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TABLE OF CONTENTS
TABLE OF CONTENTS..............2 EXECUTIVE SUMMARY............5 INDUSTRY OVERVIEW...........10 MARKETING STRATEGY.........15 PROMOTIONAL STATEGY......61 FINANCIAL PROJECTIONS....89 PERSONNEL PLAN.................97 THE RETAIL MARKET...........105 BIBLIOGRAPHY...................117 APPENDICES.......................121
PHOTO: PINTEREST
PHOTO: BURST
EXCECUTIVE SUMMARY
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OVERVIEW THE WARDROBES CORE OBJECTIVE IS TO PROMOTE SUSTAINABLE CONSUMPTION AND CIRCULAR ECONOMY. CUSTOMERS HAVE A CHANCE TO SAVE THEIR CLOTHES FROM GOING TO THE LANDFILL IN ADDITION TO HAVING AN OPPORTUNITY TO SHOP FOR GARMENTS FROM A VARIETY OF ‘WARDROBES’. OUR VISION IS TO SHOWCASE THAT SECONDHAND SHOPPING CAN BE JUST AS TRENDY AS OTHER RETAILERS ON THE MARKET. THIS BUSINESS IS A GREAT ALTERNATIVE FOR THE ONLINE RESELL SITES, WHICH REQUIRE A LOT OF YOUR OWN TIME AND EFFORT PUT INTO. A VOID IN THE FASHION INDUSTRY HAS BEEN IDENTIFIED WHICH HAS LED TO THIS BUSINESS IDEA.
COMPANY INFORMATION THE BUSINESS WILL BE AN UNINCOROPORATED BUSINESS WITH A SOLE PROPRIETORSHIP. MARILIN SEPP WOULD BE THE SOLE TRADER WHO HAS UNLIMITED LIABILITY. PHYSICAL STORE WILL BE LOCATED IN 15- 17 HIGH STREET ARCADE, CARDIFF- THE BUSINESS WILL HIRE 3-4 PEOPLE AT FIRST INSTANCE TO MAKE SURE THE STORE RUNS SMOOTHLY AND THAT THERE WILL BE SOMEONE CREATING THE CONTENT FOR THE ADVERTISING PLATFORMS.
The Wardrobes
THE STRATEGY THE COMPANY EXPECTS TO BUILD UP A LOYAL CUSTOMER
FINANCIAL PROJECTIONS THE COMPANY EXPECTS TO TAKE £ 82 080 ON THE FIRST YEAR, WHICH COMES FROM THE RENT OF THE BOXES AND CONSIDERS DIFFERENT SEASONS WHICH RESULTS IN 80% OF THE BOXES BEING SOLD OUT ON AVERAGE. HOWEVER, ONCE THE BUSINESS IS WELL- KNOWN AND RUNNING, THE RENT OF THE BOXES SHOULD BE MORE FREQUENT THUS MAKING THE BUSINESS MORE PROFITABLE.
BASE IN ORDER TO GROW MORE AS A BUSINESS AND TO GET THE WORD OUT ABOUT THE SERVICE. THE BUSINESS WILL GAIN FROM PARTNERSHIPS WITH DIFFERENT INDEPENDANT COSMETIC AND LIFESTYLE BRANDS, WHICH CAN BE FEATURED IN THE STORE AND WHOS CONSUMER BASE THE STORE CAN BENEFIT FROM. WE WILL BE OFFERING A RENTAL SERVICE IN- STORE, WHICH ALLOWS CLIENTS TO RENT A BOX TO SELL THEIR ITEMS IN. THERE WILL BE TWO TYPES OF RENTALS- THE BOX 1 (FOR GARMENTS) AND THE BOX 2 (FOR PARTNERSHIPS/ ACCESSORIES SELLERS). CLIENTS WILL SIGN A CONTRACT FOR A CERTAIN PERIOD OF TIME (3-6 MONTHS) TO RENT A SPECIFIC BOX IN STORE. THE WARDROBES WILL BE PROVIDING CUSTOMERS WITH NECESSARY ITEMS, SUCH AS HANGERS (20 PER BOX) AND LABELS SO ALL THE SELLERS NEED TO DO IS BRING THE ITEMS IN AND PRICE THEM.
PHOTO: THE STYLE STALKER
The Wardrobes
THE STRATEGY THIS BUSINESS RELIES HEAVILY ON HUMAN RESOURCES- SALES ADVISORS, THE CLIENTS RENTING THE BOXES AND SHOPPERS INSTORE. BUILDING UP A LOYAL CUSTOMER DATABASE WILL BE THE INTELLECTUAL PROPERTY RESOURCE THAT THE BUSINESS WILL BENEFIT FROM. AS WILBERG (2018) MENTIONED “PEER RECOMMENDATIONS ARE MORE VALUABLE AND ACCESSIBLE THAN THEY ONCE USED TO BE”. AS A PART OF THE PROMOTIONAL PLAN THE WARDROBES IS PLANNING ON A COLLABORATION WITH DIFFERENT INFLUENCERS DUE TO THE BENEFITS AND HIGH PROFITABILITY. WILBERG (2018) POINTED OUT HOW “FROM A CONSUMER PERSPECTIVE, INFLUENCER CONTENT IS ALMOST LIKE A RECOMMENDATION FROM A FRIEND.” AND HOW “94% OF BUSINESSES SAID INFLUENCER MARKETING WAS AN EFFECTIVE CAMPAIGN STRATEGY.” THE COLLABORATIONS HAVE A HIGH EXPOSURE RATE WHICH IS CLOSELY LINKED TO THE BUSINESS’ TARGET DEMOGRAPHIC.
ONLINE PRESENCE SINCE THE WARDROBES IS A B2C COMPANY THEN WE WILL FIND GREAT TRACTION WITH IMAGEHEAVY SITES, SUCH AS PINTEREST AND INSTAGRAM. HOWEVER, FACEBOOK AND WEBSITE WILL BE USED AS WELL TO ATTRACT MORE OLDER GENERATIONS AND BUILD A COMMUNITY RESPECTIVELY. FACEBOOK IS ALSO VERY COST EFFICIENT AS ITS ADS ARE RELATIVELY INEXPENSIVE WHEN COMPARED TO OTHER TRADITIONAL METHODS AND FACEBOOK ADS MORE TARGETED. HASHTAGS WILL BE PROMOTED ONLINE AND OFFLINE(#LOOKGOODDOGOOD, #THEWARDROBES_), WHICH GIVES THE BUSINESS A CHANCE TO LINK CUSTOMERS TO THE WARDROBES OWN SOCIAL MEDIA CHANNELS THUS RESULTING IN IMPROVED CLICKTHROUGH RATES. THE WARDROBES ACKNOWLEDGES THE RISING E-COMMERCE AND PLANS TO LAUNCH AN ONLINE STORE IN THE FUTURE.
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INDUSTRY OVERVIEW
AS NEW TRENDS AND CLOTHING COMES INTO OUR LIVES, THE OLD ONES ARE DISCARDED AND THROWN OUT. MEDIA IS ALWAYS FOCUSING ON THE GLAMOROUS ASPECT OF THE FASHION INDUSTRY WITHOUT ACKNOWLEDING HOW MUCH HARM THIS ALL IS DOING TO OUR PLANET. PATRICK GRANT (2018) HIGLIGHTED HOW CLOTHING NOWADAYS HAS NO VALUE“PEOPLE BUY IT AS WITH LITTLE CARE AS THEY BUY A SANDWICH”. HOWEVER “WHILE SUSTAINABLE CLOTHES STILL REMAIN A LOW
PRIORITY FOR MOST PEOPLE, ATTITUDES ARE SLOWLY SHIFTING” (SENDER, 2017) AND THIS CAN BE SHOWN BY THE FACT THAT SUSTAINABLE CONSUMPTION HAS BEEN TRENDING AND SECONDHAND CLOTHING IS GETTING MORE POPULAR EVERY DAY. “CONSUMER BEHAVIOUR IS SHIFTING AND YOUNG PEOPLE ARE DRIVING THE INTEREST IN SUSTAINABLE FASHION” (MINTEL, 2017). “SECONDHAND CLOTHES NOW MAKE UP 6% OF RESPONDENTS’ WARDROBES, DOUBLE THAT OF 10 YEARS AGO, AND THAT PROPORTION COULD ALMOST DOUBLE AGAIN TO 11% BY 2027” (BUTLER, 2018). ACCORDING TO IBISWORLD (2018) IN 2017/18 THE REVENUE FOR SECOND HAND GOODS WAS ABOUT 2 BILLION POUNDS.
PHOTO: PINTEREST
PHOTO: PINTEREST
The Wardrobes WE AS CONSUMERS ARE CONSTANTLY ON THE SEARCH TO MAKE A PROFIT OUT OF OUR UNWANTED ITEMS. THERE IS A VARIETY OF RESELL SITES SUCH AS DEPOP, AMAZON, EBAY, ETC. HOWEVER THESE METHODS REQUIRE A LOT OF YOUR OWN TIME AND EFFORT PUT INTO- YOU ARE RESPONSIBLE FOR ALL YOUR PHOTOGRAPHING, NEGIOTIATING, PACKAGING AND SHIPPING. ONLINE SHOPPING MIGHT BE VERY POPULAR; HOWEVER MOST CUSTOMERS STILL VALUE THE EXPERIENCE OF THE PHYSICAL STORE. A SURVEY HAS SHOWN THAT ONLY “18.2% OF ALL RETAIL SALES IS FROM ONLINE MARKET” (MORLEY, 2018) WHICH SHOWS THAT MOST OF THE SALES STILL COME FROM BRICKS AND MORTAR STORES. THERE IS GAP IN THE INDUSTRY THAT THE WARDROBES PLANS TO TARGET. A CONDUCTED SURVEY SHOWCASED THAT 83% OF RESPONDENTS WOULD BE WILLING TO TRY OUT A SERVICE WHERE THEY CAN RENT OUT A SPACE TO SELL THEIR ITEMS IN.
