Scotch& Soda // Six Month Buying Plan

A/W 15 SIX MONTH BUYING PLAN | CHILDREN’S WEAR

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table of contents Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07 Identity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08 Scope & Size. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Target Customer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Key Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Trends in Fashion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Lifestyle Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Corporate Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Specific Location Plan . . . . . . . . . . . . . . . . . . . . . . . . . 44 Assortment Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Statement of Opportunity . . . . . . . . . . . . . . . . . . . . . . 51

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T H I S I S A M S T ERD A M

At Scotch & Soda, we bring Amsterdam Couture to life.

Originating in the 1980s, Scotch & Soda re-launched in 2001 when three new owners joined our team. From that point on, Scotch & Soda has been steadily growing as a company. In a time where fast fashion is king, Scotch & Soda remains dedicated to providing quality garments that will last for seasons to come, all of which are produced ethically and without sacrificing factory working conditions. High quality fabrics and rich details inspired by cultures around the world come together in the form of vintage inspired basics, beautifully worn-in denim, and exquisitely tailored silhouettes. We are classic in many ways, yet aim to always bring a fresh perspective to the marketplace.

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AU TH E N TI C At Scotch & Soda, being authentic means staying true to our brand.

To stay young and progressive, our heritage brand incorporates current trends into our classic high-quality basics and denim. We stay authentic by keeping our pieces based on our original vintage styles, but continuing to be inspired by the world around us. Our company provides prints and graphics that are trendy and diverse, but still resemble Scotch & Soda as a vintage-inspired brand.

E F F ORTL E SS We as a company, strive to create garments that will suit every individual. Our silhouettes are uncomplicated and simple enough that our customers can take any piece from our collections and incorporate it into their everyday outfits. At Scotch & Soda, our customers can take our clothes and put an outfit together without having to think too much about what matches and what will be comfortable. We believe putting pieces together to create one’s look should be easy, but still stylish and contemporary.

E C L E C TI C Our brand started in Amsterdam and has quickly grown to be sold worldwide. We draw our inspiration for our designs from travel and the places our pieces are sold around the world. At Scotch & Soda, we fuse this diversity and our classic pieces by creating prints that are easy for mixing and matching. All of our garments are enriched with inspiration from around the world and rich in detail. Our classic denim and basic pieces are transformed into distinct garments through the use of various prints, interesting embellishments, and unique graphics.

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scope & size

After our re-launch in 2002, our company has continued to grow. Emerging from our original mens line, we branched out into our broad product categories we have today: Scotch Shrunk, Maison Scotch, Scotch R’Belle, Amsterdam Blauw, and Scotch Collectables.

Our Amsterdam-based company has expanded our roots to having 100 stores worldwide in 29 different countries, with 23 of those stores alone located in the United States. Our garments are readily available in 7,000 different stores and online sales points including Nordstrom, Bloomingdales, Saks 5th Avenue, Barneys New York, ASOS, REVOLVE Clothing, Pumpkin Heads, Zappos, Alex and Alexa, and many others.

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target customer

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Brooks

oliver, cassidy, & luca

The Brooks Family lives in Seattle, Washington. Oliver is a 32 years old and works as an architect and travels often for work and leisure. Cassidy, his wife, is a 31 year old small business owner who appreciates the arts and all things handcrafted. They have a 4 year old daughter named Luca. Their household income is between $160,000 to $200,000 annually.

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Solano

richie, augustin, jackson, & jacob

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The Solano Family lives in New York, New York. Richie is 36 years old and works as an advertising executive. He is married to Augustin who is 34 years old and works as a writer for a men’s fashion magazine. They both travel for work and leisure. They have 2 twin boys named Jacob and Jackson who are 6 years old. The Solanos enjoy taking trips to museums and art galleries. They have a household income of $190,000 to $210,000 annually.

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Loren

brody, cara, hanes, & ollie

The Loren Family lives in Austin Texas. Brody is 33 years old and is head of marketing at a large corporation. He is married to Cara, a 33 year old stay at home mom and well-known fashion blogger. They have 2 sons Hanes (5) and Ollie (1). The Lorens have strong values for family and like to travel often. They have a household income of $70,000 to $80,000 annually.

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STRATEGY

At Scotch & Soda, social media outlets are essential to the marketing of our products, and maintaining strong customer relationships. Instagram is a major communication outlet for us, and we have nearly 70k followers engaged. We share photos of new products, lookbooks, and inspirational photos. Another imporatant social media outlet for Scotch & Soda is YouTube. Fashion films are becoming increasingly improtant to the marketing of mid-level fashion retailers. We take pride in the production of the Scotch & Soda YouTube channel. On the Scotch & Soda Pinterest, we share lookbook photos, collection inspiration, and lifestyle snapshots. On Facebook, customers can get exclusive first looks at new products, and are encouraged to communicate with us.

