived by
allow us the opportunity to brand our
our peers in the industry. We would
product, but would allow us to scout
like to attend the August exhibition
new trends from other designers and
because our Launch party is set for
companies. We feel that MADISON
the first weekend of September. The
would be a standout company within
awareness we will obtain at Magic, will
Magic, unlike anything being done in
allow for more invitations to be sent
women’s apparel.
to industry buyers and merchandisers sourcing for Fall/Winter 2014-2015.
The price to exhibit within Magic
The goal in our attendance at this
ranges from $3000 to $5000 dollars,
show is primarily to gain momentum
depending on the size and the
in our efforts as a successful women’s
amenities of the booth. In accordance
apparel company, bridging the gap in
with this price, we would like to
the women’s apparel sector. According
utilize as many of the suggestions
to the Magic website, magiconline.
within the Magic brochure as possible.
com, “Magic is the largest global
One of these are freight forwarders;
market week for contemporary men’s
they will pick up and deliver our
and women’s apparel, footwear,
samples and props to deliver to our
and sourcing. It is the most
booth at Magic before we arrive, for a
comprehensive destination for fashion
total of $250.
buyers and brands in the world.” This
50
is why we feel our product marketing
In addition to this, we feel it is
would be well suited within Magic.
important and critical for all the
“ We feel that MADISON would be a standout company within the Magic trade show. �
founding owners of MADISON to be
Overall, we feel that Magic is an
in attendance at the first showing
ideal marketing strategy for MADISON
in August 2014 to enhance our first
because of the exposure we will
trade show experience. At all times,
receive, so close to our launch
there will be one or two people at
party as well as the influence and
the booth handing out line sheets,
inspiration our company will derive
postcards, and inviting buyers as well
from the experience and the trend
as interested industry professionals to
reports we will gather from simple
our Chicago product launch party to
observation.
get a closer and intimate look at the entire collection. At the same time, another owner will be observing and taking notes on all of trends being displayed by other vendors. This method will allow a steady balance of professionalism and proactive practices. We want to constantly stay on top of the trends and with this being our first show it is necessary to take in the most of the experience. The price of a round trip ticket to Las Vegas from Chicago is $318 per person. Another cost to bear in mind is the hotel and travel associated with the stay in Las Vegas. This will run at about $1000 for a three day stay, including transportation.
51
MARKETING
BRAND IDENTITY The customer experience does not end after a purchase, that is why we have carefully thought about every detail that our image is reflecting to protect our customer relationships. ONLINE
website. This amazing new feature
In the creation of our website, like
reduces the clicks to finalizing a
through out the rest of our brand
purchase, and therefore significantly
creation, we kept our customer
reduces the number of shopping cart
in mind. She is sophisticated,
abandonments. With our 90 day
intelligent, and very time-poor. She
return policy, consumer confidence is
no longer has the luxury of spending
established and further maintained,
hours searching the internet for a
therefore the entire customer
complete and cohesive outfit which
experience is unobtrusive and easily
is not dated or restricted to a certain
accessible.
trend. Her wardrobe is business
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smart and casual featuring many solid
STATIONERY
colors and clean silhouettes. By this
Correspondence was once seen to
standard, our website was created to
be a participatory art which was
be clean, straight-forward, and very
reciprocated between distanced
easy to navigate. As our customer
friends, relatives, businesses,
browses current collections to build
diplomats, and heads of state. The
on to her existing wardrobe, she can
choice of stationery gives an instant
easily save items to her cart for future
impression of who the correspondence
purchase or she can check out with
is coming from. The texture and
two clicks of her mouse. Because
weight of the paper used for our
of the advancement in personal
business cards and stationery as
operating systems on Mac’s and PC’s,
well as format are silent indicators
our customer now has the option to
of everything that person/brand/
store her credit card information
company. When designing our
safely on her computer which can be
stationery, we felt that our customer
automatically filled into the payment
would appreciate the ease of reading
section during checkout on any
between a good balance of contrast
and negative space. This indicates
that makes the owner’s experience
that our brand is respectful to the
that much more special. The feel of a
reader by presenting an easy to read
silky ribbon as a shopping bag handle
and easy to understand specimen.