“ MARKETING STRATEGY
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THE WARDROBES IS A RETAIL SPACE IN THE HIGH STREET ARCADE CATERING FOR INDIVIDUALS WHO APPRECIATE THE IMPORTANCE OF SUSTAINABLE CONSUMPTION. A CONDUCTED SURVEY SHOWCASED THAT PEOPLE HAVE A CERTAIN PERCEPTION OF THE SECONDHAND CLOTHING: UNAPEALLING, NOT FASHIONABLE OR TATTY ARE JUST A FEW DESCRIPTIONS POINTED OUT. OUR MISSION IS TO OFFER A TRENDY ALTERNATIVE TO THE USUAL SECOND-HAND STORES. THE WARDROBES PLANS TO CROSS OUT THAT PERCEPTION WHAT CONSUMERS HAVE AND SHOWCASE THAT SECOND- HAND CLOTHING CAN BE JUST AS STYLISH
USP
AS OTHER RETAILERS IN THE MARKET- CONSUMERS CAN STILL STAY LOYAL TO THE BRANDS THEY TRUST. FURTHERMORE WE WILL BE OFFERING A SERVICE IN- STORE WHICH ALLOWS CUSTOMERS TO MAKE MONEY FROM THEIR UNWANTED ITEMS. SELLING YOUR CLOTHES HAS NEVER BEEN EASIERIT’S TIME TO STOP LETTING YOUR GARMENTS COLLECT DUST AND HELP THEM FIND NEW OWNERS! THE WARDROBES IS A GREAT ALTERNATIVE FOR THOSE ONLINE RESELL SITES WHICH REQUIRE A LOT OF YOUR OWN TIME AND EFFORT PUT INTO IT. WE FOCUSE ON OFFERING PEOPLE A CHANCE TO BE FASHIONABLE WITHOUT HARMING THE PLANET AND BEING MORE SUSTAINABLE THAN ANY OTHER RETAILER IN THE MARKET. LOOK GOOD AND DO GOOD BY SHOPPING AT THE WARDROBES.
PHOTO: THE STYLE STALKER
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MARKET POSITIONING
THIS BUSINESS IS FOCUSED ON FASHION RETAIL SECOND, MORE SPECIFICALLY THE SECOND-HAND/ VINTAGE CLOTHING SECTOR. VENER (2018) HIGLIGHTED HOW “87% OF PEOPLE NOW SAY THEY SHOP AROUND“ AND DIFFERENT RETAILS WILL COMPETE WITH EACH OTHER TO HAVE EXCLUSIVITY ON CERTAIN BRANDS, HOWEVER THE WARDROBES HAS FOUND A WAY TO COMBINE THE BRANDS ALL TOGETHER. THE BUSINESS IS AIMED TO APPEAL TO THE CUSTOMER DEMOGRAPHIC OF 18-40 YEAR OLDS, WHO ARE INTO THE LATEST TRENDS, HOWEVER ARE LOOKING FOR A WAY TO BE FASHIONABLE IN A MORE SUSTINABLE WAY. THE CUSTOMERS ARE FOCUSED ON SUSTAINABLE CONSUMPTION AND THIS BUSINESS MEETS THOSE NEEDS. ORSOLA DE CASTRO (2018) MENTIONED THAT IT SHOULDN’T MATTER WHERE CLOTHES COME FROM- IT MATTERS HOW YOU TREAT THEM. MAJORITY OF THE CLOTHES THAT END UP IN LANDFILL
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CAN BE RECYCLED OR UPCYCLED AND THE WARDROBES PROVIDES CUSTOMERS AN OPPORTUNITY TO MAKE MONEY FROM THEIR UNWANTED ITEMS. WHEN THE CUSTOMER GROUP THINKS OF THE SERVICE, THEY WILL BE THINKING HOW THIS SERVICE IS BENEFICIAL TO THEM- GETTING RID OF THE UNWANTED ITEMS WITH A MINIMAL EFFORT, WHILE STILL PROFITING FROM IT ALL. THE WARDROBES POSITIONS ITSELF AS A RETAIL STORE, WICH GIVES GARMENTS A CHANCE TO STOP COLLECTING DUST AND FIND NEW OWNERS. THE BUSINESS WILL BE A PART OF THE SAME MARKET AS THEIR COMPETITORS, HOWEVER THE WARDROBES OFFERS SOMETHING DISTINCTLY DIFFERENT WITH EXTRA BENEFITS WHICH GIVES US A COMPETITIVE EDGE..
” THE WARDROBES CORE OBJECTIVE IS TO PROMOTE SUSTAINABLE CONSUMPTION AND CIRCULAR ECONOMY IN THE FASHION INDUSTRY.
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OBJECTIVES
PRODUCTIVITY
OBJECTIVES AS A PART OF THE CORE OBJECTIVE WE WILL LOOK TO ACHIEVE THE FOLLOWING, WHICH WILL BE INTRODUCED AND REINFORCED THROUGHOUT THE BUSINESS AND MARKETING PLAN:
ALL THE RESOURCES NEEDED SHOULD BE PROVIDED FOR EMPLOYEES TO REMAIN AS PRODUCTIVE AS POSSIBLETRAINING, SERVICE MANAGEMENT, ETC. COMPETITIVE ANALYSIS SHOULD BE AN ONGOING OBJECTIVE FOR THE BUSINESS. UNDERSTANDING WHERE WE STAND IN THE MARKETPLACE HELPS TO DETERMINE WHAT TO IMPROVE WHICH LINKS TO THE REVENUE.
PHOTO: THE STYLE STALKER
The Wardrobes PROFITABILITY MAINTAINING PROFITABILITY MEANS THAT REVENUE STAYS AHEAD OF THE COSTS OF THE BUSINESS. WHEN SIGNING A CONTRACT, THE CUSTOMER WILL DETERMINE FOR HOW LONG THE BOX WILL BE RENTED FOR WHICH WILL GIVE THE BUSINESS A TIMEFRAME TO WORK WITH AND QUEUE UP A NEW CLIENT SO THAT NONE OF THE PROFITS WOULD BE LOST. THE GOODS SOLD IN THE BOX WILL BE REVIEWED BY THE STORE MANAGER TO MAKE SURE THEY ARE IN A GOOD CONDITION IN ORDER TO MAKE A MAXIMUM PROFIT FOR THE CLIENT VIA THE OFFERED SERVICE. AS POSNER (2015) MENTIONED “BUYERS WILL NATURALLY WANT OR PURCHASE SERVICES AT THE BEST POSSIBLE PRICE AS WELL AS PROFITABLE TRADING TERMS
AND
AGREEMENTS.”
CORE VALUES THE WARDROBES FOCUSES ON OFFERING PEOPLE A CHANCE TO BE FASHIONABLE WITHOUT HARMING THE PLANET AND BEING MORE SUSTAINABLE THAN ANY OTHER RETAILER IN THE MARKET.
MARKETING ADVERTISING DOES PLAY AN IMPORTANT PART IN THIS BUSINESS HOWEVER WHAT WE VALUE THE MOST IS THE CUSTOMER’S INPUT. WE WANT TO UNDERSTAND THEIR BUYING TRENDS AND BE ABLE TO ANTICIPATE THEIR PRODUCT DISTRIBUTION NEEDS WHILE DEVELOPING BUSINESS PARTNERSHIPS THAT WILL HELP THE WARDROBES TO IMPROVE THE MARKET SHARE.
CUSTOMER SERVICE GREAT CUSTOMER SERVICE HELPS TO RETAIN CLIENTS AND GENERATE REPEAT REVENUE. EXTRA SERVICES, SUCH AS STYLING WILL IMPROVE THE QUALITY OF SHOP EXPERIENCE. KEEPING THE CUSTOMERS HAPPY IS GOING TO BE ONE OF THE PRIMARY OBJECTIVES FOR THIS BUSINESS. HASHTAGS WILL BE PROMOTED (#LOOKGOODDOGOOD, #THEWARDROBES_), WHICH GIVES THE BUSINESS A CHANCE TO LINK CUSTOMERS TO THE WARDROBES OWN SOCIAL MEDIA CHANNELS THUS RESULTING IN IMPROVED CLICKTHROUGH RATES.
SERVICES PROVIDED 26 AND PRICING STRATEGY
THE WARDROBES OFFERS CLIENTS A CHANCE TO RENT OUT A BOX (A CLOTHING RAIL WITH 20 HANGERS) FOR A CERTAIN PERIOD (3-6 MONTHS) TO SELL THEIR CLOTHING IN. CLIENTS SET THEIR OWN PRICES AND 100% OF THE PROFITS GO TO THEM. THE RENT OF THE BOX WILL BE £80 PER WEEK AND £40 FOR AN ACCESSORIES STAND WHICH WILL BE PAID AT LEAST A WEEK IN ADVANCE OR MORE IF THE CLIENT PREFERS. THE PROFITS FROM CAN BE COLLECTED MONTHLY OR AT THE END OF THE TENACY. THE BUSINESS WILL BE OPERATING A “REFER A FRIEND” SYSTEM WHERE, THE CLIENT (WHO GETS A FRIEND TO RENT A BOX) IS ENTITLED TO A 20% OFF RENT ON THE NEXT WEEK. THIS STRATEGY BUILDS LOYALTY WITH NEW CUSTOMERS FROM THE BEGINNING, WHICH
IS VERY IMPORTANT NOWADAYS. THE FACT THAT ALL THE CLIENTS KEEP 100% OF THE MADE PROFITS IS SOMETHING THAT WOULD MAKE THE PRICE FOR THE RENTED BOX SEEM LOWER THAN EXPECTED. ONCE THE CONTRACTS ARE SIGNED, THE CLIENTS WILL BE ALLOCATED A TIME SLOT FOR A SUNDAY WHERE THEY WOULD BRING IN THE PRODUCTS AND SET THEM UP IN A FAVOURED WAY WITHOUT INTERRUPTING THE STORE TRADING HOURS. FOR THE CLIENTS SHOPPING IN-STORE, SALES ADVISORS WILL BE TRAINED TO OFFER STYLING SERVICES TO PROMOTE THE “MIX AND MATCH” OF DIFFERENT BRANDS FROM A VARIETY OF BOXES, WHICH WILL HELP TO SECURE MORE SALES. THE SOCIAL MEDIA CHANNELS PROVIDE OUR FOLLOWERS WITH LATEST STYLING TIPS AND TREND INSPIRATIONS, IN ADDITION TO THE PHOTOS OF THE LATEST GARMENTS WHICH HAVE LANDED IN- STORE.
