Six Month Buying Plan
1
TABLE OF CONTENTS 4
BRAND IDENTITY
9
SCOPE & SIZE
12
TARGET MARKET
14
COMPETITIVE MARKETPLACE
20
MARKETPLACE TRENDS
25
SIX MONTH BUYING PLAN
28
STORE PLANS
34
ASSORTMENT PLAN
36
RISK OR OPPORTUNITY
2
C O L L E C T I O N O F S T Y L 3
E
SCOPE &
BRAND IDENTITY
4
& SIZE
FUNCTIONAL TACTILE TIMELESS MODERN 5
Martin Andersson, COS Grew up in rural Sweden, studied fashion and graduated from Central Saint Martins in London Sketched his own designs when he was younger and his mother would construct those designs Worked for a few British brands and started his own label before joining COS in 2008 Minimalist construction, tactility, basics at core Minimal design doesn’t mean minimal effort - wants to make each item feel special and concentrate on quality materials with interesting silhouettes
6
Karin Gustafsson, COS Understated. Timeless. Easy-going. Approached by COS at her masters graduation show at the Royal College of Art in London when she was just 26 Head designer since 2006 Originally from Sweden but feels like London is an amazing place for the arts Unassuming designs - jeans, plain silk or cotton top, brogues. Worked a lot with material development to develop interesting silhouettes
7
MISSION Exploring the concept of style over fashion, COS offers affordable fashion pieces for the contemporary wardrobe.
8
SCOPE &
SCOPE & SIZE
9
• H&M Brand launched high end spin off store COS in 2007 in London • 182 brick & mortar stores internationally, 33 countries total • Entered US market 2014 • 10 brick and mortar stores in the US, largest presence in NYC
FLAGSHIP STORES ATLANTA, THE SHOPS BUCKHEAD BOSTON, NEWBURY STREET COSTA MESA, SOUTH COAST PLAZA GREENWICH, GREENWICH AVENUE HOUSTON, RIVER OAKS DISTRICT KING OF PRUSSIA, KING OF PRUSSIA MALL LOS ANGELES, BEVERLY CENTER LOS ANGELES, NORTH BEVERLY DRIVE MIAMI, DESIGN DISTRICT NEW YORK, FIFTH AVENUE NEW YORK, SPRING STREET NEW YORK, WESTFIELD WORLD TRADE CENTER
10
E-COMMERCE E-Commerce launched in 2014 internationally • Very accessible e-commerce and international reach because users can filter out their country to find relevant information catered to them • Rated #18 out of 50 on ecommerceplatforms.com naming the top retail websites
662K Followers 332,957 Followers 3,705 Followers 53 Uploads 2,393 Followers 11
TARGET MARKET
12
V A L S
20% Strivers
45% Thinkers
35% Achievers
• adult women • ages 21-40 • financially secure with disposable income • consumers inspired by nature and design • considered “quiet rebels”
13
COMPETITIVE MARKETPLACE
14
I
T
I
O
N
The competitive market for COS brand is pretty narrow in aesthetic but broad in pricing and accessibility. After analyzing the market, we were able to break down the competition into three groups - Price, Aesthetic and E-commerce competitors.
E
T
Price & Other Stories Zara Modern Citizen Everlane
M
P
Aesthetic Steven Alan Celine Jil Sander
C
O
E-Commerce ASOS Front Row Shop
15
STRENGTHS Stimulating and engaging store environment High end feel, focus of quality with affordable price point Part of established H&M Group Seamless brand image across all platforms Strong presence internationally and online Constantly expanding -- new to the market place Wide range of products for men, women, children and things Strong understanding of their target market Collaborations
16
WEAKNESSES Lack of advertising and merchandising, possibly missing potential customers Some pieces can get very expensive for a simple, staple item Lack of store accessibility outside of major cities Minimal promotions and discounts- might be missing out on younger demographic that look for deals Product details looked over due to lack of in store visuals Online magazine section
17
OPPORTUNITIES Open more shops in major US cities Provide more awareness for remote customers via apps & social media CSR - more transparency, philanthropy Endorsements -- bloggers, fashion influencers and celebrities Enrich personal shopping experiencecoming up with more creative ways to showcase products via in store styling
18
THREATS Competitors that are on trend and cheaper might lure a greater audience - many will prefer the fashion forward and more affordable choices that are available around them The focus on timelessness could potentially lead to decline in sales Convenience - brand may be overlooked by some because lack of stores Customers who are unfamiliar may find the website underwhelming and confusing
19
MARKETPLACE TRENDS
20
FASHION TRENDS [ k n i t w e a r ]
[ t r o u s e r s ]
Reinvents a classic sweater silhouette by adding volume in the sleeve
More masculine silhouette Drawing attention to the waist Can already see the start of this trend on the COS website and in stores.