and that heavy textured paper used
We feel that our contemporary
as a canvas for a business card - these
and timeless aesthetic is also
are the details that make packaging
communicated in our format which
memorable and further reinforce
includes classic contrast of sleek
a brand’s image. To support our
black text on white card stock.
sophisticated brand image we decided
Black, like white, has everything -
that presentation truly is everything.
they create absolute beauty on their
When our customer finally receives
own as well as when they are paired
her order from the mail and begins
together which marries strength
the unboxing process, we wanted her
and delicateness, singularity and
to be present in the experience and
sensuality, classic and contemporary.
really feel a connection between our
Timeless.
brand and her lifestyle. As she grips the lid of our mat black box, she
PACKAGING
notices that she has in her possession
There is something about subtle
not just another cardboard box that
details in the way an item is packed
should be discarded, but a thickly
53
MARKETING
54
pressed cardboard box that is discreet
skin. The hang tags attached to our
enough to be reused as a gift or for
garments were created to comply
storing her favorite collectibles from
with international customs standards
her travels abroad. The MADISON logo
on one side featuring appropriate
is precisely cut out of the lower left
model, size, suggested retail price,
corner by a laser cutter which gives
and SKU numbers while featuring our
depth and visual interest against the
brand name, brief description, and
rest of the box’s smooth mat black
size on the other side for customer’s
surfaces.
convenience. The white hang-tags are then attached to the garments with
LABELS
a simple black thread - echoing our
When it comes to product
clean and sophisticated aesthetic.
identification, we at MADISON strive for efficiency and quality. The labels on our garments are printed on a satin finished polyester ribbon for a smooth and cool touch against our customer’s
55
MARKETING
PRODUCT LAUNCH A celebration of our customer, the launch party will be sure to attract interested industry peers.
The MADISON product launch will
the windy city. Features of the space
keep a clean and minimal aesthetic
include a 40 foot projection wall which
with a touch of urban femininity. We
we will be utilizing to display the
invite our guests to see the woman we
look-book for the MADISON Fall/Winter
envision and welcome the customer
2014-2015 collection. Underground
to become the woman she wishes to
features an elevated DJ booth in which
be, a powerful and professional young
we will be hosting the talented London
woman on the go trying to reach her
band Goldfrapp, whose music has been
dreams and look dressed to kill at all
featured in GAP campaign ads as well
times.
as Showtime original series such as Queer As Folk and The L Word. The
Our guests will arrive at The
Underground venue offers specialized
Underground Venue, in the heart
beverage mixology as well as a variety
of downtown Chicago’s River North
of Champagne selections. MADISON
community at Dearborn and Illinois
would like to take full advantage of
Streets. We find this area to be
this and offer our guest special drinks
ideal for our guests to understand
such as “MADISON on the rocks” which
the MADISON woman: where she
will include a blend of St. Germain,
lives and what she does in her spare
Champagne, club soda, with a lemon
time. The Underground is located
twist. Special cocktails such as
in close proximity to the restaurant
these will add to the appeal and the
district and local bars that cater to a
ideology of the MADISON woman, a
MADISON woman’s state of mind. The
powerful presence with a feminine
Underground is a newly renovated
touch and an urban twist. Catering
space that is allotted to comfortably
will be provided by the in house sister
accommodate up to 425 guests. The
venue of Underground, Sunda. The
venue is very modern and urban, much
staff will be dressed in all black,
like the headquarters of MADISON in
formal attire to blend with the sleek Opposite Page Goldfrapp on her new album cover “Tales of Us.”