TARGET CONSUMER
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THE WARDROBES TARGETS CONSUMERS 18 TO 40 YEARS OLD, WHO ARE A MIX OF STUDENTS AND PROFESSIONALS. THEY DON’T HAVE A LOT OF MONEY TO SPEND BUT WANT TO SPEND IT WELL. THE TARGET CONSUMERS ARE LIVING IN THE CITY CENTRE, HOWEVER IN THE LONG RUN, THEY CAN SEE THEMSELVES SETTLING DOWN OUTSIDE THE CITY. IN THEIR FREE TIME THESE INDIVIDUALS LIKE TO KEEP UP TO DATE WITH THE LATEST NEWS AND THEY ENJOY
ON OUR PLANET AND THEY LIKE TO FIND A WAY TO MINIMIZE THEIR PART IN THAT. THESE CUSTOMERS USUALLY HAVE A “DESTINATION SHOP” WHERE THEY CAN GET EVERYTHING THEY NEED IN ONE
READING ABOUT CULTURAL AND ENVIRONMENTAL ISSUES. DUE TO THEIR BUSY SCHEDULES THEY SEE SHOPPING AS A LEISURE ACTIVITY TO SPEND TIME WITH THEIR FRIENDS. THESE CONSUMERS CARE FOR THE ELEMENTS THEY RECEIVE WHEN COMMITTING TO A PURCHASEADDED VALUE, INTANGIBLE BENEFITS, EMOTIONAL BENEFITS, ETC. THE TARGET CONSUMERS ARE AWARE OF THE DAMAGE THAT THE FASHION INDUSTRY IS CAUSING
GO. ONCE THEY FIND A STORE THEY LIKE, THEY WILL BECOME LOYAL CUSTOMERS. WHEN THEIR CLOSET NEEDS REFRESHING THEY TEND TO USE DIFFERENT RESELL SITES IN ORDER TO GIVE THEIR GARMENTS A NEW HOME. HOWEVER DUE TO THEIR BUSY SCHEDULES, MOST OF THE GARMENTS END UP COLLECTED SOMEWHERE IN THE HOUSEHOLD, SINCE CURRENT RESELL SITES REQUIRE A LOT OF THEIR VALUABLE TIME.
PHOTO: THE STYLE STALKER
“ LOOK GOOD AND DO GOOD BY SHOPPING AT THE WARDROBES.
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SWOT
WEAKNESSES LACK OF PRODUCTS
CONTROL OVER (CLIENT CHOOSES
WHAT TO SELL), A NEW BUSINESS,
STRENGTHS AN UNIQUE IDEA, SUSTAINABILE CONSUMPTION TRENDING, EASILY ACCESSIBLE RETAIL SPACE (CITY CENTRE PRESENCE), LARGE TARGET AUDIENCE, SOCIAL MEDIA PRESENCE, VARIATION IN CLOTHING STYLES AND TRENDS, TIME CONSUMING FOR CONSUMERS, EXTRA SERVICES SUCH AS STYLING IN- STORE.
LIMITED DISTRIBUTION NETWORK
OPPORTUNITIES COLLABORATIONS WITH INFLUENCERS AND START- UP BRANDS, VISUAL MERCHANDISING, ADVERTISEMENT ON DIFFERENT PLATFORMS AND SOCIAL MEDIA.
THREATS
POPULAR ONLINE SHOPPING AND RISING M-COMMERCE IN ADDITION TO VERY POPULAR FAST FASHION.
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7PS
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PRODUCT THE SERVICE OFFERED IS SUITABLE FOR A LARGE AUDIENCE- POSNER (2015) POINTED OUT HOW “AN INCREASING NUMBER OF CONSUMERS CHOOSE VINTAGE AS A WAY TO MAKE A FASHION STATEMENT, STAND OUT FROM THE CROWD, SAVE MONEY OR BE MORE SUSTAINABLE AND CONSUME LESS” . THE STORE WILL BE REFERRED TO AS THE WARDROBES, SINCE IT WILL FEATURE A VARIETY OF BOXES FILLED WITH GARMENTS FROM DIFFERENT ‘WARDROBES’. A POTENTIAL CLIENT IS EITHER INTERESTED IN RESELLING GARMENTS OR LIKES TO SHOP AT VINTAGE STORES. THE BUSINESS GIVES CLIENTS A CHANCE TO MAKE MONEY BY RENTING A BOX TO SELL THEIR ITEMS IN- IT COMES WITH HANGERS AND LABELS PROVIDED, SO ALL THE CLIENTS HAVE TO DO IS BRING IN THE ITEMS AND PRICE THEM. THE COMPETITORS ARE NOT
OFFERING ANYTHING SIMILAR IN THE MARKET- THE WARDROBES MAKES SELLING ITEMS EASIER FOR CUSTOMERS SINCE THEY DON’T HAVE TO NEGOTIATE, PACKAGE OR SHIP IN ORDER TO MAKE A SALE. THE WARDROBES WILL MAKE SURE THE ITEMS ARE IN GOOD CONDITIONNO RIPS, STAINS, HOLES, ETC. A PURCHASE WILL SATISFY ALL PARTIES INVOLVEDBUSINESS HAS A CHANCE TO PROMOTE SUSTAINABLE CONSUMPTION, CONSUMERS WILL GET RID OF THEIR UNWANTED ITEMS WITH A PROFIT AND THE CLIENT WILL BENEFIT FROM A NEW GARMENT. AS POSNER (2015) MENTIONED “CONSUMERS PURCHASE BENEFITS AND EMOTIONAL MEANING” AND SHOPPING AT THE WARDROBES ALLOWS YOU TO LOOK GOOD, WHILE DOING GOOD.
The Wardrobes PRICE CUSTOMERS WILL PAY THE RENT FOR THE BOX IN ORDER TO HAVE THEIR ITEMS SOLD IN- STORE. COMPETITORS PRICES (10%
PLACE CUSTOMERS WHO ARE INTERESTED IN RESELLING THEIR ITEMS WILL LOOK FOR THE SERVICE OFFERED VIA ONLINE PLATFORMS WHICH WILL INFORM THEM ABOUT THE EXISTANCE OF THE RETAIL SPACE IN CITY CENTRE. CHECKOUT.COM (2018) SURVEY SHOWCASED THAT 16-29 MIGHT BE ALWAYS ON THEIR PHONES HOWEVER “THIS DIGITALLYSAVVY BUNCH STILL ENJOYS THE PHYSICAL SHOPPING EXPERIENCE OF GOING IN-STORE.” THE ARCADE IS EASILY ACCESSIBLE FOR ALL POTENTIAL CUSTOMERS. THE AVERAGE SHOPPERS, WHO TEND TO HAVE A DESTINATION SHOP OR JUST VISIT THE ARCADES TO FIND VINTAGE SHOP, WILL HAVE HEARD ABOUT THE STORE VIA WOM (WORD OF THE MOUTH) OR SEEN THE SPACE IN THE ARCADES BEING TRANSFORMED INTO SOMETHING NEW AND EXCITING.
COMISSION ON AVERAGE) MAY BE LOWER, HOWEVER IN THE LONG RUN CUSTOMERS USING THE WARDROBES SERVICE WILL HAVE A CHANCE TO EARN MORE WITH LESS EFFORT- A BOX CAN FIT 20 ITEMS. AS POSNER (2015) POINTED OUT “CONSUMERS INCREASINGLY DEMAND MORE IN TERMS OF VALUE”. THERE ARE NO HIDDEN COSTS AND THE CLIENTS SHOULD SEE IT AS A BENEFICIAL DEAL, SINCE THE EXPERIENCE IS MORE HASSLE- FREE: NO NEGOTIATING, PACKAGING, SHOPPING, ETC. THE PRICES IN THE BOX ARE SET BY THE BOX OWNERS, HOWEVER SINCE THE END GOAL IS TO GET RID OF ITEMS, THE PRICES SHOULD BE LOWER THAN AVERAGE RETAILERS THUS MAKING IT MORE APPEALING TO CUSTOMERS. IF A BOX IS NOT SELLING AS WELL AS HOPED FOR, THE BUSINESS WILL MAKE A SUGGESTION TO THE OWNER TO LOWER THE PRICES IN ORDER TO INCREASE PROFITS.
