Supreme: Brand Expansion Project

Brand Expansion:

PART 4.

By Dorothy Dai & Leah Jeon LXFM 745 OL PROF. DONG YANG

Presentation Highlights

Company Overview Geographical Expansion Target Customer Trading Area Analysis Store Design Communication & Promotional Plan Financial Plan Executive Summary BRAND EXTENSION | SUPREME

Company Overview

Current Status

Supreme is a streetwear brand that started as a skateboarding shop in New York City in April of 1994. The brand produces clothing centered around their ‘red box logo’ which is shockingly simple, has transcended its skateboarding roots, and is fueled by the brands ability to create desire. Over its twenty-six plus year history, Supreme has worked with some of our generation's most groundbreaking designers, artists, photographers and musicians all who have helped continue to define its unique identity and attitude. Supreme is the definition of Streetwear and in many ways is the force that continues to bless the streetwear world and carry it into the next generation. There will never be another Supreme.

All products are super limited and sell out quickly.

Founded in 1994 Founder/CEO James Jebbia Headquarters in New York City, New York, United States Number of locations is only 12 Products include clothing, shoes, accessories, skateboards and etc Total equity is US $1 billion (in 2017) Supreme is under The Carlyle Group (50%)

Geographical Expansion

China is the biggest fashion market in 2019 Currently, it is continuing to expand at an exponential rate. With the rapid urbanization and the increasing spending power of the population, high-tier and low-tier clothing markets are rapidly growing.

Why Supreme Chooses China

Streetwear brands in the spotlight According to Hypebeast's 2019 Streetwear Impact Report, the Asian respondents reported spending five times more on streetwear per month than on non-streetwear. NonChinese brands are reaping the benefits of the Chinese streetwear movement, too.

Increase brand awareness Expansion of Supreme in China would give the company a competitive advantage over global market competitors.

Many streetwear brands are already operating in China.

Therefore, moving into China could enable the company to increase brand awareness and stay ahead of the competition.

Target Conusmer

Our Targets Demographic

Psychographic

Behavioral

Gender: All genders

Into urban music and hip-

Heavy focus on social

Annual Income: $ 100,000

Into domestic artists

QQ, and Tik-Tok

Age: 18-35

Education level doesn't matter

Race: Asian

Nationality: Chinese Single or married

hop music

include of Kris Wu, Team Wang and Higher

Brothers, and foreign

singers like Cardi B and Kanye West

Loyal to Supreme

Love skateboard culture Street fashion lovers Love friends

media such as Wechat, Omnichannel shoppers:

going both offline stores and online

They know how to buy

limited items via online and offline

They share the

information about street fashion items in their community

Trading Area Analysis Changle Road, Shanghai, China

Changle Road, Shanghai, China

Changle Road is one of Shanghai's trendy areas and is known as a Harajuku (or trendy area)in Shanghai. It is also a trendy gathering place offering entertainment, catering, and shopping frequented by young people. Changle Road has kept the maple trees and small buildings representative of old Shanghai and joined with mainly shop boutiques and buyers retail formats to create a trendy new area; according to the real estate consultancy firm meaning of statistics, at present60% of shops in the neighborhood are restaurants and bars, 40% are retail stores, including fashion, design, and creative class stores. Jiemian Magazines showcase the fashionable things stars like Chen Guanxi and Fujihara are wearing, and they can be seen walking and shopping in Changle Road. NPC, JUICE, SSUR, MU821 and other fashion stores are all concentrated in this area.

Store Design

Floor Plan

Exterior

Interior

Store Ambience Lighting Mix of natural light and LED pin lights Sound Hip-hop music Smell Clean smell of fresh air Taste Non-merchandise related service in line with special events Touch Mix of wooden fixtures and metal furniture

Communication & Promotion Plan

Communication Mix

Promotion Timeline

Across Multiple Media

1.1 billion highly active users biggest social app in China All-in-One [Contact, Share(Moments), Service(Official account, private account),Promotion(Moments Ads, H5, Mini program), Payment (Wechat pay, QR code]

Official Account: Remind the subscriber which store the new products will be sold this week and new collaboration. If the subscriber receives the message, he can go directly to the number and queue up.

Internal information is pushed to select or specific users(loyal consumers, KOL in street culture). Customers will expect to be one of them to share the latest news on social media.

：

Official Account

Mini Program

PRE-LAUNCH LAUNCH POST-LAUNCH

Mini program Preview, Lookbook (provide customers with an up-to-date view of the latest collection of items and details to satisfy consumer’s curiosity about the product) Shop(WeChat Pay)

516 million Weibo

monthly active users second most popular social media platform

，

，

Research Share Follow Spot In-feed Link

，

，Hot-

Official Account: push new products publicize street culture Work with Chinese street skaters and hip-hop artists to upload pictures or vlogs Create "Supreme" hashtag

PRE-LAUNCH

LAUNCH

POST-LAUNCH

600 million daily active users best-loved short-video sharing app Share

， Follow，Hot-Spot， In-feed Link

Official Account: "Supreme Video" (skateboarding shorts, hip-pop shorts) set up an online street culture community (Street enthusiasts, Skateboarders, hip-hop stars, artists...) to share their proud works by video

PRE-LAUNCH

LAUNCH

POST-LAUNCH

Outdoor Advertise Posters, Brand Stickers(near Supreme' s store,Subway station)

Graffiti (murals)

PRE-LAUNCH

LAUNCH

Opening Party Host a private party in-store Founder James, Artists, Videographer, CBA/NBA players, Hip-hop stars, Skateboarders...