56
“ Our customer is intelligent, sophisticated, and conscious of corporate-social responsibility. ”
“ We invite our guests to see the woman we envision. ”
57
MARKETING
“ We want to insure that the MADISON lifestyle is featured in ever aspect of the launch party. ” MADISON aesthetic. Underground will
projected virtually for guests to get
provide votive candles at all tables
a glimpse of next seasons garments,
and bar areas to set the ambiance
look, and concept. Goldfrapp will
of the event. The venue staff will
be our featured DJ throughout the
serve our guests drinks to allow for a
night featuring local bands in her
completely enjoyable experience with
set. We want to ensure that the
as little effort on our guests part as
MADISON lifestyle is featured in every
possible. Seating is limited within the
aspect of the launch party: from the
venue due to the runway and stage
neighborhood, drinks, and the music.
layout, thus creating an intimate
Our customer’s life is the reason for
atmosphere. This will allow MADISON
celebration and we want our guests to
executives to have a less formal
leave our event loving the MADISON
networking opportunity with industry
woman and wanting to know more
executives and press in a venue which
about her.
has been named one of the “sexiest places on earth” by Cosmopolitan
The highlight of the night will be the
magazine. We feel that it fits the
fashion show. Goldfrapp will begin
mood and concept behind MADISON as
with singing her song “ Ride a White
a brand.
Horse” to set the mood and energy. Following the show, the founders
MADISON guests will enter the launch
will enter and thank everyone for
party to models wearing select
attending. The night will come to
garments from the first MADISON
a close around 12am where models
collection. Models will serve as
will hand out gift bags to guests as
entertainment and will maintain
they exit. The gift bags will include
the energy throughout the event.
a card with MADISON information and
Throughout the venue, images from
website, a thank you note, discount
the MADISON look-book will be
code, and a look-book of the entire Opposite Page The Underground - the location of MADISON’s launch party.
58
collection for Fall/Winter 2014-2015.
be compensating Goldfrapp for her
Pricing for the venue is $5000 for
services, which will cost an additional
the night. All extra features such as
$46,000. Models will be sourced
access to projection screen, candles,
locally from neighboring college SAIC
drinks, and lighting are included in
to offer students the opportunity for
this price.
networking and to build a fostering relationship with the acclaimed design
Goldfrapp and five members with
school. Models will be compensated
manager’s first class flight from
$300 each, allotting room for 5
London on September 5-7, 2014 will
models. This gives us a total of $1500
total $29,910. They will depart
for models. Our complete estimate
London Heathrow at 11:50 a.m. on
for the launch party brings us to a
September 5, 2014. We will also
grand total of $82,410.
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60
CONCLUSION
Given the data provided in the previous research, we feel that we are equipped to proceed in the creation of women’s ready to wear for a market that is on the rise and will be the leaders of tomorrow from all ranges of corporate, diplomatic, and artistic industries. By empowering our customers to build a wardrobe on clean and modern pieces they gain full control of their individual look without compromising her professional demeanor.
By focusing on innovative applications of quality materials, we will build a brand that has a high growth potential as well as customer retention. Integrating seamlessly into our customers’ lifestyle and professional persona, our brand will become synonymous with innovative luxury and a commitment to excellence. This presence in our growing market will give us the opportunity to expand throughout metropolitan United States areas as well as possible international growth both in brick and mortar and online. Madison invites you to become the woman you were born to be.
61
AP P E ND I X
APPENDIX 1. Apparel Growth
Marketline
Marketline
2. Market Segmentation
Marketline
62
Marketline
3. Market Forecast Outlook
Marketline
Marketline
63
AP P E ND I X
4. Competitors
Marketline
Marketline
Marketline
64
Marketline
Marketline
Marketline
Marketline
65
AP P E ND I X
Marketline
5. Market Analysis After a period of steady growth, the
reach respective values of $229,946.2
US womenswear market experienced
million and $157,106.1 million in 2012.
accelerated growth in 2011 and 2012 by 3% and 3.4% respectively. This trend
Sales generated through clothing,
is expected to continue through to
footwear, sportswear & accessories
the end of the forecast period with
retailers are expected to be the most
the annual growth rate gradually
lucrative for the US womenswear
increasing to reach 3.6% in 2017.
market in 2012, with total revenues of $119,310 million, equivalent to 68.2%
The US womenswear market is
of the market’s overall value. In
expected to generate total revenue
comparison, sales through department
of $174,963.3 million in 2012,
stores will generate revenues of
representing a compound annual
$33,359.9 million in 2012, equating
growth rate (CAGR) of 2.4% between
to 19.1% of the market’s aggregate
2008 and 2012. In comparison, the
revenues.