PHOTO: THE STYLE STALKER
The Wardrobes PEOPLE THIS BUSINESS RELIES HEAVILY ON HUMAN RESOURCES- SALES ADVISORS, THE CLIENTS RENTING THE BOXES AND SHOPPERS INSTORE. BUILDING UP A LOYAL CUSTOMER DATABASE WILL BE THE INTELLECTUAL PROPERTY RESOURCE THAT THE BUSINESS WILL BENEFIT FROM. SALES ADVISORS WILL BE VERY IMPORTANT SINCE THEY WILL HAVE A DIRECT CONTACT WITH A POTENTIAL CUSTOMER. IT IS IMPORTANT TO HIRE AND TRAIN THE RIGHT PEOPLE. PRESTON (2017) HIGLIGHTED THAT IF THE STAFF ARE HAPPY, THE BUSINESS CAN BENEFIT FROM IT AS WELL: “HAPPY EMPLOYEES ARE UP TO 20% MORE PRODUCTIVE THAN UNHAPPY EMPLOYEES. WHEN IT COMES TO SALESPEOPLE, HAPPINESS HAS AN EVEN GREATER IMPACT, RAISING SALES BY 37%”. BUILDING LOYALTY IS ALSO BENEFICIAL FOR THE BUSINESS TO GROW, SINCE CLIENTS/ STAFF WILL BE MORE OPEN TO HONEST FEEDBACK ABOUT THE BUSINESS AND WILL TRY TO INPUT THEIR OWN THOUGHTS AND PASSIONS.
PROMOTION PROMOTIONAL ACTIVITIES USED WILL INCLUDE ADVERTISING AND DIRECT MARKETING. ALL THE CONTENT WILL BE THOUGHT- OUT AND PLANNED ACCORDINGLY IN ORDER TO MAKE THE SOCIAL MEDIA FEED LOOK AS APPEALING AS POSSIBLE AS “ATTRACTIVENESS IS A SUCCESS FACTOR WHEN IT COMES TO CREATING INTEREST AND PROMOTING USER MOTIVATION” (SPIES, 2015). PEOPLE WILL BE PERSUADED TO TRY OUT THE SERVICE TO MAKE MONEY FROM THEIR UNWANTED ITEMS WHILE SAVING TIME. NEW GARMENT PHOTOS, FLATLAYS, CUSTOMER PHOTOS WILL BE USED DAILY TO PROMOTE THE PRODUCTS AVAILABLE IN STORE ALONGSIDE WITH THE SERVICE OFFERED (THE RENT OF THE BOX). THE COMPETITORS HAVE ONLY AN ONLINE PRESENCE HOWEVER THE WARDROBES WILL TAKE INTO CONSIDERATION THE IMPORTANCE OF THE PHYSICAL SPACE.
The Wardrobes
PROCESS ONLINE CHANNELS AND THE RETAIL SPACE WILL DELIVER THE PRODUCT TO THE CUSTOMER. THE
PHYSICAL EVIDENCE PROFITABILITY SIDE WILL MAKE THE SERVICE WILL BE DELIVERED IN THE RETAIL PREMISES WHERE THE BUSINESS AND THE CUSTOMER INTERACT. THE WARDROBES PLANS TO BE MORE APPEALING AND INVITING, THAN AN AVERAGE SECONDHAND STORE. WINDOW DISPLAY AND STORE INTERIOR ARE IMPORTANT EVIDENCE AS IT SHOULD CAPTURE CUSTOMERS AND MAKE THE SHOPPING TRIP TO A SECOND HAND STORE FEEL EXCITING AGAIN. PACKAGING IS ALSO AN IMPORTANT KEY ELEMENTIN ADDITION TO BEING A GREAT WALKING ADVERTISEMENT IT IS ALSO AN EFFICIENT WAY TO BUILD LOYALTY. THE DESIGNED PAPER SHOPPING BAGS (10P A BAG) PROVIDE A SOPHISTICATED VISUAL IDENTITY. HOWEVER WE WILL ENCOURAGE PEOPLE TO COME SHOPPING WITH THEIR OWN BAGS IN ORDER TO PROMOTE THE SUSTAINABLE CONSUMPTION.
THE CUSTOMER MORE INTRIGUED IN THE IDEA AND LESS HESITANT TO TEST IT OUT THEMSELVES. PROCESS IS A POTENT TOOL TO BUILD CUSTOMER LOYALTY AND ENSURE THEIR RETENTION. THE WARDROBES PLANS TO REVIEW THE PROCESS THROUGH THE CUSTOMER PERSPECTIVE WHICH CAN BE MORE EFFICIENT FOR THE COMPANY. FEEDBACK FORMS AFTER THE USE OF THE SEVICE WILL PROVIDE CUSTOMERS AN OPPORTUNITY TO GIVE FEEDBACK IN ORDER FOR THE WARDROBES TO IMPROVE THE SERVICE OFFERED. IMPORTANT FACTOR FOR RUNNING THE BUSINESS IS ALSO REVIEWING THE SALES AND FINANCIAL REPORTS REGULARLY. IN THE FIRST FEW MONTHS SUNDAYS WILL NOT BE TRADING DAYS, HOWEVER IF THE REPORTS SUGGEST OTHERWISE THEN TWEAKING THE HOURS CAN MAXIMISE THE BUSINESS PROFITS.
PHOTO: THE STYLE STALKER
PHOTO: THE STYLE STALKER
AIDA
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AWARENESS ONLINE PR IS ONE OF THE MOST COST-EFFECTIVE APPROACHES FOR THIS BUSINESS. PPC ADVERTISING (GOOGLE ADS) WILL BE USED, WHICH IS A WAY FOR THE BUSINESS TO BUY VISITS TO THE PLATFORMS RATHER THAN “EARNING” THEM ORGANICALLY. WE WOULD BID ON THE KEYWORDS “RESELL YOUR CLOTHES” SO WHEN SOMEONE SEARCHES FOR THOSE KEYWORDS, THEN THE WARDROBES MIGHT POP UP FIRST ON THE GOOGLE RESULTS PAGE. THE MARKETING MATERIALS ON DIFFERENT PLATFORMS WILL MAKE CUSTOMERS AWARE OF THE OPPORTUNITY TO SELL THEIR CLOTHING IN- STORE. A PROMOTIONAL CAMPAIGN WILL RUN TWO MONTHS PRIOR TO LAUNCH, TO PROMOTE THE AVAILABLE BOXES, SUSTAINABLE CONSUMPTION AND THE CIRCULAR ECONOMY. THE MESSAGES WILL SHOWCASE HOW EASY THE PROCESS IS- THE WARDROBES WILL GIVE YOU AN OPPORTUNITY TO
MAKE A PROFIT WHILE SOMEONE ELSE CAN BENEFIT FROM YOUR UNWANTED ITEMS- WIN- WIN SITUATION FOR EVERYONE. AFTER THE STORE IS OPENED, THERE WILL BE A VARIETY OF POSTS EVERY FEW DAYS WHICH WILL GET PEOPLE TO THINK ABOUT THE BUSINESS MORE THAN THEY EXPECT. AWARENESS WILL ALSO BE RAISED WITH DIFFERENT PROMOTIONAL MATERIALS. A COMPANY CALLED DIABOLICAL, WILL BE USED AS IT “IS THE FIRST AND ONLY AGENCY TO RUN AN AUTHORISED FLYPOSTING SCHEME IN THE UK” (DIABOLICAL, 2019) AND THEY ARE GREAT FOR HIGH FREQUENCY STREET LEVEL CAMPAIGNS. GUERILLA MARKETING WOULD WORK TO OUR ADVANTAGE FOR THE FIRST FEW MONTHS AS WELL WHICH IS COST EFFECTIVE AND EASY TO EXECUTE, BUT JUST EFFECTIVE AT GETTING THE POINT ACROSS.
The Wardrobes INTEREST STORYTELLING VIA SOCIAL MEDIA ALLOWS US TO SHOW OUR STORY AND CONNECT WITH A VARIETY OF CONSUMERS. SINCE WE PLAN TO TARGET AUDIENCES 18+ THEN WE KNOW THAT THEY WILL BE LOOKING POSITIVE EXPERIENCES VIA ONLINE PLATFORMS AND THEIR FAVOURITE INFLUENCERS. AN INSTAGRAM DM CAMPAIGN WILL BE USED TO GET INFLUENCES TO SELL THEIR ITEMS IN STORE. WE WILL LET THEM SHOWCASE HOW EASY THE PROCESS IS- HOW A CUSTOMER KEEPS 100% OF THE PROFITS, HOW EASILY ACCESSIBLE THE STORE IS IN ADDITION TO SHOWING OFF THE INTERIOR. “INSTEAD OF MERELY PUSHING THEIR MESSAGES ONTO AUDIENCES, BRANDS NOW RELY ON THEIR CUSTOMERS TO BECOME ACTIVE PARTICIPANTS AND SHARE THEIR RESPECTIVE STORIES” (BENDONI, 2017). INTEREST FOR THE ARCADE CUSTOMERS WILL BE GAINED BY THE VISUAL MERCHANDISING IN THE WINDOWS AND IN- STORE.
PHOTO: RUBY ORTIZ
The Wardrobes
DESIRE THE WARDROBES WILL AIM TO HAVE A FAST RESPONSE RATE ON SOCIAL MEDIA PLATFORMS. WE WILL SHARE FASHION TIPS WITH OUR CUSTOMERS ON HOW TO STYLE AND WEAR DIFFERENT PRODUCTS AND SHOW OFF NEWLY ADDED GARMENTS. THE BUSINESS WILL PROMOTE THAT IF CUSTOMERS CHOOSE TO SELL THEIR ITEMS IN THE WARDROBES, 100% OF THE PROFITS THEY MAKE WILL BE THEIRS. NO SIGN UP FEE OR COMISSION, JUST THE RENT OF THE BOX. NEW LOCAL BRANDS WILL DESIRE TO BE PRESENT IN THE CITY CENTRE WITH NO LONG TERM COMMITMENT AND THIS BUSINESS AND THE SERVCE OFFERED WILL GIVE THEM THAT OPPORTUNITY.
