Vince

To create iconic essentials that men and women would want to wear every day

Founded in 2002 by Christopher LaPolice and Rea Laccone First collection brought in $9.5 million Planned to grow $12 million in annual sales Sold to Kellwood Company in 2006 Menswear collections started in 2007

History

History Founders left the company in January 2013 Company went public Brendan Hoffman brought in October 2015 Founders recruited back in 2015 Vince products now sold in 2,400 distribution locations in over 40 countries

to create a cohesive and compelling product assortment with sophisticated head-to-toe looks for multiple wear occasions.

Values

To utilize luxe fabrications and innovative techniques to create a product assortment that combines urban utility and modern effortless style.

Sold at 2,400 distribution locations across 40 countries Corporate headquarters in New York Design studio in Los Angeles Operates 40 full-price retail stores, 14 outlet stores, vince.com Wholesale at Saks, Neimans, Nordstrom 565 employees

Size

Scope

Brendan L. Hoffman :

Chief Executive Officer David Stefko :

Executive Vice President, Chief

Financial Officer Mark Engebretson :

Executive Vice President, Operations Melissa Wallace :

Senior Vice President, Human Resources

Luxury products Known for luxe fabrications and innovative techniques Urban utility and modern effortless style Global lifestyle brand products for both men and women Apparel and accessories

Product

Product Categories

Accessories : $145 - $530 Shoes : $95 - $425 Handbags : $95 - $495 Apothecary : $12 - $62

Women’s Prices

Shirts & Tops : $195 - $345 Tees : $65 - $185 Sweaters : $145 - $795 Dress & Skirt : $245 - $1,195 Pants : $145 - $1,195 Jeans : $225 - $275 Jackets/Outerwear : $425 - $1,695.00

Millennial men and women target ages from 20-35 Appreciative of refined, luxurious quality Willing to splurge Mid - High disposable income

Customer Base

Top Sellers

Full priced stores and e-commerce : sales increase of 15.9% Total direct-to-consumer sales and company owned outlets : increase of 8.8% Strong sales momentum led to create a men’s collection in 2007 Expanded leather and outerwear offerings Launched a women’s handbag line in 2014

SALES

Sales

Decline in sales in 2016 Doubt of staying in business for a year longer Sales declined by 21.9% Net loss of $162.7 million compared to the previous income of $1.8 million

SALES

Sales Trends

Stock Trends

Clean, timeless aesthetic, sophisticated design, and superior quality.

Volume Drivers

New focus on products for lifestyle experience Strengthening relationship with Nordstrom and Neiman Marcus Patrik Ervell as the new menswear designer Improving quality and fit of clothing Relying too heavily on promotion

Key Factors

To eradicate slavery and human trafficking from our supply chain, we: Verify product supply chains Conduct independent audits of our suppliers Provide training for traffic prevention

Supply chain

Sales Trends

3 Key Competitors

Theory

Rag & Bone

Joie

“The explosion of sub-categories such as athleisure, which is predicted to reach $83 billion in global sales by 2020, highlights how retailers are evolving into lifestyle brands,� said Bezzant.

Product Trend

Marketing Trend Collaborations to bring in the maturing customer “The more mature contemporary customer has begun to show a growing interest in runway fashion,� Sakany said.

The showroom strategy Showroom style buying for brick and mortars can help solve the difficult problem of markdowns, and help retailers limit in-store inventory.

Technology Trend

The Total Market

Global Apparel Market

Total Sales: 200 billion 2013: 251 billion 2015: 359 billion

US Women’s Apparel Sales

Sales Value

Market Size & Growth

Leading Luxury Apparel Retailers

US Apparel Industry

Which sectors of the women’s apparel market are most significant?

Women’s Apparel Market

Women’s Apparel Market

Which sectors of the market is Vince focusing on in 2018?

Which market is right for Vince?

Demographic Segmentation

s

Quality Products Classic and Timeless Moderate Price Point Ethical and Sustainable Transparency Online stores, Wholesale, Physical Store Locations Wide Range of Categories

Expanding Design Products UX Across All Platforms Offer Plus Sizes Develop Store Experience

O

W Mainly Basics Average Social Media Response Low brand recognition Compared to Competitors Small Consumer Base After Crisis Not Much Variety

Supply and Demand Not Consistent Competing Brands Doing Similar Things Fast Fashion Brands Insufficient Floor Space

T

Planned Sales by Month Planned Sales Increase:

Planned sales of $71,621,680 is an 8.8% increase from last year. Our percent increase is from the statistic found stating that “Direct to Customer increased 8.8% by December 2017 (Q4)�. We believe there is this opportunity for growth indeed as the numbers have stated Vince is definitely in a period of a slow but steady increase, however that increase is within reason and not drastic.

IMU:

Our IMU is at 75% because we feel as if Vince as a brand is known for their high quality fabrics and construction, being that the percent is a bit higher than your average clothing retailer.