Limited Edition Box logo T-shirt only available instore

Exclusive event ，

Host in-store specialty events invited supreme fans to buy products at the original price, solve the resale problem

LAUNCH

POST-LAUNCH

Influencer Marketing 小白

Weibo: @Fil , 5.21m followers / Brands she works with: Chanel, Louis Vuitton, Gucci, Offwhite Stella McCartney, SK-II, Nike, Adidas Tattooed street-style star and stylist Fil Xiaobai put her stamp on Chinese fashion.

“The public realises the pieces I wear are beautiful and practical for ordinary people.”

Weibo: @Mr_

凡先生, 51.25m followers / Brands he works with: Burberry, Bulgari, Mcdonal， LV,

Kris Wu, known in China as Wu Yifan, is a divisive figure. Today, he is an actor, hip-hop star and reality TV “producer” as the face of many fashion/luxury brands in China.

Weibo: @GAI

周延, 10.44m followers / Brands he works with: Huawei， Tmall

Zhou Yan, known as "GAI," is a rapper, singer, and songwriter. In 2017, GAI's music career began to boom after attending iQiyi's Hip-Hop reality show The Rap of China and winning the contest. And he is one of the main influences of local culture/ underground culture in China.

LAUNCH

POST-LAUNCH

Financial Plan

Sales Forecast

Assortment Plan

Numbers of Units Sold

Income Statement

Promotion 14.9%

Operation 23.3%

Logistics 4%

HR 57.8%

Expenses Break-down

HR Budget

Logistics Budget

Operating Budget

Promotional Budget

Sales Forecast 1-3 years Supreme Shanghai planned to earn $1.47 million in its first year.

Supreme planned to increase the revenue by 15% every year which will be $1.59 million in the second year and $1.94 million in the third year. Also Supreme hopes the COVID-19 will be better year by year affecting the in-store sales.

Executive Summary

The project is to the geographic expansion of Supreme to Shanghai, China. Chinese younger generations are eager to street fashion and Supreme can already secure potential customers in this area. Shanghai, which is well-mixed with the new and old culture, is also a city that embraces the changing culture and is filled with the passion of the younger generation. Supreme wants to open a new branch here with a plan to see positive opportunities for Chinese market advancement and further consideration of production in China.

Supreme tries to show its brand identity and communicate with Chinese customers in Shanghai.

Supreme's minimal red box logo and street fashion products will be introduced every Thursday just like any other Supreme store. Also, the design and atmosphere of the store will be the same as the existed Supreme store.Usually, Supreme is very limited in marketing, but when opening a Shanghai store, there will be active promotions of Chinese SNS (WeChat, Weibo, TikTok) and Chinese influencers. With these marketing and limited quantity marketing of Supreme, we will receive a lot of interest in the brand. As a result, Supreme Shanghai is expected to earn $1.47 million in revenue in the first year, followed by a 15% increase every year since then.

Opportunities Expand brand image to Chinese market Potential production in China Opening Supreme China Ecommerce Trying out new trends in China

Threats Trade war between USA and China Competitors: Chinese street fashion brands

Thank You

Refernces https://www.supremenewyork.com/index https://www.travelchinaguide.com/tourism/2019statistics/ https://www.google.com/search? biw=1163&bih=525&sxsrf=ALeKk014msTfSCUlQ1Y1x7gLiDKTDPxN4Q%3A1605356673890&ei=gcyvX8zdNa_YhwOU44WgBw&q =chinese+population&oq=chinese+population&gs_lcp=CgZwc3ktYWIQAzIFCAAQyQMyAggAMgIIADICCAAyAggAMgIIADICCA AyAggAMgIIADICCAA6BAgjECc6CAgAEMkDEJECOgUILhCRAjoCCC46BAgAEEM6BAguEEM6BQgAEJECOggILhDHARCjAjoHCC4QQ xCTAjoFCAAQywE6BQguEMsBUOnBliamQdg6ZoHaABwAHgAgAG1AYgBvxWSAQQwLjE4mAEAoAEBqgEHZ3dzLXdpesABAQ&sclient=psyab&ved=0ahUKEwiMoqPSg4LtAhUv7GEKHZRxAXQQ4dUDCA0&uact=5 https://wwd.com/business-news/retail/supreme-san-francisco-store-1203354855/ https://blogs.lse.ac.uk/impactofsocialsciences/2020/03/26/weibo-how-is-chinas-second-largest-social-mediaplatform-being-used-for-social-research/ https://www.statista.com/statistics/941456/china-number-of-sina-weibo-users/ https://www.businessoffashion.com/articles/china/chinas-celebrity-ambassador-minefield-kris-wu-fan-bingbing