W
buying plan fall 2015 FLORES MAGLIOCHETTI MORRONE
TABLE OF CONTENTS
1 ABOUT
PAGES 1-6
Mission Statement Before | today | future
2
SCOPE & SIZE PAGES 7-10 Locations Freds - Restaurant What We Carry
3
TARGET MARKET PAGES 11-14 Phoebe Sebastian Carmella Victoria
4
MARKETING STRATEGIES PAGES 15-20
Ad Campaigns Blog Promotional Partnerships Collaborations Social Media
5
6
STRENGTHS PAGES 25-30 General Overview Digitized Store
7
COMPETITORS PAGES 21-24
TRENDS
Neiman Marcus Saks Fifth Avenue Bergdorf Goodman Bloomingdale’s
Mega trends Actively Casual Artisanal Caliginous Trending
PAGES 31-40
8
PLAN
PAGES 41-50
CORPORATE PLAN New York, NY Madison Ave. Miami, FL Miami Beach ASSORTMENT PLAN
1 | Flores Magliochetti Morrone
Mission Statement BARNEYS Before Today Future
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BARNEYS NEW YORK EXEMPLIFIES LUXURY T H RO UG H I N N O V A T I V E M E R C H A N D I S E AND AN INCOMPARABLE C U S T O M E R E X P E R I E N C E . FOUNDED ON VALUES OF O P U L E N C E AND EXCLUSIVITY, B A R N E Y S REMAINS AN OUTLET DESIGNED FOR THE MODERN CUSTOMER T H AT D E S I R E S R A D I A N T S T Y L E
BARNEYS MISSION
3 | Flores Magliochetti Morrone
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ABOUT BARNEYS
5 | Flores Magliochetti Morrone
B E F O R E
T O D A Y
Barney’s began in 1923 by Barney Pressman. Barneys started as a bargain basement for menswear, especially discounted suits. The store began as a 200 foot store on Seventh Avenue at 17th street in New York City. It wasn’t till 1958 that Fred, Barneys son, converted it into a specialty retailer, promoting luxury products. Barneys was the first to introduce Gieorgio Armani to the American market in the 1970’s. It was not until 1986 that Barneys sold women’s clothing.
Steven Feldman is now the chief financial officer of Barney New York. Karl Hermanns took role of executive VP. Mark Lee, who was the previous chief executive of Gucci, is now the new CEO of Barney’s New York. Creative Director was designated as Dennis Freedman (veteran of W Magazine). Barneys New York now has 33 total locations in the US. Pushing boundaries with innovative designer brands, Barneys speaks to the edgy consumer.
F U T U R E
Barneys New York has recently acquired a location on 17 Avenue and 16th Street. This area happens to be the same spot that the original Barneys resided in. The space will serve as a second flagship location with over 57,000 sq/ft. The five story building will open to the public in 2017. Along with this advancement in locations, Barneys continues to set the standard with technology. By introducing creative ways to connect with the customer, Barneys remains a dark horse within the luxury retail world.
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SIZE
SCOPE
7 | Flores Magliochetti Morrone
WHAT WE CARRY women men BEAUTY home kids the window warehouse freds
Average size of store is 50,000 sq/ft. Flagship locations New York City & Los Angeles 16 Barneys New York locations 13 outlet stores in the US 4 restaurant locations
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Our Product assortment i n c l u d e s a l a r g e va r i e t y of innovative, edgy, smart, modern brand s & designer s
9 | Flores Magliochetti Morrone
average size of a barneys new york store is roughly 50,000 sq/ft. while flagship locations exceed 100,000
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The existing customer who shops at Barneys is between the ages of 25-45. He/she is a creative professional who shops for cutting-edge items. The target market is an innovator and trendsetter who knows and understands the importance of craftsmanship and quality. With a salary of $100,000+, the customer has an extensive amount of disposable income for highend fashion products. They look for an extraordinary retail experience, which includes exclusive pieces from the newest designers. They are creative merchants who are well informed about the latest news in the realm of social media.