Could be beneficial to COS because they mostly carry classic, crew neck sweaters and this would add more variety and expand their knitwear design
Expecting to see more and more of this trend coming to COS
21
FASHION TRENDS [ b l o u s e s ]
[ o u t e r w e a r ]
Shirt layering and elongated sleeves
Timeless, classic, and tailored coat
We are seeing this reworked classic shirt used in many upcoming trends
Exaggerated shoulders goes with the more masculine silhouette
This trend would be a unique way to showcase the classic shirts COS already carries in a new and inventive way
trend
Follows the minimalistic
22
TEXTILE TRENDS [ s h e e r ]
Adds a more lightweight touch to the COS aesthetic that will be perfect for spring and summer Easy to layer Easy to combine with other fabrics in a simplistic way Timeless and tactile
23
LIFESTYLE TRENDS +Emphasis on craftsmanship, how things are made, and high quality construction that is long lasting and timeless +People are getting more used to traveling and are buying clothes to cater to that migrant lifestyle +Minimalism // minimalistic ways of living +/-Sustainability -Millennials are more interested in paying for experiences than purchasing products 24
SIX MONTH BUYING PLAN
25
Focus Product Category : Women’s Sportswear Outerwear, Knitwear, Tops, Woven Shirting Trousers, Denim, Skirts and Shorts
Planned Net Sales , Spring 2017
7,475.0
Est. Net Sales, Spring 2016
6,500.0
Plan % Last Year
15%
Average Stock, Retail
3,805.4
Inventory Turnover
2.0
Planned Reductions, $
1,345.5
Reductions % Sales
18%
Planned IMU %
59.3%
26
Planned Net Sales are set at $7,475,000 for Spring 2017, a 15% increase from the previous year -
This increase is just aggressive enough because COS is new to the US marketplace and sure to gain popularity but also conservative enough to keep the new stores opening in Miami and Pennsylvania into consideration because their success in numbers still unknown.
The inventory turnover is set at an industry standard of 2.0 and 18% of sales are allowed for reductions -
COS follows the industry calender, not fitting into fast fashion, which will lend for a standard turnover of product with no major months of markdown. All the marketplace trends seem to favor COS so not many makrdowns are anticipated.
Planned purchases at retail are $8,720,400 for the women’s sportswear category in the US marketplace.
FEB
MARCH
APRIL
MAY
JUNE
JULY
SPRING 2017
Net Sales
1121.3
1345.5
1196.0
1345.5
1495.0
971.8
7475.0
% Spring
15%
18%
16%
18%
20%
13%
100%
3700.1
4036.5
3827.2
4036.5
4036.5
3401.1
3805.4
3.3
3.0
3.2
3.0
2.7
3.5
4036.5
3827.2
4036.5
4036.5
3401.1
3600.0
107.6
201.8
201.8
296.0
336.4
201.8
1345.5
8%
15%
15%
22%
25%
15%
100%
Purchases, Retail
1565.3
1338.0
1607.1
1641.5
1196.0
1372.5
8720.4
Purchases, Cost
636.7
544.3
653.7
667.7
486.5
558.3
3547.3
Plan BOM Stock Stock/ Sales Ratio Plan EOM Stock Planned Reductions % Spring
27
1.964
28
STORE PLANS
29
N E W
Y O R K
WORLD TRADE CENTER
Planned Net Sales , Spring 2017
1250.0
Est. Net Sales, Spring 2016
1087.0
Plan % Last Year
15%
Average Stock, Retail
516.8
Inventory Turnover
2.4
Planned Reductions, $
225.0
Reductions % Sales
18%
Planned IMU %
59.3% 30
Planned Net Sales are set at $1,250,000 for Spring 2017, a 15% increase from the previous year The inventory turnover is set at 2.4 and 18% of sales are allowed for reductions
Planned purchases at retail are $1,388,800 for the New York Store in the WTC The New York Store is estimated to be the largest store bringing in the most revenue. The stores will follow closely with the corporate plan so the yearly increase, planned reductions and IMU mimic the corporate plan but the inventory turnover is slightly higher at 2.4. It can be assumed that the New York store will turn quicker than other stores because of the amount of foot traffic and the market in New York is much of what the COS target market embodies. FEB