RETENTION LOYALTY WILL BE RETAINED BY HAVING A COMMUNITY ON OUR WEBSITECUSTOMERS HAVE A CHANCE TO SHARE THEIR EXPERIENCES AND THEIR PHOTOS WHICH CAN BE USED AS PROMOTIONAL MATERIAL ON OUR SOCIAL PLATFORMS. WE WILL BE DOING A WEEKLY BLOG ON OUR WEBSITE EVERY SUNDAY WHICH WILL INFORM THE READERS EVEN MORE ABOUT SUSTAINABLE CONSUMPTION AND SHARE THE LATEST STYLING TIPS, ETC.
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BUSINESS MODEL CANVAS
The Wardrobes
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MARKETING TOOLS
BENDONI (2017, P. 7) MENTIONS IN HIS BOOK HOW “SOCIAL MEDIA IS NOW THE PRIMARY AVENUE FOR CONSUMERS TO DISCOVER THE LATEST STYLES,TRENDS,AND TOPICS OF INTEREST”. “AT THE BEGINNING OF 2017, THE TOTAL NUMBER OF SOCIAL MEDIA USERS IN THE UK HAD REACHED OVER 39 MILLION USERS, WITH ESTIMATES GOING UP TO 42 MILLION USERS“(STATISTA, 2018B). THE RISE OF DIFFERENT SOCIAL MEDIA CHANNELS IS HUGE AND SHOULD BE TAKEN ADVANTAGE OF. MCKINSEY (2018) HIGHLIGHTS HOW “CONSUMERS WILL INCREASINGLY LOOK TO ONLINE PLATFORMS AS THE FIRST POINT OF SEARCH, ATTRACTED BY THEIR CONVENIENCE, RELEVANCE AND BREADTH OF OFFERING. “ IT IS IMPORTANT TO SELECT THE RIGHT SOCIAL MEDIA PLATFORMS IN ORDER TO CAPTURE THE ATTENTION OF THE INTENDED TARGET AUDIENCE. IN THE FOLLOWING PAGES THE MAIN
SOCIAL MEDIA CHANNELS WILL BE DISCUSSED TO MAKE THE WARDROBES A SUCCESS. IN ADDITION TO THE FOLLOWING PLATFORMS, HOOTSUITE AND PLANN WILL BE USED AS WELL IN ORDER TO KEEP THE SOCIAL MEDIA UPDATED AT ALL TIMES. HOOTSUITE (2019) WILL ALLOW TO SCHEDULE SOCIAL MEDIA UPDATES FOR CONVENIECE“AUTOSCHEDULE ANALYZES USERS’ SOCIAL ACTIVITY AND THEIR FOLLOWERS’, AUTOMATICALLY DELIVERING EACH MESSAGE AT AN OPTIMAL TIME IN ORDER TO MAXIMIZE REACH AND AVOID SWAMPING FOLLOWERS WITH TOO MANY UPDATES AT ONCE”. THIS WOULD SAVE TIME TO FOCUS ON THE OTHER ASPECT OF THE BUSINESS. PLANN IS AN APP WHICH LETS YOU PERSONALISE YOUR INSTAGRAM FEED AND WILL BE VERY BENEFICIAL FOR THE WARDROBES SEEING AS THE VISUAL ASPECT OF THE BUSINESS WILL BE VERY IMPORTANT AND THIS APP WILL HELP TO MAXIMISE THE INSTAGRAM PROFILE WITH THE PRODUCED CONTENT.
WEBSITE
ALL OF THE SOCIAL MEDIA WILL BE LINKING UP TO A WEBSITE WHICH IS AN IMPORTANT ASSET TO THE BUSINESS AS IT WOULD ALLOW CUSTOMERS TO BOOK A BOX ONLINE AND READ MORE ABOUT OUR STORY. HAVING A WEBSITE MEANS THAT POTENTIAL CUSTOMERS ARE ALWAYS ABLE TO FIND US AND READ ABOUT HOW THE SERVICE WORKS. THE WEBSITE WILL ALSO FEATURE A BLOG SECTION, WHERE WE WILL BE DISCUSSING THE BENEFITS OF SECOND- HAND SHOPPING, SUSTAINABLE CONSUMPTION AND SHARING THE LATEST STYLING TIPS. IT WILL BE LIKE A COMMUNITY FOR LIKEMINDED INDIVIDUALS TO COME TOGETHER AND A VERY USEFUL SOURCE FOR THE BUSINESS- “COMMUNITIES ARE A WONDERFUL WAY FOR COMPANIES
TO UNDERSTAND THEIR CONSUMERS, GET INSIGHTS INTO THEIR HABITS, PERSPECTIVES AND CREATE A PLATFORM IN WHICH CUSTOMERS CAN GET TOGETHER AND SHARE KNOWLEDGE AND EXPERIENCES “(ANASTASIA, 2015). PPC AND ONLINE AWARENESS WILL HELP THE WARDROBES TO BUILD AWARENESS AND INCREASE THE TRAFFIC TO THE WEBSITE.
THIS PLATFORM WILL BE USED AS ONE OF THE MARKETING TOOLS DUE TO THE HIGH USER ENGAGEMENT RATE AND THE APP’S VISUAL NATURE. STATISTA (2018) HAS SHOWCASED HOW THE UK HAS 23 MILLION MONTHLY ACTIVE USERS ON THIS CERTAIN PLATFORM. 15-24 YEAR OLDS ARE THE MAIN USERS FOLLOWED BY THE 25-34 YEAR OLDS (STATISTA, 2018) WHICH ARE EXACTLY THE KIND OF AUDIENCES THE WARDROBES SHOULD BE APPEALING FOR. “INSTEAD OF MERELY PUSHING THEIR MESSAGES ONTO AUDIENCES, BRANDS NOW RELY ON THEIR CUSTOMERS TO BECOME ACTIVE PARTICIPANTS
AND SHARE THEIR RESPECTIVE STORIES” (BENDONI, 2017, P. 31) AND BY PROMOTING HASTAGS (#LOOKGOODDOGOOD #THEWARDROBES_) THE BUSINESS HAS A CHANCE TO CONNECT MORE WITH THEIR CUSTOMERS. BENDONI (2017, P. 40) MENTIONS HOW “STORY TELLING IS A VITAL TOOL FOR CONTENT MARKETING THAT ALLOWS BRANDS TO TAKE CONSUMERS ON A JOURNEY THAT WILL RELAY INSIGHTS AND FORGE STRONGER CONNECTIONS.” INSTAGRAM STORIES WILL BE GREAT FOR CONNECTING WITH CONSUMERS WHILE SHARING THE STORY OF THE WARDROBES. THE FEED WILL BE GREAT TO INTERACT WITH CUSTOMERS VIA DIFFERENT IMAGES AND INTERESTING FACTS. “NOWADAYS CONSUMERS EXPECT TO BE ABLE TO HAVE A DIALOGUE WITH THE BRANDS THEY ASPIRE TO, WITHOUT BEING JUDGED FOR WHETHER THEY ARE GOING TO ACTUALLY BUY SOMETHING” (BENDONI, 2017, P. 42) AND THAT’S EXACTLY WHAT OUR NEWSFEED IS PLANNING TO DO.
FACEBOOK THIS IS GREAT TO ATTRACT OLDER AUDIENCES. THE CUSTOMER INSIGHTS ALLOW THE BUSINESS TO DELIVER MORE MEANINGFUL MESSAGES. FACEBOOK INSIGHTS ALLOWS TO LEARN MORE ABOUT TARGET AUDIENCES, INCLUDING AGGREGATE INFORMATION ABOUT GEOGRAPHY, DEMOGRAPHICS, PURCHASE BEHAVIOR AND MUCH MORE. FACEBOOK REVIEWS WILL BE AN IMPORTANT PART TO BUILD UP LOYALTY AMONG MY POTENTIAL CLIENTS- IFTHEYSEE GOOD REVIEWS THEY ARE MORE THAN LIKELY TO RECOMMEND THE BUSINESS TO THEIR FRIENDS. THIS SOCIAL PLATFORM ALLOWS TO ORGANISE A GIVEAWAY WHICH CAN INCLUDE COMBINING THE OFFLINE STORE WITH THE ONLINE ONE- A GREAT ADVANTAGE TO GET MORE CUSTOMERS INTO THE RETAIL SPACE. FACEBOOK IS ALSO VERY COST EFFICIENT FOR A BUSINESS TO USE AS ITS ADS ARE RELATIVELY INEXPENSIVE WHEN COMPARED TO OTHER TRADITIONAL METHODS AND ARE MORE TARGETED.
THIS WILL BE A VALUABLE SOURCE FOR THE BUSINESS SINCE IT WILL ALLOW TO “MAKE IT EASY TO MONITOR TRENDS” POSNER (2015, P. 67). ON THIS WEBSITE THE WARDROBES HAS A CHANCE TO SHARE THEIR OWN CONTENT AND ALSO GET INSPIRATION FOR THE STORE DESIGN/ STYLING TIPS. “90% OF PEOPLE IN A RECENT STUDY SAID PINTEREST GIVES THEM IDEAS ABOUT WHICH PRODUCTS TO PURCHASE“ (VENER, 2018) AND THE WARDROBES PLANS TO UTILISE THIS PLATFORM TO ITS FULLEST. PINTEREST IS AN EXCELLENT TOOL TO HELP INCREASE LINKS BACK TO OUR WEBSITE, WHICH, IN TURN, DRIVES MORE TRAFFIC. WE WILL BE SHARING OUR FLAYTLAYS WITH OUR FOLLOWERS IN ADDITION TO CREATING FASHION AND INTERIOR INSPIRATION MOODBOARDS/ PINS. ALL OF OUR CREATED AND SHARED CONTENT WILL BE LINKED TO OUR WEBSITE, WHICH THE AUDIENCE CAN FOLLOW, IF THEY LIKE WHAT THEY SEE.