European and Asia-Pacific markets will
66
grow with CAGRs of 1.1% and 1.8%
The performance of the market
respectively, over the same period, to
is forecast to accelerate, with an
anticipated CAGR of 3.3% for the
and Asia-Pacific markets will grow with
five-year period 2012 - 2017, which
CAGRs of 2.6% and 4.4% respectively,
is expected to drive the market to a
over the same period, to reach
value of $206,274.9 million by the end
respective values of $261,371.5 million
of 2017. Comparatively, the European
and $194,987.9 million in 2017.
Marketline report Womenswear in the United States
Marketline
6. Geography Segmentation
Marketline
67
AP P E ND I X
Marketline
7. Market Distribution
Marketline
Marketline
68
7.1 Market Value Forecast
Marketline
Marketline
8. Competitive Landscape The womenswear market will be analyzed taking clothing retailers as
The US womenswear market is fairly
players. The key buyers will be taken
fragmented and this, combined with
as individual consumers, and clothing
slow growth in recent years has
manufacturing or wholesalers as the
resulted in an increased level of
key suppliers.
rivalry.
69
AP P E ND I X
market is substantial, the loyalty of Clothing is an essential item, with
consumers to specific brands is not
consumer choice being influenced by
always the overriding factor in their
factors such as fashion and a desire to
decision making.
signal social status. Demand patterns are susceptible to branding and
Buyer power is enhanced by a high
advertising, which, despite the lack
level of choice, which is generated by
of significant switching costs, tends
the absence of switching costs. Brand
to weaken buyer power. Individual
loyalty within the womenswear market
buyers’ demands change at a fast
is connected more with the particular
pace, meaning that, in an attempt
designer than the retailer, although
to maintain market share in a highly
some labels also have their own retail
competitive market, players aim to
operations. Branding may be irrelevant
attract customers by creating strong
in poorer regions, with the basic
brand consciousness and running
necessity of functional clothing being
intensive marketing campaigns.
the main concern. In more affluent areas, however, clothes are perceived
Low barriers to entry and relatively
as intimately linked to lifestyle
low requirements for capital mean
and social status, which grants
there is a high likelihood of new
retailers the opportunity to influence
entrants in this market.
consumer behavior. There is a large market for nondesigner womenswear,
Substitutes to womenswear retail
especially among customers with lower
include bespoke tailoring, factory
disposable incomes.
shops, homemade clothing and second hand clothing, although these pose a
Retailers can differentiate themselves
minimal threat to market players.
quite strongly through the styles of clothing offered. This weakens buyer
Buyer power is weakened by the small
power.
size of buyers: virtually all buyers are
70
individual consumers. Generally, all
Buyers are significantly exposed to
retailers have large numbers of
the penetration of marking icons and
individual customers. Despite the
images into most forms of media,
fact that brand consciousness in this
while retailers must remain aware of
the developments that shape public perception and subsequent demand.
Although retailers’ switching costs are
However, consumers lack financial
not very high, switching includes the
muscle.
risk of choosing a supplier with a more extended supply chain or whom it may
The position of retailers at the end of
not be possible to cope with sudden
the value chain makes it impossible
changes in demand on the market. The
to integrate forwards. This means
lack of diversity between suppliers
that they are obliged to offer buyers
weakens their power. This makes the
what they demand, in a market often
womenswear retail market highly
subject to unpredictable and rapid
important to their business.
changes in fashion. These factors strengthen buyer power.
Apparel manufacturing is almost always labor intensive, due to the
Overall, buyer power is assessed as
difficulty of automating processes
moderate.
such as the sewing of garments. The existence of a minimum wage in many
The key suppliers in this market
countries slightly increases the power
are clothing manufacturers and
of suppliers of labor.
wholesalers. These are typically small to medium sized enterprises, giving
Overall, supplier power in this market
retailers the possibility to source
is assessed as weak.
from both. In most countries, the wholesale and clothing manufacturing
The US womenswear market has
sectors are fairly fragmented. Supplier
experienced steady growth in value
fragmentation is made greater by the
in recent years, making the market
ability of retailers in a given country
attractive to new entrants.