Reductions:

Our planned reduction dollars is $17,905,420. We came to this by multiplying our planned sales for the period and our reduction percent of 25%.

6 Month Buying Plan

6 Month Buying Plan Planned Purchases at Retail

Planned Purchases at Retail:

Finally, we came up with our entire budget for the six month buying plan by finding the sum of each month’s planned purchase at retail. Each months planned purchase at retail was found by subtracting the planned monthly EOM from the sales, BOM, and reduction dollars for each month. Our entire planned purchase at retail for the six month plan is $80,423,984.47.

Total: $80,423,984.47

Divided Budget

Sweaters: $56,296,789

Tees: $24,127,195

6 Month Buying Plan

Sleeve Length

Fabrics

Short Sleeves Budget: $7,238,158 (30% of total)

Long Sleeves Budget: $16,889,037 (70% of total)

Tees Assortment Plan

Long Sleeves: Neckline Pure Cotton

Cotton Jersey

Pima Cotton

Pure Cotton

Cotton Jersey

Pima Cotton

Short Sleeves: Neckline

Long Sleeves: Color Pure Cotton

Cotton Jersey

Pima Cotton

Pure Cotton

Cotton Jersey

Pima Cotton

Short Sleeves: Color

Pullover Fabrics

Cardigan Fabrics

Pullover Budget: $33,778,073 (60% of total)

Cardigan Budget: $22,518,715 (40% of total)

Sweaters Assortment Plan

Sweaters Assortment Plan Pullover Colors

Cardigan Colors

Tees Receipt Plan: $1,930,175 Long Sleeves Pima Cotton Plunge V-­‐Neck Black White Cream Heather Grey

Units 425 303 243 243

Pure Cotton V-­‐Neck Black Rose Pink Classic Nude Cream

Crew Neck Black White Cream Heather Grey

560 466 373 466

Crew Neck Black White Cream Midnight Blue

High Neck Black Cream Charcoal Grey

High Neck 665 Black 370 Burgundy 443 Charcoal Grey

Cowl Neck Black White Rose Pink

Boat Neck 205 Black 154 Cream 154 Burgundy

Units

Cotton Jersey Plunge V-­‐Neck 0 Black 0 Midnight Blue 0 Heather Grey 0 Round Neck 285 Black 163 White 163 Cream 204 Off the Shoulder 891 Black 668 Cream 668 Charcoal Grey

0 0 0

Short Sleeves Units 0 0 0

1106 829 829

0 0 0

Pima Cotton V-­‐Neck Black Classic Nude Olive Green White Heather Grey

Units 370 211 159 211 106

Pure Cotton V-­‐Neck Chalk Black Dusty Pink Classic Nude Olive Green

Units

Cotton Jersey Units V-­‐Neck 261 Chalk Black 0 Raspberry 195 Charcoal Grey 98 Powder Blue

0 0 0 0 0

Crew Neck Black Red Cream Powder Blue

Round Neck 780 Black 390 White 390 Midnight Blue 390

Round Neck 466 Black 279 White 186 Powder Pink Midnight Blue

0 0 0 0

One Shoulder Black Deep Red White

One Shoulder 426 Black 284 Burgundy 236 Charcoal Grey

Draped Neck 0 Black 0 Cream 0 Heather Grey

0 0 0

Big Store: Chicago

Big Store: Chicago Sweaters Receipt Plan: $4,222,259 Pullovers

Cardigans

Pullovers

Cardigans

Big Store: Chicago

Tees Receipt Plan: $253,335 Long Sleeves Pima Cotton Units Plunge V-­‐Neck Black White Cream Heather Grey

Pure Cotton V-­‐Neck 55 Black 40 Rose Pink 32 Classic Nude 32 Cream

Crew Neck Black White Cream Heather Grey

81 68 54 68

High Neck Black Cream Charcoal Grey Cowl Neck Black White Rose Pink

Crew Neck Black White Cream Midnight Blue

High Neck 117 Black 29 Burgundy 9 Charcoal Grey Boat Neck 26 Black 19 Cream 19 Burgundy

Units

Short Sleeves

Cotton Jersey Plunge V-­‐Neck 40 Black 23 Midnight Blue 23 Heather Grey 29 Round Neck 40 Black 0 White 23 Cream 0 Off the Shoulder 0 Black 0 Cream 34 Charcoal Grey

0 0 0

Units 76 0 65

160 120 0

72 29 43

Pima Cotton V-­‐Neck Black Classic Nude Olive Green White Heather Grey

Units

Pure Cotton V-­‐Neck 47 Chalk Black 27 Dusty Pink 20 Classic Nude 27 Olive Green 13

Units

Cotton Jersey Units V-­‐Neck 34 Chalk Black 0 Raspberry 26 Charcoal Grey 13 Powder Blue

24 6 18 12

Crew Neck Black Red Cream Powder Blue

Round Neck 72 Black 36 White 36 Midnight Blue 36

Round Neck 57 Black 34 White 23 Powder Pink Midnight Blue

32 16 16 16

Off the Shoulder Black Deep Red White

One Shoulder 54 Black 36 Burgundy 30 Charcoal Grey

Draped Neck 38 Black 8 Cream 30 Heather Grey

19 11 24

Small Store: San Diego

Small Store: San Diego Sweaters Receipt Plan: $844,451 Pullovers

Cardigans

Pullovers

Cardigans

Small Store: San Diego

Final Thoughts

Due to the information found on Vince, we feel as if there is a great potential for growth in the next few seasons.