PHOTO: THE STYLE STALKER
“ PROMOTIONAL STRATEGY
OVERVIEW
IN ORDER FOR THE WARDROBES TO BE A SUCCESSFUL BUSINESS, A GREAT PROMOTIONAL STRATEGY IS VITAL. NO ONE IS GOING TO BUY THIS SERVICE IF THEY HAVEN’T HEARD OF IT. AS MENTIONED BEFORE SOCIAL MEDIA IS GOING TO BE AN IMPORTANT PART OF MY MARKETING AND IT IS THE SAME FOR THE PROMOTIONAL STRATEGY. DIRECT MARKETING VIA FACEBOOK AND INSTAGRAM HAS NEVER BEEN EASIER. DIFFERENT PLATFORM GIVE AN OPPORTUNITY TO CONNECT WITH PEOPLE ON A MORE PERSONAL LEVEL. INSTAGRAM IS ALL ABOUT SHARING YOUR OWN PERSONAL STORY WITH THE WARDROBES WHILE FACEBOOK LOOKS MORE INTO SEEING YOUR FRIEND’S EXPERIENCES WITH THE BUSINESS. WILBERG (2018) HIGLIGHTS HOW “84% OF MILLENNIALS ARE LIKELY TO BE INFLUENCED INTO MAKING A PURCHASE BASED ON THE USER-GENERATED CONTENT BY STRANGERS WHO HAVE
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EXPERIENCED THE PRODUCT OR SERVICE“ AND THE WARDROBES IS GOING TO USE THAT TO THEIR ADVANTAGE. THE STORY TELLING WILL ALLOW THE BUSINESS TO GET IN TOUCH WITH THE CUSTOMERS MORE RATHER THAN SEEING IT AS “TRYING TO SELL“ SOMETHING WHICH CAN MAKE THE IDEA OF THE BUSINESS MORE APPEALING AND FAMILIAR FOR POTENTIAL CUSTOMERS. THERE SHOULD BE POSTS DAILY HOWEVER THE CONTENT ON DIFFERENT PLATFORMS SHOULD VARY. THE WARDROBES IS REALLY GOING TO HIGHLIGHT THE FACT SUSTAINABLE CONSUMPTION IS IN AND IF YOU ARE NOT INTERESTED IN YOUR OLD CLOTHING ANYMORE, THEN PERHAPS SOMEONE ELSE CAN BENEFIT FROM IT.
The Wardrobes
THE CUSTOMER REFERRAL INCENTIVE PROGRAM IS A GREAT WAY TO ENCOURAGE CURRENT CUSTOMERS TO REFER NEW CUSTOMERS TO YOUR STORE. REFERRING A FRIEND WOULD GET CUSTOMERS -20% OFF ON THE BOX RENT FOR THE NEXT WEEK. BUILDING UP LOYALTY WITH A STRONG BASE IS VERY IMPORTANT, SINCE IF THOSE PEOPLE HAVE A GREAT FIRST EXPERIENCE THEY ARE MORE LIKELY TO COME BACK AND RECOMMEND THE STORE TO THEIR
FRIENDS. A COLLABORATION WITH A INFLUENCER WILL BE POWERFUL AS WELL- THEY WILL HAVE A CHANCE TO SELL THEIR CLOTHING IN- STORE FOR FREE AND IN RETURN THEY WILL PROMOTE IT ON THEIR SOCIAL MEDIA. “GENERATING A WIDER CONVERSATION AROUND YOUR BRAND IS IMPORTANT AND ONE REASON WHY MANY FASHION BRANDS HAVE INCORPORATED INFLUENCER MARKETING INTO THEIR DIGITAL STRATEGIES. THE INFLUENCER ECONOMY OF INSTAGRAM ALONE IS VALUED AT $1 BILLION AND 94% OF BUSINESSES SAID INFLUENCER MARKETING WAS AN EFFECTIVE CAMPAIGN STRATEGY” AS WILBERG (2018) HIGHLIGHTED.
PHOTO: PINTEREST
PHOTO: THE STYLE STALKER
“ “SECOND HAND ALSO LOOSEN THE GRIP OF ADVERTISING AND CORPORATIONS ON SHAPING STYLE AND IDENTITY, AND CAN RECONNECT US TO THE JOY OF WEARING CLOTHES AND PASSING THEM ON” FASHION REVOLUTION (2019)
PHOTO: THE STYLE STALKER
PROMOTIONAL MIX
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ADVERTISEMENT THE BUSINESS WILL BE WORKING TOGETHER WITH INFLUENCERS TO PROMOTE THE RETAIL STORE AS THIS KIND OF AN INFLUENCE IS VERY IMPORTANT TO OUR MAIN AUDIENCE. “OVER HALF OF WOMEN MADE PURCHASES DUE TO INFLUENCER POSTS “ (KNIGHTLEY, 2018). SOCIAL MEDIA WILL BE USED IN ADDITION TO PROMOTE THE SERVICE EVEN FURTHER. DURING THE FIRST FEW MONTHS GUERILLA MARKETING WILL BE A GREAT WAY TO RAISE BRAND AWARENESS AMONG LARGE AUDIENCES WITHOUT INTERRUPTING THEM. IT IS PERFECT TO SATISFY “CUSTOMERS’ APPETITE FOR THE BUZZ OF THE NEWNESS WHILE AT THE SAME TIME PROTECTING BUSINESSES FROM THE COSTS OF LONG- TERM INVESTMENT” (POSNER, 2015, P. 102). WILBERG (2018) POINTS OUT HOW “MILLENNIALS ARE THOUGHT TO BE LESS TRUSTING OF TRADITIONAL FORMS OF ADVERTISING” AND GUERILLA MARKETING IS A GREAT ALTERNATIVE. BY USING
A COATHANGER ON THE STREET WITH CLOTHES OVERFLOWING TO PROMOTE THE EXCESSIVE CLOTHES, THE WARDROBES WILL BE ADVERTISED TO GET RID OF YOUR UNWANTED ITEMS. PEER MARKETING WILL WORK TO OUR ADVANTAGE AS WELL- WHEN SOMEONES HAS HAD A GREAT EXPERIENCES THEY ARE MORE THAN LIKELY TO RECOMMEND THE BUSINESS TO THEIR FREINDS. DIGITAL ADVERTISING WILL BE USED TO REACH FOR CUSTOMERS ON DIFFERENT SITES. THE MARKETING STRATEGY WILL BE CRAFTED MORE TOWARDS SMARTPHONES, DUE TO THEIR POPULARITY- OFCOM (2018) SHOWS THAT 78% OF PEOPLE ACCESS THE INTERNET VIA THEIR SMARTPHONES. USING A VARIETY OF SOCIAL MEDIA PLATFORMS WILL ALLOW US TO SHARE AND INSPIRE WITH OUR STORY, SHOWCASE PRODUCTS AND SHOW OFF
OUR
HAPPY
CUSTOMERS.
The Wardrobes
PERSONAL SELLING THIS WILL ALLOW THE BUSINESS TO BUILD LONG- TERM BUSINESS RELATIONSHIPS WITH OTHER BRAND OWNERS WHO MIGHT WANT TO BE FEATURED INSTORE. THE WARDROBES HAS A CHANCE TO TAILOR THEIR MESSAGE AND INFORMATION TO SUIT A SPECIFIC CUSTOMER.
SALES PROMOTIONS THE WARDROBES WILL BE USING “REFER A FRIEND” SYSTEM WHICH ENTITLES THE PERSON, WHO HAS REFERRED A NEW CUSTOMERS FOR THE BUSINESS (WHO HAS SUCCESSFULLY SIGNED A CONTRACT TO RENT A BOX) A DISCOUNT ON THEIR NEXT WEEK’S BOX RENT (-20%) THIS WILL WORK TO INCREASE DEMAND AND BOOST THE SERVICE SALES.
PHOTO: THE STYLE STALKER
PHOTO:THE STYLE STALKER
“ “THE MORE REPEAT CUSTOMERS A COMPANY HAS, THE MORE IT IS ASSURED OF CHAMPIONS WHO WILL MARKET ITS PRODUCTS AND HELP IT ACQUIRE ADDITIONAL CUSTOMERS” ANASTASIA (2015).
PHOTO: PINTEREST
The Wardrobes
VISUAL MERCHANDISING THIS IS A KEY FACTOR TO CREATING A PLEASANT AND UNIQUE CUSTOMER EXPERIENCE. THE STORE FRONT FEATURES TWO WINDOW DISPLAYS WHICH INCLUDES SEVERAL MANNEQUINS AND ACCESSORIES TO DRAW CUSTOMERS INTO THE STORE AND CLOSE A SALE. IT IS IMPORTANT THAT THE DISPLAY IS CHANGED FREQUENTLY IN ORDER TO KEEP CUSTOMERS INTERESTED AND TO SHOWCASE THE NEW PRODUCTS/ TRENDS. STORE LAYOUT SHOULD BE EASY TO FOLLOW- CUSTOMERS ENTERING THE STORE SHOULD IMMIDIATELY BE ABLE TO LOCATE THE MAIN POINTS IN THE STOREFITTING ROOMS, THE BOXES AND THE POINT OF PURCHASE. THERE WILL BE ADDITIONAL MANNEQUINS USED IN STORE TO SHOWCASE DIFFERENT OUTFITS. THE PLAYED BACKGROUND MUSIC HAS THE POTENTIAL TO ENHANCE
THE EXPERIENCE PROVIDED TO THE CUSTOMERS AND STAFF. THE LIGHTNING AND MUSIC SHOULD WORK TOGETHER WHICH IS WHY WE WILL BE PAIRING DIMMED LIGHTS WITH HOUSE MUSIC. CALM MUSIC WILL MAKE THE PEOPLE WANDER AROUND THE AISLES SLOWLY THUS STAYING IN THE STORE FOR A LONGER PERIOD OF TIME (PEZZINI, 2017), WHICH CAN AFFECT THEIR SHOPPING BEHAVIOUR AND MAKE THEM PURCHASE MORE. WHEN ALL THE VISUAL MERCHANDISING ELEMENTS COLLECTIVELY COME TOGETHER, IT DEEPENS THE CUSTOMER EXPERIENCE WHICH CAN LEAD TO A POSITIVE SHOPPING EXPERIENCE AND INCREASED SALES.