11 | Flores Magliochetti Morrone
“Innovative and trend setting professionals who shop for cutting-edge items� Buying Plan | 12
EMPOWERED
Education: Bachelors in Fine Arts Residence: Brooklyn, NY Marital Status: Single Occupation: Art Director Income: $85,000/yr Vals: Achiever / Innovator Favorite Brands: Isabel Marant, Moncler, Stella McCartney, Marni Likes: Cutting edge, young and energetic, innovative designers Shops outfits for: Events, office wear, weekend wear, and beauty products
32 PHOEBE CONRAD Gender: Female Age: 32
ENTREPRENEUR
Education: Bachelors and Masters in Finance Residence: New York, NY Marital Status: Married with 2 children Occupation: Financial Analyst Income: $220,000/yr Vals: Experiencer / Innovator Favorite Brands: Loewe, Paul Smith, Thome Brown, John Varvatos, Moncler, Armani Likes: Brand loyalty, personal shopper, golf, craftsmanship, and variety of color assortments Shops outfits for: Professional wear, country club attire, casual weekend
43 CARMELLA RUSSO Gender: Female Age: 43 13 | Flores Magliochetti Morrone
45 SEBASTIAN JONES Gender: Male Age: 45
MILLENNIAL
Education: Communication graduate Berkeley Residence: New York, NY Marital Status: Single Occupation: Associate Publicist Income: $55,000/yr Vals: Experiencer / Innovator Favorite Brands: Helmut Lang, Kenzo, IRO, Acne Studios Likes: E-commerce, fast paced environments, expects the best customer service, looks for lots of options, shares life via Instagram, jet-set lifestyle Shops outfits for: VIP events, business meetings, weekend wear
24 VICTORIA MITCHELL Gender: Female Age: 24
“IT� MOM
Education: Bachelors in Fine Arts, RISD Residence: Dallas, TX Marital Status: Married with 2 children Occupation: Interior Decorator Income: $120,000/yr Vals: Achiever / Experiencer Favorite Brands: Altuzarra, Chloe, Bottega Veneta Likes: Luxury goods, newest styles and designers Shops outfits for: Business casual, representing a luxurious image for customer, date night with husband
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M E G R G
A T A I
R I S T E
“Barneys New York speaks the language of today’s customer, using smart marketing, focused retailing and appropriate technology, while not sacrificing the hush of luxury,” - Mickey Alam Khan, editor in chief of Luxury Daily, New York
15 | Flores Magliochetti Morrone
K N T E S
4
Ad Campaigns Blog Promotional Partnerships Collaborations social media
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123
BLOG
PROMOTIONAL PARTNERSHIPS
AD CAMPAIGNS
THE WINDOW
A NEW YORK HOLIDAY
BETTER THAN EVER
worked with Jay Z on the items.
BROTHERS, SISTERS, SONS AND DAUGHTERS
Launched in February 2011 based on their famous window displays.
THE WINDOW [PRINT]
In February 2015 Barneys New York released a print edition of its editorial site, ‘The Window’. The Window’s print component places emphasis on high-gloss photography, and interviews with designers that are stocked at Barneys.
Holiday 2013 with Jay Z. included limited-edition products by designers such as Lanvin, Balenciaga, Balmain, Rick Owens and Proenza Schouler. All the designers
ELECTRIC HOLIDAY
Holiday 2012 with Disney. Animated short starring Minnie Mouse, who window-shops for a Lanvin dress, daydreams her way to Paris Fashion Week and meets VIPs like Steven Meisel and Carine Roitfeld along the way.
GAGA’S WORKSHOP
Holiday 2011 with Lady Gaga. Gaga’s version of Santa’s workshop, complete with limited edition trinkets, Gagacurated books and music and rock candy jewelry all developed by Gaga and go-to designer, Nicola Formachetti.
17 | Flores Magliochetti Morrone
Spring 2015 ad campaign. Supermodels court younger men embracing both age and diversity. Image from the campaign shown below.
Spring 2014 ad campaign used seventeen transsexual models. Details and write up about the campaign are included on the next page. Refer to page 28 for another editorial shot from the campaign.