MARCH
APRIL
MAY
JUNE
JULY
SPRING 2017
Net Sales
187.5
225.0
200.0
225.0
250.0
162.5
1250.0
% Spring
15%
18%
16%
18%
20%
13%
100%
Plan BOM Stock
525
562.5
540
562.5
550
438.8
516.8
Stock/ Sales Ratio
2.8
2.5
2.7
2.5
2.2
2.7
562.5
540
562.5
550
438.8
438.8
18.0
33.8
33.8
49.5
56.3
33.8
225.0
8%
15%
15%
22%
25%
15%
100%
Purchases, Retail
243.0
236.3
256.3
262.0
195.0
196.3
1388.8
Purchases, Cost
98.9
96.2
104.3
106.6
79.4
79.9
565.2
Plan EOM Stock Planned Reductions % Spring
31
2.4
LOS ANGELES BEVERLY DRIVE
Planned Net Sales , Spring 2017
935.0
Est. Net Sales, Spring 2016
813.0
Plan % Last Year
15%
Average Stock, Retail
420.2
Inventory Turnover
2.2
Planned Reductions, $
168.3
Reductions % Sales
18%
Planned IMU %
59.3% 32
Planned Net Sales are set at 935,000 for Spring 2017, a 15% increase from the previous year The inventory turnover is set at 2.2 and 18% of sales are allowed for reductions
Planned purchases at retail are $1,047,200 for the Los Angeles Store on Beverly Drive The Los Angeles store is larger with good foot traffic but slightly lower numbers are anticipated when compared to the New York store. The inventory turnover is set at 2.2 which is higher than the corporate plan but slightly lower than the New York store - this is based off of the market that is in California. Both stores are located in international cities which is why they would turn faster than the average store because COS is considered to be seasonless which complements the interenational buyer. However, based on size and marketplace, LA would not turn as quick as NY. FEB
MARCH
APRIL
MAY
JUNE
JULY
SPRING 2017
Net Sales
140.3
168.3
149.6
168.3
187.0
121.6
935.0
% Spring
15%
18%
16%
18%
20%
13%
100%
420.8
454.4
433.8
454.4
448.8
364.7
420.2
3.0
2.7
2.9
2.7
2.4
3.0
454.4
433.8
454.4
448.8
364.7
364.7
Planned Reductions
13.5
25.2
25.2
37.0
42.1
25.2
168.3
% Spring
8%
15%
15%
22%
25%
15%
100%
Purchases, Retail
187.4
173.0
195.4
199.7
144.9
146.8
1047.2
Purchases, Cost
76.3
70.4
79.5
81.3
59.0
59.7
426.2
Plan BOM Stock Stock/ Sales Ratio Plan EOM Stock
33
2.2
ASSORTMENT PLAN
34
BUYING CATEGORY : WOMEN’S SPORTSWEAR Outerwear
12% 14%
1,046,448 1,220,856
18% 18%
1,569,672 1,569,672
Trousers
18%
1,569,672
Denim
5%
436,020
Skirts
10%
872,040
Shorts
5%
436,020 8,720,400
Knitwear Tops Woven Shirting
100%
Outerwear & Shirting
2 4 6 8 10 12
17% 18% 20% 20% 15% 10% 100%
Knitwear & Tops
444,750 470,902 523,224 523,224 392,418 261,612 2,616,120
XS S M L
Bottoms
20% 28% 30% 22%
$558,106 $781,348 $837,158 $613,916
100%
$2,790,528
35
2 4 6 8 10 12
18% 20% 22% 15% 13% 12% 100%
$596,475 $662,750 $729,025 $497,063 $430,788 $397,650 $3,313,752
STATEMENT OF RISK OR OPPORTUNITY
36
STATEMENT OF OPPORTUNITY We believe that the buying plan we have put together is an opportunity as opposed to risk. It is an opportunity because the numbers we have included in our plan are fairly conservative and in line with the COS brand and aesthetic. We have only planned a small increase in what we are buying in comparison to last year’s sales, but still an increase nonetheless that we are confident will be able to achieve. The categories we are purchasing for have been assorted accordingly to size for both tops and bottoms. The only risk that we saw was that we are buying for two U.S. stores that are not open yet. We predict those stores to be a success, but because we do not have numbers on those stores is the only reason as to why we were skeptical. 37
ISABELLA BERKOFF GRAHAM LEWIS MAGGIE HOYLE JESSIE SCOTT 38