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SOCIAL MEDIA MOCK UPS
INSTAGRAM AND FACEBOOK WILL BE THE MAIN SOCIAL MEDIA PLATFORMS. THE WARDROBES WILL USE PINTEREST AS WELL TO SHOWCASE TO THEIR CUSTOMERS WHAT INSPIRES THE BUSINESS AND SHARE AN INSIGHT INTO THE LATEST TRENDS. INSTAGRAM WILL BE UPDATED EVERY FEW DAYS, TO KEEP THE CUSTOMERS IN LOOP WITH THE LATEST PRODUCTS, SHARE SOME STYLING TIPS AND SHOWCASE THE STORE VIA THE INSTAGRAM STORIES. THE CHOSEN POSTING FREQUENCY IS SOMETHING THAT CAN BE CONSTANTLY MAINTAINED. IN ADDITION TO ALL OF THIS WE PLAN TO EMPHASIZE ON THE SUSTAINABILITY OF THE BUSINESS
BY SHARING INSPIRING QUOTES THAT OUR CUSTOMERS CAN CONNECT WITH. FACEBOOK WILL BE ALSO UPDATED EVERY FEW DAYS HOWEVER THE CONTENT WILL VARY ON DIFFERENT PLATFORMS IN ORDER TO ENGAGE MORE WITH DIFFERENT CUSTOMERS. CROWDSOURCING WILL ALLOW THE BUSINESS TO OPEN UP FOR POSSIBILITIES FOR EXCHANGES AND BRINGS DIVERSITY AND NEW IDEAS INTO THE STORE- FOR EXAMPLE VIA OUR FACEBOOK CHANNEL WE CAN GET AN INSIGHT WHAT KIND OF BRANDS OUR CUSTOMERS WOULD LIKE TO SEE US PARTNER UP WITH IN-STORE. THIS USER-CENTERED APPROACH HAS A LOT OF ADVANTAGES AND WILL CATER TO OUR TARGET AUDIENCES DIRECT NEEDS, WHICH CAN BE VERY BENEFICIAL FOR THE BUSINESS.
SOCIAL MEDIA CALENDER
SOCIAL MEDIA WOULD BE UPLOADED EVERY FEW DAYS IN ACCORDANCE WITH THE PRODUCED MATERIAL. THE STORE MANAGER WOULD BE R ESPONSIBLE FOR THE UPDATES AND THE CREATION OF NEW CONTENT. AS MENTIONED BEFORE HOOTSUITE AND PLANN WOULD BE THE APPS USED TO MAKE THE PROCESS MORE CONVENIENT AND TIME SAVING. THE CONTENT WILL VARY ON EACH PLATFORM SO THAT THERE WOULD BE SOMETHING EXCITING TO SEE EVERYDAY. ‘TODAY, THE AVERAGE PERSON’S ATTENTION SPAN IS EIGHT SECONDS” (BENDONI, 2017) SO IT IS IMPORTANT TO CAPTURE THAT. A STYLE GUIDE WILL BE PUT IN PLACE IN ORDER TO “ENSURE THAT A BRAND IDENTITY IS CONSISTENTLY AND EFFECTIVELY MAINTAINED ACROSS ALL MEDIA” (SPIES, 2015, P. 120).
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IN-STORE MARKETING
THERE WILL BE FLYERS AVAILABLE IN THE SITTING AREA AND AROUND THE STORE THAT TELL CUSTOMERS MORE ABOUT THE BUSINESS AND HOW THE SERVICE WORKS. THESE WILL ALSO FEATURE OUR SOCIAL MEDIA SO THAT THEY WOULD HAVE A CHANCE TO READ MORE IF THEY ARE INTERESTED. POINT OF SALE WOULD FEATURE A POSTER PROMOTING THE SERVICE OFFERED, SO THAT MORE INTEREST WILL BE GENERATED WHILE COMPLETING
THE PURCHASE. THE WARDROBES ASPIRES TO TURN A SHOPPING TRIP INTO AN EXPERIENCE WHICH THEN CAN BE SHARED ONLINE. AS HINES AND BRUCE (2007, P. 109) HIGLIGHTED- “ EMPHASIS HAS SHIFTED FROM PROMOTING THE PRODUCT TO CAPTURING AND RETAINING THE CUSTOMER”. FOR INSTANCE HASHTAGS WILL BE PROMOTED IN STORE, WE HAVE LARGE MIRRORS WHICH ARE PERFECT FOR THOSE OUTFIT PHOTOS, OUR SALES ADVISORS WILL BE OFFERING STYLING SERVICES, ETC. THE FEEL OF THE STORE AND THE CLOTHES SHOULD GIVE PEOPLE A SENSE THAT THEY ARE A PART OF SOMETHING BIGGER THAN JUST A PLAIN OLD SECOND- HAND SHOP.
PRE- LAUNCH MARKETING
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TWO MONTHS BEFORE THE STORE LAUNCH WE WILL BE STARTING TO PROMOTE A NEW OPPORUNITY FOR CUSTOMERS TO SELL THEIR CLOTHING ON OUR SOCIAL MEDIA PLATFORMS. DM CAMPAIGN, COLLABORATIONS WITH INFLUENCERS AND SOCIAL MEDIA UPDATES WILL GET PEOPLE EXCITED. WE PLAN TO SHARE THE STORY OF OUR STORE COMING TOGETHER VIA INSTAGRAM STORY SO THAT PEOPLE WOULD GET A FEEL OF WHAT’S IT GOING TO LOOK LIKE. “REFER A FRIEND” SCHEME WILL BE PROMOTED WHICH WILL HOPEFULLY GET US MORE CUSTOMERS. THERE WILL BE A COUNTDOWN TO THE STORE OPENING WHICH WILL CULMINATE WITH AN OPENING EVENT. THIS WILL BE ESSENTIAL IN ORDER TO CREATE A LOT OF FUSS AROUND THE BUSINESS AND TO FURTHER
PROMOTE THE SERVICE AND THE STORE ITSELF. LAUNCH EVENT HAS A LOT OF BENEFITS- IT IS GREAT FOR THE INFLUENCERS AND PEOPLE IN THE TARGET AUDIENCE TO GET TO KNOW THE SERVICE OFFERED AND THE STORE UP-CLOSE; HAVE AN ICREASE IN REVENUE (IF PEOPLE SEE HOW IT WORKS MORE PEOPLE WOULD SIGN UP TO RENT A BOX); AND NEW OPPORTUNITIES, SUCH AS NEW PARTERNSHIPS MIGHT ARISE AT THE EVENT AS WELL. THE WARDROBES MIGHT GET NOTICED BY A LOCAL PRESS WHICH WILL GIVE THE BUSINESS GREAT PUBLICITY AND CAN KICKSTART THE BUSINESS.
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PARTNERSHIPS
AS MENTIONED BEFORE WE PLAN TO COLLABORATE WITH A FEW INFLUENCES IN ORDER TO GET THE WORD OUT ABOUT THE WARDROBES. FURTHERMORE INSTORE WE ARE OPEN TO FEATURE DIFFERENT LIFESTYLE/ COSMETICS SELLERS, WHO WOULD BE LOOKING TO PARTNER UP WITH OUR BUSINESS TO SELL THEIR ITEMS INSTORE. THE WARDROBES BELIEVES THAT THIS IS BENEFICIAL FOR BOTH PARTIES IN ORDER TO ACHIEVE GREAT THINGS TOGETHER. WE SUPPORT THE START- UP COMPANIES BY OFFERING THEM A SPACE IN- STORE TO SELL THEIR
ITEMS IN FOR A COMPETITIVE PRICE. WE UNDERSTAND THAT IT IS HARD TO BREAK INTO THE RETAIL MARKET AND ARE MORE THAN HAPPY TO FIND NEW PARTNERS TO TEAM UP WITH IN ORDER TO KEEP THE STORE EXCITING FOR OUR CUSTOMERS. THE ITEMS PROVIDED BY OUR PARTNERHIPS WILL BE ONLY AVAILABLE IN THE WARDROBES (IN ADDITION TO THE BRAND’S WEBSITE), WHICH MAKES IT EVEN MORE UNIQUE FOR OUR CLIENT BASE- “EXCLUSITIVITY, IS A CRITICAL COMPOMENT OF TODAY’S FASHION WORLD” (BENDONI, 2017, P. 44). THE PARTNERSHIPS ARE ALSO A GREAT WAY FOR THE WARDROBES TO GET MEDIA COVERAGE WHICH OTHERWISE WOULDN’T HAVE BEEN AVAILABLE. FOR INSTANCE BARE BEAUTY HAS EXPRESSED INTEREST TO BE FEATURED IN OUR STORE.