45
SOCIAL MEDIA
COLLABORATIONS
NEW BALANCE 1700
Live interactive Q+A with the creative editor-at-large, Simon Doonan, relating to the Royal Wedding.
Facebook page mainly delivers product posts relevant to the season, holidays or recent events. The brand also posts fashion rules, links to content on its blog, and a Polyvore tab that allows Facebook fans to group items from Barneys into fashion sets that they can share with fellow Facebook users.
Sneaker with a full-grain that features and off white synthetic that glows in the dark.
RUSSEL WESTBROOK
Oklahoma City Thunder point guard launched a menswear collection.
OPENING CEREMONY & INTEL
MICA Bracelet. The item is an innovative and technology driven accessory that delivers information to the wearer.
Two accounts are being used, barneysnyofficial and barneysman. Links to shop items on the feed are included in the descriptions of each photo. The barneysman account is used strictly for menswear and gifts.
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19 | Flores Magliochetti Morrone
BROTHERS, SISTERS, SONS AND DAUGHTERS The campaign featured 17 transgender individuals with diverse experiences and unique personal stories, showcased as a limited edition portfolio and through a series of short films by iconic photographer and filmmaker Bruce Weber. “Barneys New York is proud that these beautifully captured images and stories will raise awareness and funds for the trans community,” said Mark Lee, CEO of Barneys New York. “Supporting individual rights is deeply important to Barneys, and we have the utmost appreciation, respect and admiration for the participants - all of whom have been so generous in sharing their time, talent and personal narratives for this unique campaign.”
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COMPETITIVE
A N A LY S I S 21 | Flores Magliochetti Morrone
Barneys New York has deep roots in heritage, being a company founded in the early 20th century. It was during this time that the opportunities outweighed the threats. So, it’s no question of why that many successful retail corporations came about, but more so who they are and what they are doing now. By recognizing the competition in the market place for Barneys, we can be prepared. Staying in the know about the latest trends being pursued or technologies being used can be extremely beneficial to the success of a retail space.
COMPETITORS: Neiman Marcus Bergdorf Goodman Saks Fifth Avenue Bloomingdale’s
It is crucial to stay on top of the competition in every aspect because the smallest missed detail can make a huge impact. The opportunity with luxury department retail is that the barriers for entry are very difficult.
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N
Neiman
B
M a r c u s Bergdorf GoodMan
• Founded in 1907 • Luxury, specialty department stores • Family business • Also owns Bergdof Goodman • Competes with Saks Fifth Avenue, Nordstrom, Bloomingdale’s and Von Maur • Product categories include clothing, footwear, furniture, jewelry, beauty products, electronics and house ware • Sells luxury brands and also has own private label • Large variety for product assortment, catered to the upper-middle class customer • Very lucrative marketing and PR objectives • Teams up with Target to create lines • 42 locations in US
23 | Flores Magliochetti Morrone
• Founded in 1899 • 1 location (NY, NY) • Annual sales of 600 million in 2013 • Luxury retailer of the year in 2011 • Product categories include clothing, footwear, accessories, furniture, beauty products, and home goods • Large luxury assortment, more catered to the upper class • Focus on menswear • “Shoe About Town” application, consumers can send pictures of their shoe to a brand, which are then displayed for other users can see
S
B
Saks fifth Avenue B l o o m i n g d a l e ’ s • Founded in 1898 • Total of 39 stores in the United States • In 1924 Saks Fifth Avenue became the first large retailer residing in a primarily residential district • Product categories include clothing, footwear, accessories, home goods, and beauty products • Minimal aesthetic and large selection of designer ready to wear • In 2007, Saks started 10022SHOE, shoe store. The story behind the number is that the shoe store has its own zip code • In 2012, Saks Fifth Avenue invested one-third of its $120 million CapEx on Project Evolution. This project delivers endless business opportunities through an application.