to source from foreign manufacturers. Barriers to entry are not high, with With the liberalization of international
capital requirements being low enough
trade, supplier power in the US market
for individuals to enter. However, a
is decreased through competition from
small amount of large corporations,
manufacturers in low-wage regions,
such as Gap and TJX companies,
most notably China and India.
account for a major share of total
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AP P E ND I X
market revenues.
now have their own online stores as there is an increased consumer
They benefit from scale economies
acceptance of the internet as an
that allow them to build brands in
alternative shopping channel.
multiple retail outlets, and greater buying power when negotiating with
A growing number of ‘pureplay’ online
suppliers. The latter allows them to
fashion stores have emerged in the
compete more intensely on price.
market, as they look to take advantage of lower running costs from not having
There is little regulation as such for
to pay for the overheads incurred
retailers in the market, but there are
by running a high street store. The
some self-imposed conventions, mainly
online sale avenue opens the door for
in developed countries, to do with
manufacturers who may be tempted
child labor, working conditions and
by the opportunity of selling directly
worker’s wages. New entrants who are
to end users without the need for the
known to have items manufactured in
retailer.
this way may lose customers. Home-made and custom-made Low switching costs for buyers and a
(couture) clothing are also niche
low level of product differentiation
alternatives to the retail of ready-
make it easier for new entrants to
made clothes. Counterfeit clothing can
compete with existing players.
be a significant threat to revenues of manufacturers in some countries.
Overall, there is a strong likelihood of new entrants to this market.
Another option is purchasing secondhand clothing from charity shops and
While there are no substitutes for
internet sites such as eBay.
womenswear as such, there are alternatives to retail. One option
However, the threat of substitutes
is purchasing clothing directly from
to womenswear retail is assessed as
the manufacturer as opposed to the
moderate overall.
conventional distribution chain. This
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is facilitated by the growth of online
The womenswear market is fairly
sales. All major womenswear retailers
fragmented and is typically composed
of large numbers of similar retailers,
While some retailers selling
many of which are independents.
womenswear have diversified into,
However there is still room for large
for example, jewelry, menswear and
numbers of smaller players in this
childrenswear, many retain a strong
market. Major increases in capacity
emphasis on womenswear specifically,
may be fairly costly to smaller
which intensifies rivalry.
players, if they require the outlay of opening additional outlets, less so if
A fast pace of change in fashions in
they can be accomplished by taking on
the womenswear’s market does little
more staff on a flexible basis.
to ameliorate rivalry, due to moderate
Marketline
market performance in recent years.
9. Sales Trends
The Freedonia Group, Inc.
73
AP P E ND I X
10. US Women’s Retail Clothing Sales ($99 billion)
Other 28%
Tops 37%
s & 3% te ar 1 a im we Int eep Sl Bottoms 22% The Freedonia Group, Inc.
11. US Women’s Retail Clothing Sales by Outlet ($99 billion)
Other 23%
Specialty Stores 36%
Mass Merchants 15% Department Stores 36%
The Freedonia Group, Inc.
74
12. US Women’s Retail Clothing MARKETING TRENDS
Another demographic that presents
Given that the apparel market is
significant opportunities for clothing
mature with minimal annual gains,
retailers is the plus-sized market. As
retailers have sought to expand their
the percentage of US women that are
revenues by capturing a greater share
overweight has continued to rise, so
of overall sales through an assortment
too has the market penetration of
of marketing strategies. Catering to
plus-sized clothing. There is particular
the desires of different age groups has
interest among consumers in plus-sized
proven successful among all outlets,
apparel that is more fashionable, and
with specialty stores in particular
retailers are attempting to cater to
having a strong focus on the 18- to
this growing market by broadening
34-year-old demographic. Women
their current product lines and
of this age tend to have a greater
introducing new collections. For
interest in fashion and are willing to
instance, in 2011, Limited Stores
spend more money on clothes than
launched its new plus-size line
other demographics. Specialty stores
ELOQUII BY THE LIMITED. The brand
have also branched out into the baby
was initially only available online and
boomer segment, launching new
targets professional 25- to 34-year-old
outlets catering to this demographic
women.
as well as clothing lines specifically designed for women over the age of
One of the biggest hurdles faced by
50. However, the performance of baby
plus-sized retailers is providing
boomeroriented stores and clothing
customers with the right fit given
lines has often been disappointing as
the variances that occur in fat
retailers struggle to find a balance
accumulation. In 2011, Charming
between clothing that appears both
Shoppes (the parent company of such
fashionable and age-appropriate,
plus-sized retailers as Lane Bryant,
without alienating existing consumers.