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crew cuts Falling at a similar price point as Scotch & Soda childrenswear, Crew Cuts, or J. Crew’s childrenswear line, offers bright, stylish kids clothes with exciting patterns and cool graphic prints. Nice design details reminiscent of those within J. Crew’s adult line can be found throughout their childrenswear extension.

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ralph lauren kids

Ralph Lauren is know as an American heritage clothing brand in the same way that Scotch & Soda is considered an Amsterdam heritage brand. Ralph Lauren remains consistently preppy, while providing nice basics and trendy pieces alike. While the style of Ralph Lauren kids is slightly more polished than that of Scotch & Soda, they remain competitors within the department store realm, as both brands compete for floor space within Nordstroms, Bloomingdales, and Barney’s New York.

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levi straus kids

Scotch & Soda is established as a premium denim retailer. Levi’s is the most popular and well known denim retailers in America. Levi’s Kids provides an opportunity for the Scotch & Soda customer to find well made children’s denim, with a great reputation at a fraction of the price Scotch Kids Amsterdam Blauw price.

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lucky brand kids

Similar to Levis Kids, Lucky Brand Kids is dedicated to selling quality children’s denim.

Lucky Brand is also very much aligned with the aesthetic of Scotch & Soda. Customers who shop at Lucky Brand are also highly likely to shop at Scotch & Soda.

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zara kids

Scotch & Soda is dedicated to providing young families with stylish, quality clothing. Stylish young families are bound to shop at Zara. It’s trendy, and looks very expensive, despite having a really low price point. Customers looking for the mini-me type clothes, which Scotch & Soda Kids is known for, for their children will definitely look to Zara Kids to fulfill that need.

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key

trends

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sartorial kids The Sartorial Childrenswear trend takes its cues from street style and editorial fashion. A little bit vintage, but wholly forward thinking, Sartorial Childrenswear takes fringe trends in womenswear and menswear and shrinks them down. By refining the silhouettes from adult clothing, adding interesting art inspired details, and defying what is typically considered childrenswear, this trend sets a clear precedent for the trendiest of children.

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artisan The artisan megatrend takes its inspiration from the celebration of craftsmanship and authenticity. Emphasizing rustic, handspun details and raw textiles for a classicly Autumnal, bohemian feel. The artisan trend takes many cues from the past, and is heavily vintage inspired. Workwear meets intricate wovens and raw finishes, emphasizing a return to wholesome values and ethical practices.

Layering is key, as the aesthetic of this trend revolves the idea of collecting long lasting, quality pieces of clothing.

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indigo nomad Going almost hand in hand with the Artisan trend, Indigo Nomad emphasizes interesting details in denim. A combination of utility and intricate design details, the indigo nomad manages to make disheveled layers of homespun denim look polished. This childrenswear trend puts emphasis on outerwear. Unfinished hems, patchwork, unexpected layering, fabric manipulation, and bohemian style meets chic streetwear in this bold, blue hued trend.

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activewear The Activewear trend has been seen far and wide. From high fashion runways, to street style, to fast fashion everyone is interested in giving off the appearance of being fit and in tune with their bodies. Emphasis is put on performance knits, outfits that allow for a full range of mobility, and interesting sneakers. Within children’s wear, there is always a focus on making sure that clothing is durable and doesn’t constrict the child from being able to run and play. However, the activewear trend makes “play clothes” fashionable.

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family lifestyle & culture The American family, the values that that they emphasize, and their lifestyle habits are changing rapidly. There has been a shift toward education on the arts and social responsibility, and families with small children are traveling more.

The number of families with religious ties has been on the decline for years.

With an increasing number of less religious families, there is more expendable income, not designated to be donated to religious institutions, at family’s disposal.

In today’s market, families are more likely to educate their children on social issues, art, and music, rather than religious dogma.

In the past, parents were more inclined to shelter their children, and to travel extensively before having children. Families are more likely now to travel with children in tow, which allows for young children to be more culturally aware at a young age. Additionally, there has been an increasing number of young families moving away from big cities and into culturally rich locales with a low cost of living. Broader cultural awareness leads families to wanting a more diverse, eclectic shopping experience.