• Founded In 1861 • Owned by Macy’s, Inc • Competitors includes Saks Fifth Avenue, Lord & Taylor, Neiman Marcus, Nordstrom, and Von Maur • Operates 37 stores. • Outlet stores in 13 states • Product categories include clothing, footwear, accessories, beauty, home goods, gifts, and kids • Large product and designer assortment • More catered to the middle class customer • In 2012, Bloomingdale’s opened virtual fitting rooms.
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STRE NGTHS
25 | Flores Magliochetti Morrone
STRENGTHS Experience Assortment Technology Locations
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Barneys New York continues to make enormous strides in the world of luxury retailing. Keeping up with and surpassing any and all competition is extremely important in making sure the Barneys customer remains interested. The list is endless with the amount of strengths our brand has maintained. Below is a list of success: - Customer service - Exciting retail experience - Exclusive content from the newest designers - Locations & Unique spacious interior Barneys New York was awarded in 2012 with the Luxury Retailer of the Year by Luxury Daily. This success was due to their focus on emerging channels. Also in 2012, Barneys partnered with HUGE, digital agency, to update their e-commerce website. The new minimal and sophisticated aesthetic increased their sales 34% and lead them to win the OMMA Online Advertising Creativity Award for the best retail website in 2012.
27 | Flores Magliochetti Morrone
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29 | Flores Magliochetti Morrone
Barneys New York just introduced a new way to shop while in the store. Stretched out inside the cafe at Barneys, an interactive banquet table intrigues visitors. Wanting to look for a pair of shoes while ordering a cocktail? Done. This digital, touch screen table does just that and more. Utilizing the plethora of content found on The Window, Barneys new blog, visitors might be spending a little more time in Barneys than expected.
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T RE ND S To be covered: Mega Trends | Trending
31 | Flores Magliochetti Morrone
“Being one step ahead of a fashion trend is not so i m p o r ta n t t o m e . W h at matters is to always forge ahead� - Sonia Rykiel
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MEGA TREND #1
A c t i v
e ly GEOMETRIC LINES STRETCH FABRICS COLOR BLOCKING VIBRANT COLORS
Interest in active wear has been at an all-time high for the past few seasons. This interest has made a huge impact on the runway, serving as inspiration for many designers. Translating active wear into read-to-wear can described as a more casual look with emphasis on being comfortable and having adaptable outfits. Items like graphic shirts and joggers are key items for this mega-trend.
Casual 33 | Flores Magliochetti Morrone
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35 | Flores Magliochetti Morrone
MEGA TREND #2
PATCHWORK LOOSE FITTING ONE OF A KIND T E X T U R E
Building off the ever present androgynous trend, the artisan is bringing this concept into the type of materials and construction used to make garments. Loose fitting, patching together, and blending unconventional materials define this mega-trend. The main idea surrounding the artisan is based on consumers having a desire for a piece that looks hand-made and one of a kind. With characteristics rooted in authenticity and workmanship, the artisan will attract a wide range of markets, while also drawing a little more attention from younger customers.
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MEGA TREND #3
The desire designers are now possessing is to pursue the dark side of life. Using aspects of the past to the future, Caliginous is based on the strong and luxuriously fierce. Focusing on the drama and romance inspired from historical costumes and medieval references, designers are encompassing this fantasy laced with edge and roughness. Alluding to the future, there is an essence of intensity and strong emotional attachment. Customers are craving an emphasis on sexiness and richness of an opulent lifestyle of the past.
Caliginous 37 | Flores Magliochetti Morrone
EMBROIDERY MEDIEVAL CONSTRUCTION OPULENCE
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MATCHING SEPERATES
TRENDING
I t ’ s a g i ve n t hat m atchi n g i n s ome form sh oul d b e part of every day dressin g. How e ve r , t he ru n way i s s ay i n g ‘more’ w ith match ing prin ts , patterns , & ac cess ories .
39 | Flores Magliochetti Morrone
STICH & PIECE
C o lo r blo ck i n g ha s i n f l u e nced a un ique trend in volvin g in novative stitch in g. Pi e ce d to g e t he r t e xt u r e & a symmetrical seaming ch aracteriz e th is n ew trend.