After gaining guidance from a new administration and seeing a gradual increase from our 2015 decline, we have decided to buy for categories we feel are greatly valued at our company and also aligned with current trends.

What’s Next?

We will continue to push our essentials line heavily because of their impeccable quality, as well as tapping into athleisure and its growing popularity.

Thank You Olivia Ewing Shreya Lunawat Lian Najarian Caroline Miller

http://0-www.portal.euromonitor.com.library.scad.edu/portal/analysis/tab https://0-www.statista.com.library.scad.edu/outlook/90000000/109/apparel/united-states# https://0-www.statista.com.library.scad.edu/statistics/723694/us-household-expenditure-on-women-apparel-by-category/ https://www.indexmundi.com/united_states/demographics_profile.html theory.com ragandbone.com joie.com pinterest.com https://www.retaildive.com/news/the-7-trends-that-will-shape-apparel-retail-in-2017/433249/ https://www.statista.com/topics/965/apparel-market-in-the-us/ https://www.statista.com/statistics/243072/sales-of-the-us-apparel-market-by-segment/ https://apparelmag.com/womens-apparel-market-be-worth-much-2021 https://www.ibisworld.com/industry-trends/specialized-market-research-reports/consumer-goods-services/apparel-accessories-stores/clothing-boutiques.html https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/marketing%20and%20sales/pdfs/unleashing_fashion_growth.ashx https://www.prnewswire.com/news-releases/research-and-markets---global-women-apparel-market-2016-2020-with-gap-hm-inditex-kering-l-brands-nike--pvh-dominating-300314192.html https://www.statista.com/statistics/733057/retail-sales-of-luxury-apparel-retailers-in-the-us/ https://www.statista.com/forecasts/409654/united-states-womens-clothing-stores-sales-forecast-naics-44812 https://www.manta.com/c/mtw9jk6/joie https://www.businessoffashion.com/articles/bof-exclusive/theory-2-0-andrew-rosen-millennial-strategy https://fashionunited.com/news/business/marcus-wainwright-becomes-only-ceo-of-rag-bone/2016061611717

Citations

http://investors.vince.com/about/overview/default.aspx https://www.vince.com/ http://s1.q4cdn.com/115689351/files/doc_financials/2016/Vince-2016-Annual-Report.pdf http://investors.vince.com/press-releases/press-release-details/2018/Vince-Holding-Corp-Provides-Holiday-Sales-Performance-Update/default.aspx https://fashionista.com/2017/04/vince-2016-earnings https://app.avention.com/article/05dba40d-d1c0-3cbd-a5bf-69912f515570 http://s1.q4cdn.com/115689351/files/doc_financials/2016/Vince-2016-Annual-Report.pdf https://ycharts.com/companies/VNCE/gross_profit_margin https://www.streetinsider.com/Corporate+News/Vince+Holding+%28VNCE%29+Holiday+Direct-To-Consumer+Comparable+Sales+Increased+8.8%25/13673674.html https://www.businesswire.com/news/home/20171207005250/en/Vince-Holding-Corp.-Reports-Quarter-2017-Results https://fashionista.com/2017/04/vince-2016-earnings http://fernfortuniversity.com/term-papers/pestel/nyse4/884-vince-holding-corp-.php http://wwd.com/business-news/financial/vince-ceo-brendan-hoffman-talks-expansion-amid-sliding-sales-profit-decline-10877687/ http://investors.vince.com/California-Transparency-in-the-Supply-Chain-Act/default.aspx http://investors.vince.com/corporate-governance/management/default.aspx http://www.pugpies.com/vince-droppedshoulder-jersey-tshirt-womens-white-clothing-topsvince-dresses-saksshop-best-sellers-p-1086.html http://www.helinizolasyon.com/vince-classic-stripe-tee-vanilla-black-women-topsvince-t-shirt-dressshop-best-sellers-p-728.html http://www.helinizolasyon.com/vince-boxy-pullover-sand-women-sweaters-knitsvince-shoes-rackshop-best-sellers-p-761.html https://www.pinterest.com/search/pins/?q=vince&rs=typed&term_meta[]=vince%7Ctyped

Citations