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Scotch & Soda Fall 2015 Focus Product Category: Children’s Wear (Boys & Girls)

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Planned Net Sales, Fall 2015

4000.0

Est. Net Sales, Fall 2014

3500.0

Plan % Last Year

14.29%

Average Stock, Retail

1926.9

Inventory Turnover

2.08

Planned Reductions, $

680.0

Reductions % Sales

17%

Plan IMU%

53%

(000’s)

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fall

2015 Corporate 6 Month Buying Plan

August Net Sales

September

October

560.0

720.0

640.0

% Fall

14.0%

18.0%

16.0%

Planned BOM Stock

1848.0

2088.0

1984.0

3.3

2.9

3.1

2088.0

1984.0

2088.0

81.6

102.0

102.0

12.0%

15.0%

15.0%

Purchases, Retail

881.6

718.0

846.0

Purchases, Cost

414.4

337.5

397.6

Stock/ Sales Ratio Plan EOM Stock Plan Reductions % Fall

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November

December

January

720.0

880.0

480.0

18.0%

22.0%

12.0%

2088.0

2200.0

1680.0

2.9

2.5

3.5

2200.00

1680.0

1600

136.0

156.4

102.0

20.0%

23.0%

15.0%

968.0

516.4

502.0

455.0

242.7

235.9

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Fall 2015 4000.0 100.0% 1926.0

680.0 100.0% 4432.0 2083.0

fall

2015 Washington, DC 6 Month Buying Plan

August Net Sales

September

October

28.0

36.00

32.0

14.0%

18.0%

16.0%

92.4

104.4

99.2

3.3

2.9

3.1

104.4

99.2

104.4

4.1

5.1

5.1

12.0%

15.0%

15.0%

Purchases, Retail

44.1

35.9

42.3

Purchases, Cost

20.7

16.9

19.9

% Fall Planned BOM Stock Stock/ Sales Ratio Plan EOM Stock Plan Reductions % Fall

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Planned Net Sales, Fall 2015

200.0

Est. Net Sales, Fall 2014

175.0

Plan % Last Year

14.29%

Average Stock, Retail

99.4

Inventory Turnover

2.01

Planned Reductions, $

34.0

Reductions % Sales

17%

Plan IMU%

55%

November

December

January

36.0

44.0

24.0

200.0

18.0%

22.0%

12.0%

100.0%

104.4

114.4

91.2

99.4

2.9

2.6

3.8

114.4

91.2

90.0

6.8

7.8

5.1

34.0

20.0%

23.0%

15.0%

100.0%

52.8

28.6

27.9

231.6

24.8

13.5

13.1

108.9

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Fall 2015

fall

2015 Venice (LA), CA 6 Month Buying Plan

August Net Sales

September

October

40.0

45.0

40.0

16.0%

18.0%

16.0%

116.0

121.5

116.0

2.9

2.7

2.9

121.5

116.0

119.0

5.1

6.4

6.4

12.0%

15.0%

15.0%

Purchases, Retail

50.6

45.9

49.4

Purchases, Cost

23.0

21.6

23.2

% Fall Planned BOM Stock Stock/ Sales Ratio Plan EOM Stock Plan Reductions % Fall

46

Planned Net Sales, Fall 2015

250.0

Est. Net Sales, Fall 2014

219.0

Plan % Last Year

14.16%

Average Stock, Retail

114.8

Inventory Turnover

2.18

Planned Reductions, $

42.5

Reductions % Sales

17%

Plan IMU%

55%

November

December

January

42.5

52.5

30.0

17.0%

21.0%

12.0%

119.0

126.0

102.0

2.8

2.4

3.4

126.0

102.0

103.0

8.5

9.8

6.4

20.0%

23.0%

15.0%

58.0

38.3

37.4

27.3

17.9

17.6

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Fall 2015 250.0 100.0% 114.8

42.5 100.0% 279.5 131.4

Boys (Scotch Shrunk) Total, %

43%

Total, $

$1,905,760

Total

Purchases, $

T-Shirts

13%

$247,749

Outerwear

15%

$285,846

Pants/ Shorts

17%

$323,979

Denim

21%

$400,210

Knitwear

20%

$381,152

Woven Shirts

11%

$209,634

3%

$57,173

100%

$1,905,760

Accessories Total

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Girls (R’Belle) Total, %

57%

Total, $

$2,526,240

Total

Purchases, $

T-Shirts

11%

$277,886.40

Outerwear

12%

$303,148.80

Pants

13%

$328,411.20

8%

$202,099.20

Knitwear

15%

$378,936

Denim

16%

$404,198.40

Woven Shirts

10%

$252,624

Dresses

10%

$252,624

5%

$126,312

100%

$2,526,240

Skirts/ Shorts

Accessories Total

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statement of opportunity At Scotch & Soda, we provide a broad product range for growing families interested in style and travel. Our childrenswear lines, Scotch Shrunk and R’Belle, fused trends from womenswear, menswear, and childrenswear, giving us a distinct position within the market. We believe that we have an opportunity to benefit from these families and continue to grow as a strong brand in childrenswear.

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PRODUCED BY JOSHA MCLEOD CELINE AQUINO KERRILYN GIBSON