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P
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L
A
N
PLAN Corporate Plan New York, NY Madison Ave. Miami, FL Miami Beach Assortment Plan
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CORPORATE PLAN
43 | Flores Magliochetti Morrone
BA R N EY S N EW YOR K FA L L 2 0 1 5 C O RP OR AT E B U YI NG P L A N FO C U S P RO D U C T CAT EG ORY: WOMEN EU ROP E AN DESIGN ER S
FALL 2015 TOTAL PLAN NET SALES, FALL 2015
30,500.0
EST. NET SALES, FALL 2014
27,700.0
PLAN % LAST YEAR
10.0%
AVERAGE STOCK, RETAIL
13544.9 2.25
INVENTORY TURNOVER PLANNED REDUCTIONS, $
6,710.0
REDUCTIONS % SALES
22.0%
PLAN IMU
58.0%
FALL 2015 6 MONTH BUYING PLAN AUGUST SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FALL 2015
4,270.0
5,490.0
4,880.0
5,490.0
6,710.0
3,660.0
30,500.0
14.0%
18.0%
16.0%
18.0%
22.0%
12.0%
100.0%
13,237.0
14,823.0
14,152.0
14,823.0
15,433.0
11,346.0
13,544.9
3.1
2.7
2.9
2.7
2.3
3.1
14,823.0
14,152.0
14,823.0
15,433.0
11,346.0
11,000.0
81,577.0
PLAN REDUCTIONS
536.8
1,006.5
1,006.5
1,476.2
1,677.5
1,006.5
6,710.0
% FALL
8.0%
15.0
15.0%
22.0%
25.0%
15.0%
100.0%
PURCHASES, RETAIL
6,392.8
5,825.5
6,557.5
7,576.2
4,300.5
4,320.5
34,973.0
PURCHASES, COST
2,685.0
2,446.7
2,754.2
3,182.0
1,806.2
1,814.6
14,688.7
NET SALES % FALL PLAN BOM STOCK STOCK / SALES RATIO PLAN EOM STOCK
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NEW YORK PLAN
45 | Flores Magliochetti Morrone
BA R N EY S N EW YOR K FA L L 2 0 1 5 M AD I S ON, AV E. NEW YOR K B U YI N G PLAN FO C U S P RO D U C T CAT EG ORY: WOMEN EU ROP E AN DESIGN ER S
FALL 2015 TOTAL PLAN NET SALES, FALL 2015
7,600.0
EST. NET SALES, FALL 2014
6,925.0
PLAN % LAST YEAR
10%
AVERAGE STOCK, RETAIL
2863.9 2.65
INVENTORY TURNOVER PLANNED REDUCTIONS, $
1,672.0 22.0%
REDUCTIONS % SALES
0%
PLAN IMU FALL 2015 6 MONTH BUYING PLAN
AUGUST SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FALL 2015
1,064.0
1,368.0
1,216.0
1,368.0
1,672.0
912.0
7,600.0
14.0%
18.0%
16.0%
18.0%
22.0%
12.0%
100.0%
2,766.4
3,146.4
3,040.0
3,146.4
3,176.8
2,371.2
2,863.9
2.6
2.3
2.5
2.3
1.9
2.6
PLAN EOM STOCK
3,146.4
3,040.0
3,146.4
3,176.8
2,371.2
2,400.0
17,280.8
PLAN REDUCTIONS
133.8
250.8
250.8
367.8
418.0
250.8
1,672.0
% FALL
8.0%
15.0%
15.0%
22.0%
25.0%
15.0%
100%
PURCHASES, RETAIL
1,577.8
1,512.4
1,573.2
1,766.2
1,284.4
1,191.6
8,905.6
PURCHASES, COST
662.7
635.2
660.7
741.8
539.4
500.5
3,740.4
NET SALES % FALL PLAN BOM STOCK STOCK / SALES RATIO
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MIAMI PLAN
47 | Flores Magliochetti Morrone
BA R N EY S N EW YOR K FA L L 2 0 1 5 M I AM I, F LOR I DA B U YI NG P L A N FO C U S P RO D U C T CAT EG ORY: WOMEN EU ROP E AN DESIGN ER S
FALL 2015 TOTAL PLAN NET SALES, FALL 2015
2,500.0
EST. NET SALES, FALL 2014
2,271.0
PLAN % LAST YEAR
10.0%
AVERAGE STOCK, RETAIL
1,075.7 2.32
INVENTORY TURNOVER PLANNED REDUCTIONS, $
550.0
