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