6
Month
Buying
Plan
Fall
2015
Outerwear
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Table of Contents Company Profile......................6 Competitive Marketplace Analysis.....23 6 Month Buying Plan..................58
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MISSION STATeMENT
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Topshop aims to provide their cool girl customer with anything from stylized basics to cutting edge designs. Topshop creates a fresh and exciting enviroment that allows for their customer to evolve with the current runway trends. Topshop prides themselves on providing easy accessibility of products and versatility in design. Through the use of strong visual merchandising and trend management, they create a fashion mecca for the urban customer.
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brand identity unique urban versatile fresh edgy
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british aesthetic Topshop started out with a british aesthetic, the brand has developed with a unique edge to give more interest to customers worldwide.
trend managers While the brand is not considered fast fashion, Topshop aims to turn inventory at a rapid rate and stay up to date on current runway trends.
visual presentation Topshop creates award winning visuals that attract the eye of customers and window shoppers around the world.
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scope and size
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merchandising venues Brick and Mortar total: 440
E-commerce total: 1 + nordstom.com
Wholesale Nordstrom total: 52
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nine u.s. stores
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NY 5th Avenue NY Soho Atlanta Houston Las Vegas Chicago Washington DC San Diego Los Angeles
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advertising activities Magazine Ads Catalog Lookbooks Facebook Twitter Tumblr Instagram Blog
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Target customer
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Demographics Age: 18-35 Gender: Female & Male Occupation: Creative Field Location: Urban Setting Income: 10,000- 100,000
Psychographics Achievers: goal oriented, deeply committed to career and family Experiencers: self-motivated, enthusiastic, implusive, fashion forward, budget conscience
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Ivy Rowe Age: 20 years old Gender: Female Occupation: Student with Internship Location: San Diego, CA Income: $11,000 Relationship Status: Single Ivy road trips with friends to see her favorite DJ’s and the electronic music scene. She indulges in a variety of food trucks that San Diego has to offer. She walks the streets looking for street style that inspires her personal fashion blog. Ivey updates her blog frequently with the latest trends and her recent shopping finds.
Nolan Parker Age: 27 Gender: Male Occupation: Producer Location: Atlanta, GA Income: $50,000 Relationship Status: Engaged Nolan works as a producer and enjoys watching black and white films. After work, he goes on the hunt to find the newest brew in town. He keeps his schedule busy; when Nolan is not attending a film screening, he can be found searching the racks of vintage shops. 20
Victoria Shillings Age: 33 Gender: Female Occupation: Graphic Designer Location: NY,NY Income: $100,000 Relationship Status: Married After work, Victoria attends pilates down the street from her son’s school. She meets up with her husband for dinner at Sugar and Plum in New York City. On the weekends the family supports local artists and visits museums. Victoria frequently hosts Sex and the City marathons for her friends including wine and cheese.
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m o
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i t
o t
s r
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a r
Za
Zara is one of the leading retailers with a strong customer base in the Spanish community. Being a trend manager, Zara is a key competitor for Topshop.
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H&M
H&M is the leading apparel retailer in the fashion industry. The company has very high profits and success in trend managing. Their recent innovations and collaborations directly compete with Topshop’s ventures.
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y t s
Na
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l a G
Nasty Gal has a high accessibility due to online retailing giving their customer ease and convenience. Because of Nasty Gal’s easy accessibility, they are a direct competitor to Topshop’s e-commerce sales.
ASO
S
ASOS is an e-commerce industry leader. They are trend managers with a wide range of products and high accessibility due to their online outlet. ASOS’s wide variety of products competes with all aspects of the Topshop brand.
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Nordstrom Nordstrom carries Topshop in most of their stores. This creates easy temptation for Topshop’s customer to wander into other designers sections within the store.
Blo
omi
ngD
ale
s
Bloomingdales has a wide selection of womens’ apparrel that is both trendy and high quality. Their quality of products stands to compete with Topshop’s higher end designs.
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Saks 5th Ave
Sak’s New York flagship store is right next to Topshop’s New York store creating competition through their location. Customers who shop at Topshop are also prone to visit Saks 5th Avenue when shopping for merchandise.
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Swot Anal y
sis
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Strength Range of Products and Prices High Social Media Presence Broad Range of Customers Show at London Fashion Week Celebrity/Designer Collaborations Trend Management Award Winning Visuals
Opportunity Push for more Celebrity and Designer Collaborations Growth in America and Nordstroms
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Weakness Weak Customer Service Global Company but in Few Countries Worldwide Limited Range of Sizes From Away Takes Accessibility Exclusity
Threats Targeted by Fast Fashion Economic Downturn Competitor Expansion Currency Transfer From Pounds to US Dollars
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Oute rwea Tren r ds Fall 2 01 5
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e l b
a n
o i h
s a
F Fu n
ct
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na
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Severe winters in North America have created a rise in demand for outerwear. But, outerwear is no longer just about function. Consumers want long lasting outerwear that is both fashionable and functional. They want to feel like they are investing in a piece that is trendy but still provides warmth and comfort. It is important for Topshop to carry styles that stay true to the trends of the times.
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Outerwear has become a global trend. Because of society’s recent fascination with a traveling lifestyle, there has become a higher demand for outerwear. Airport conditions cause people to need jackets, sweaters, etc. to keep warm. People living in warmer climate areas, who are not normally inclined to buy outerwear, are also starting to invest in outerwear pieces for their traveling needs. For this reason, Topshop will locate outerwear in all their stores, making it accessible to all their customers.