Catherines, and Fashion Bug) sought
75
AP P E ND I X
to make online shopping for plus-sized
Wal-Mart has recently returned its
women easier through the launch of
perspective back to basics after
FASHION GENIUS, a tool that attempts
several failed endeavors aimed at
to correctly fit women based on their
attracting fashion-conscious shoppers.
answers to a short survey. Women
Wal-Mart attempted to lure women
shopping for a top, for instance, are
away from Target with “cheap
asked where they carry most of their
and chic” brands such as METRO
weight and what actions they take to
7. However, this brand was later
accommodate their belly.
discontinued when the company’s focus on fashion alienated some of its
In the department store and mass
regular customers and failed to attract
merchant sectors, one of the most
significant numbers of new shoppers.
apparent trends in recent years
In 2011, Wal-Mart announced it would
has been the influx of low cost
be closing its Manhattan fashion
designeraffiliated labels. For example,
office, which it had opened in 2009 to
the repositioning of Target as a go-
keep more abreast of changing fashion
to outlet for affordable fashion has
trends.
been largely due to this retailer’s
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designer series of clothes; first the
Other recent partnerships with
ISAAC MIZRAHI line, then the GO
designers and high-end labels included
INTERNATIONAL brand fronted by a
Kohl’s DANA BUCHMAN line, which
changing line of designers, followed
was launched in February 2009.
by additional designer collaborations.
Kohl’s acquired the DANA BUCHMAN
The popularity of Target’s designer
trademark from Liz Claiborne in
collections was highlighted by the
October 2011. Not to be outdone, J.C.
enormous interest that surrounded the
Penney became the exclusive licensee
September 2011 launch of MISSONI FOR
of Liz Claiborne’s CLAIBORNE branded
TARGET.
products in 2010 and went on to fully
acquire the LIZ CLAIBORNE family of brands in November 2011. Following
Notably, the company significantly
these divestments, Liz Claiborne will
reduced the number of sales
change its name to Fifth & Pacific in
conducted at its retail stores in favor
May 2012. In January 2012, J.C.
of “everyday low prices”. The company
Penney announced a series of
also rounded its prices, charging $15
transformation plans that included
rather than $14.99, and introduced
changes to pricing and promotion.
a new logo and a new spokeswoman,
The Freedonia Group, Inc.
13. US Women’s Retail Clothing Sales by Type
77
B I B L I O GR APH Y
BIBLIOGRAPHY
Apparel Retail in the United States. Publication no. 0072-2005. N.p.: n.p., 2013. Marketline Industry Profile. Informa Business. Web. 21 Jan. 2014. Womenswear in the United States. Rep. no. 0072-2278. N.p.: n.p., 2012. Marketline Industry Profile. Informa Business. Web. 21 Jan. 2014. Womens Retail Clothing: United States. Rep. N.p.: Freedonia Focus Reports, n.d. Freedonia. Web. 21 Jan. 2014. “ZIPskinny - Get the Skinny on That ZIP (demographics by ZIP Code).” ZIPskinny Get the Skinny on That ZIP (demographics by ZIP Code). N.p., n.d. Web. 02 Mar. 2014 “USA.com : Location Information of the United States.” USA.com : Location Information of the United States. N.p., n.d. Web. 27 Feb. 2014 “The Age Gap.” Nielsen. N.p., n.d. Web. 02 Mar. 2014. “Population of Middlesex County, Massachusetts:Census 2010 and 2000 Interactive Map, Demographics, Statistics, Graphs, Quick Facts.” Population of Middlesex County, MA. N.p., n.d. Web. 02 Mar. 2014
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MADISON