REDUCTIONS % SALES
22.0% 0%
PLAN IMU FALL 2015 6 MONTH BUYING PLAN
AUGUST SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FALL 2015
NET SALES
300.0
425.0
375.0
450.0
550.0
400.0
2,500.0
% FALL
12.0%
17.0%
15.0%
18.0%
22.0%
16.0%
100%
PLAN BOM STOCK
900.0
1,105.0
1,050.0
1,170.0
1,265.0
1,040.0
1,075.7
3.0
2.6
2.8
2.6
2.3
2.6
1,105.0
1,050.0
1,170.0
1,265.0
1,040.0
1,000.0
6,630.0
PLAN REDUCTIONS
44.0
82.5
82.5
121.0
137.5
82.5
550.0
% FALL
8.0%
15.0%
15.0%
22.0%
25.0%
15.0%
100.0%
PURCHASES, RETAIL
549.0
452.5
577.5
666.0
462.5
442.5
3,150.0
PURCHASES, COST
230.6
190.1
242.6
279.7
194.3
185.9
1,323.0
STOCK / SALES RATIO PLAN EOM STOCK
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BA R N EY S N EW YO RK FA LL 2 0 1 5 A SS O RTMENT P L A N FO CU S P RO D U C T CAT EG ORY: WOMEN EU ROP EAN DESIGN ER S
FALL 2015 PLANNED PURCHASES, RETAIL:
CLASSIFICATION
$34,973,000
TOTAL
PURCHASES
JACKETS
16%
$5,595,680
KNITWEAR
17%
$5,945,410
TOPS
10%
$3,497,300
SKIRTS
5%
$1,748,650
PANTS
15%
$5,245,950
COATS
17%
$5,945,410
DRESSES
10%
$3,497,300
EVENING WEAR
10%
$3,497,300
100%
$34,973,000
TOTAL
TOTAL
PURCHASES
SAINT LAURENT
20%
$6,994,600
ISABEL MARANT
10%
$3,497,300
MAISON MARTIN
15%
$5,245,950
RICK OWENS
20%
$6,994,600
BALENCIAGA
15%
$5,245,950
GARETH PUGH
10%
$3,497,300
OTHER
10%
$3,497,300
TOTAL
100%
$34,973,000
DESIGNERS
49 | Flores Magliochetti Morrone
C O N C L U S I O N The buying plan for women’s European designers is necessary for the upcoming season. Interest in luxury fashion is steadily growing, with eyes being placed heavily on each fashion week. In our assortment plan, we’ve included some high selling designers such as Saint Laurent and Rick Owens. The long standing partnership with each of these designers holds true to what the Barneys customer values and looks for. Rick Owens and Saint Laurent represent the opportunity in our buying plan, without them it would be a missed opportunity. Introducing more up and coming designers such as Isabel Marant brings a little risk to the buying plan. This designer is newer to Barneys’ assortment, which is why we have included a smaller percentage to buy. Interest in Marant’s collection has been increasing steadily with each season. In the 6 month buying plans for each store, we have taken in account weather conditions, tourist activity, and the area’s purchasing habits. As noted, the Miami store has a slower turnover rate than the New York store, due to the conditions mentioned above. Although buying luxury goods involves a little risk to be taken, we feel as though this plan represents an overall oppurtunity. Through researching trends and how each designer is interpretating them, the Barneys’ buying team has determined that the upcoming fall season will be cructial for the success of the store.
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buying plan fall 2015 FLORES MAGLIOCHETTI MORRONE