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Tex tile tre nds Fal l20 15
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embroidery
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ng i fr
e
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fur sleeves 47
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e d
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silhouette trends 50
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d e p p r o Cr be m o b
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knee length puffers 54
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Capes
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six month buying plan
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OUterwear Fall 2 015 Planned Net Sales, Fall 2015
6,700.0
Est. Net Sales, Fall 2014
5,508.0
Plan % Last Year
21.64%
Average Stock, Retail
3,525.3
Inventory Turnover
1.90
Planned Reductions, $
1072.0
Reductions % Sales
16.00%
Plan IMU%
60.34%
Topshop plans to sell $6,700,000 worth of outerwear inventory. Women’s Fall 2015 Outerwear for Topshop will turn inventory slower than our normal rate because the demand for outerwear is less than our other product categories. Topshop will markup up our outerwear 60.34% to gain profits and cover our visual merchandising and advertising expenses. Because of back to school season, Topshop plans to sell most our inventory at full price. We will have minor reductions, in the early months of August and September. Topshop is a trend manager meaning they need to clear inventory fast. We plan to markdown products in November and December so that we can prepare for the coming seasons. 60
Corporate Buying Plan
August September October November
December January
Fall 2015
Net Sales
1072.0 1139.0
1072.0
1139.0
1340.0
938.0
6700.0
% Fall
16.00% 17.00%
16.00%
17.00%
20.00%
14.00%
100.00%
Plan BOM Stock
3537.6 3758.7
3644.8
3644.8
3752.0
3189.2
3525.3
3.4
3.2
2.8
3.4
Stock/ 3.3 Sales Ratio
3.3
Plan EOM Stock
3758.7 3644.8
3644.8
3752.0
3189.2
3150.0
Plan Reductions
85.8
160.8
160.8
235.8
268.0
160.8
1072.0
% Fall
8.00%
15.00%
15.00%
22.00%
25.00%
15.00%
100.00%
Purchases, Retail
1378.9 1185.9
1232.8
1482.0
1045.2
1059.6
7384.4
Purchases, Cost
551.5
493.1
592.8
418.1
423.8
2953.8
474.4
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Atlanta 6 Month Buying Plan Inventory Turnover: 1.94 Topshop plans sales for their Atlanta store to be $700,000. Atlanta sales are higher than the average sales of a Topshop store because it is in a high volume city and it is a fairly new store. Due to their high net sales, Topshop Atlanta will turn inventory faster than average at a rate of 1.94. Because of the weather in Atlanta, Topshop plans for their sales to be lower in August and higher in January, than the corporate plan.
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August September October November
December January
Fall 2015
Net Sales
98.0
% Fall Plan BOM Stock
119.0
112.0
119.0
140.0
112.0
700.0
14.00% 17.00%
16.00%
17.00%
20.00%
16.00%
100.00%
333.2
368.9
369.6
380.8
392.0
347.2
361.7
Stock/ 3.4 Sales Ratio
3.1
3.3
3.2
2.8
3.1
Plan EOM Stock
368.9
369.6
380.8
392.0
347.2
340.0
Plan Reductions
9.0
16.8
16.8
24.6
28.0
16.8
112.0
% Fall
8.00%
15.00%
15.00%
22.00%
25.00%
15.00%
100.00%
Purchases, Retail
142.7
136.5
140.0
154.8
123.2
121.6
818.8
Purchases, Cost
57.1
54.6
56.0
61.9
49.3
48.6
327.5
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5th Ave 6 Month Buying Plan Inventory Turnover: 2.37 Topshop plans sales for 5th Avenue to be 4 times the average store’s sales due to the flagships store’s flow of foot traffic in one of the fashion meccas of the world. Because of Topshop New York’s high volume and demand for new products, Topshop plans to turn inventory 2.37 times. Other than the turnover rate and net sales, Topshop 5th Avenue plans to stay in line with the corporate plan.
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August September October November
December January
Fall 2015
Net Sales
240.0
% Fall Plan BOM Stock
255.0
240.0
255.0
300.0
210.0
1500.0
16.00% 17.00%
16.00%
17.00%
20.00%
14.00%
100.00%
648.0
663.0
648.0
663.0
690.0
567.0
634.1
Stock/ 2.7 Sales Ratio
2.6
2.7
2.6
2.3
2.7
Plan EOM Stock
663.0
648.0
663.0
690.0
567.0
560.0
Plan Reductions
19.2
36.0
36.0
52.8
60.0
36.0
240.0
% Fall
8.00%
15.00%
15.00%
22.00%
25.00%
15.00%
100.00%
Purchases, Retail
274.2
276.0
291.0
334.8
237.0
239.0
1652.0
Purchases, Cost
109.7
110.4
116.4
133.9
94.8
95.6
660.8
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Assortment Plans Sizes
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Purchases
XS
12%
$886,128
S
26%
$1,919,944
M
28%
$2,067,632
L
22%
$1,624,568
XL
12%
$886,128
Total
100%
$7,384,400
Style
Purchases
Wool
20%
$1,476,880
Leather
18%
$1,329,192
Bomber
17%
$1,255,348
Puffer
14%
$1,033,816
Fur
11%
$812,284
Fringe
10%
$738,440
Capes
10%
$738,440
Total
100%
$7,384,400
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OpportunitY
The Topshop Fall 2015 Outerwear collection has been planned with opportunities in mind. The 6 Month Buying Plan has stayed true to the brand and the idea of trend management. With the trend of outerwear becoming not only functional but also fashionable, Topshop sees room for growth in this product category.
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