PHOTO: THE STYLE STALKER
“ FINANCIAL PROJECTIONS
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OVERVIEW
DATA SHOULD BE REVIEWED ON A DAILY BASIS AND ANALYSED IN MORE DEPTH EVERY OTHER WEEK. MAJOR ASSESSMENT OF SALES, THE CONSUMER PURCHASING PATTERNS AND THE SERVICE THE WARDROBES SUCCESS DEPENDS ON THE GOOD MARKETING STRATEGY WHICH INVOLVES SPENDING CAPITAL TO MARKET ON DIFFERENT PLATFORMS. AS MENTIONED BEFORE SOCIAL MEDIA IS THE MAIN FOCUS. THIS BUSINESS RELIES HEAVILY ON THE INTERNET TO GENERATE BUZZ AND SALES SO A GREAT PERCENTAGE OF THE MARKETING BUDGET WILL GO TOWARDS THAT MONTHLY. SALES
PEFORMANCE SHOULD TAKE PLACE AT THE END OF EACH SEASON. THIS WILL BE BENEFICIAL FOR THE BUSINESS TO MOVE FORWARD AND REFLECT ON WHAT CAN BE IMPROVED IF NEEDED. THIS BUSINESS PLAN NEEDS MORE FUNDS IN THE BEGINNING (STORE SPACE SET UP, ETC) HOWEVER, AS THE CUSTOMER BASE GROWS AND EXPANDS, THE LESS FUNDS WILL BE NEEDED TO MAINTAIN THE BUSINESS AND THE PROMOTION.
PHOTO: THE STYLE STALKER
PHOTO: PINTEREST
“ PERSONNEL PLAN
SALES ADVISORS
RESPONSABILITIES
REQUIREMENTS A POSITIVE CAN-DO ATTITUDE AND A FRIENDLY COMMUNICATION STYLE WITH YOUR FELLOW EMPLOYEES AND CUSTOMERS; PREVIOUS SALES EXPERIENCE; THE INITIATIVE TO IDENTIFY TASKS THAT NEED TO BE COMPLETED; THE DRIVE TO WORK HARD AND CONTRIBUTE TO THE SUCCESS OF YOUR STORE IN ADDITION TO PUTTING CUSTOMERS AT THE HEART OF EVERYTHING YOU DO.
THESE INDIVIDUALS WILL BE THE FIRST POINT OF CONTACT FOR THE CUSTOMERS AND SHOULD BE VISIBLE AT ALL TIMES. YOU WILL BE THE FACE OF THE BUSINESS, PROVIDING GREAT SERVICE TO OUR LOYAL CUSTOMERS. SALES ADVISORS MAKE SURE THAT THE STORE IS TIDY AND REPRESENTABLE AT ALL TIMES. THEY WILL CHECK THE BOXES DAILY TO MAKE SURE THEY LOOK VISUALLY APPEALING AND ARRANGE MERCHANDISE IF NEEDED. THEY WILL NOT ONLY WELCOME AND TAKE THE CUSTOMERS ON A JOURNEY THROUGH THE STORE BUT ALSO ADVISE ON NEW TRENDS, HOW TO STYLE PRODUCTS, AND PROMOTE OTHER ITEMS/ SERVICE OFFERED IN- STORE IN ORDER TO SECURE MORE SALES.
PHOTO: THE STYLE STALKER
PHOTO: THE STYLE STALKER
STORE MANAGER REQUIREMENTS EXPERIENCE AT A MANAGEMENT LEVEL IN RETAIL IS ESSENTIAL ALONG WITH EXCELLENT COMMUNICATION SKILLS, THE ABILITY TO ACHIEVE RESULTS AND DELIVER EXCELLENT MANAGER WILL BE RESPONSIBLE PERFORMANCE IS NEEDED IN FOR THE SOCIAL MEDIA UPDATES ORDER TO MAXIMISE THE PROFITS. AND THE CREATION OF NEW RESPONSABILITIES CONTENT. THEY WILL TRAIN UP THE STORE MANAGER WILL BE SALES ADVISORS AND MAKE SURE RESPONSIBLE FOR THE BUSINESS THEY KNOW HOW TO SOLVE TO RUN SMOOTHLY ON A DAILY ISSUES THAT MAY ARISE IN THE BASIS. A MANAGER SHOULD TAKE PREMISES WHEN A MANAGER IS A GENUINE INTEREST IN EACH NOT PRESENT. THE MANAGER’S EMPLOYEE’S DEVELOPMENT RESPONSABILITY IS TO MAINTAIN IN ORDER TO MAXIMISE THE THE RELATIONSHIPS WITH PERFORMANCE OF THE STORE. DIFFERENT PARTNERS WHOS MANAGER HAS TO DEVELOP PRODUCTS ARE SOLD IN STORE. BUSINESS MANAGEMENT GOALS OVERLOOKING THE MONTHLY AND OBJETIVES WHILE MAKING REPORTS AND SALES FIGURES IS SURE THAT THE CORRECT AN IMPORTANT TASK, WHICH WILL STRATEGIES ARE IMPLEMENTED ALLOW THE BUSINESS TO GATHER TO PROMOTE THE SERVICES AND FEEDBACK AND MOVE ONTO A PRODUCTS WHILE ENSURING THAT NEW DIRECTION IF NEEDED. THE COMPANY HAS THE ADEQUATE MANAGER’S RESPONSABILITY IS AND SUITABLE RESOURCES TO MAKE SURE ALL THE STAFF TO CONTINUE GROWING AND ADHERENCE TO LEGAL RULES COMPLETE ITS ACTIVITES. A AND GUIDELINES AT ALL TIMES.
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STAFFING SCHEDULE
PHOTO: PINTEREST
PHOTO: THE STYLE STALKER
“ THE RETAIL MARKET
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FUTURE TRENDS
STAMMEN (2018) HIGLIGHTS HOW “FAST FASHION BRANDS LIKE H&M, ZARA, AND ASOS HAVE DISRUPTED THE INDUSTRY BY MEETING A PREVIOUSLY UNTAPPED CONSUMER NEED — ON TREND CLOTHING AND ACCESSORIES FOR A LOWER PRICE. THESE BRANDS CAN TURN AROUND NEW PRODUCTS IN FEWER THAN SIX WEEKS FROM CONCEPTION TO SHELF.” WHICH MEANS SOON THOSE ITEMS WILL BE NO LONGER NEEDED THEREFORE THE OWNERS WILL BE ON THE LOOKOUT FOR WAYS TO DISCARD AN ITEM. THE WARDROBES ACKNOWLEDGES THE GROWING SECOND-HAND CLOTHING SECTOR AND SEES A POTENTIAL TO MOVE INTO A BIGGER SPACE IF NEEDED.
ANOTHER FACTOR TO POINT OUT IS THE OMNICHANNEL EXPERIENCEONCE THE BUSINESS HAS GROWN AND IS MOVING ONWARDS STEADILY WE WILL BE LOOKING TO TURN OUR WEBSITE INTO A RESELL SITE, WHERE EVEN MORE CUSTOMERS WOULD HAVE ACCESS TO GARMENTS SOLD ON THE PREMISES. AS SOMERVILLE (2018) MENTIONED “THE ONLINE FASHION INDUSTRY COULD REACH £36.2 BILLION BY 2030: 63 PER CENT OF THE MARKET COMPARED TO TODAY’S 21 PER CENT “. THIS WILL ALSO ALLOW US TO OFFER MORE OF A PERSONALISED EXPERIENCE, WHICH CUSTOMERS NOWADAYS CARE FOR “66% OF FASHION AND APPAREL SHOPPERS SAID THAT A PERSONALIZED SHOPPING EXPERIENCE AND PRODUCT RECOMMENDATIONS ARE SOMEWHAT OR VERY IMPORTANT.” STAMMEN (2018).
PHOTO: THE STYLE STALKER
The Wardrobes
PRODUCT RECOMMENDATIONS WILL GIVE US A CHANCE TO PROMOTE THE BUSINESS EVEN FURTHER ON DIFFERENT SEARCH ENGINES. THIS ALL SHOULD WORK SMOOTHLY ON MOBILE DEVICES AS WELL AS FOR DESKTOPS, “WITH AN OVERABUNDANCE OF MOBILE PAYMENT SOLUTIONS ALREADY AVAILABLE GLOBALLY, CONSUMERS WILL EXPECT FASHION COMPANIES TO CATER FOR INCREASINGLY CONVENIENT MOBILE TRANSACTIONS” (MCKINSEY, 2018). IN THE BEGINNING THE WARDROBES MIGHT BE MORE FOCUSED ON THE WOMEN BY PROVIDING THEM WITH PRODUCTS AND ACCESSORIES, HOWEVER THIS IS SOMETHING THAT THE BUSINESS CAN CHANGE- BY WORKING TOGETHER WITH MORE MEN INFLUENCERS, WE CAN CHANGE THE STORE TO BE MORE FRIENDLY FOR OUR MALE CUSTOMERS.
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RISKS FACING THE BUSINESS INVENTORY MANAGEMENT
RISING E-COMMERCE AS MENTIONED BEFORE THE RISING E-COMMERCE IS ONE OF THE MAIN RISKS FACING THE BUSINESS. “THE GLOBAL FASHION INDUSTRY IS MOVING INTO A DECISIVE PHASE OF DIGITAL ADOPTION BY THE MAINSTREAM CONSUMER, AND ONLINE SALES OF APPAREL AND FOOTWEAR IS PROJECTED TO GROW RAPIDLY NOT THE LEAST IN EMERGING MARKETS“ MCKINSEY (2018). THE WARDROBES MUST ENSURE THAT THEIR STORE INTERIOR, IN ADDITION TO THE OTHER FACTORS, ENHANCES THE OVERALL CUSTOMER JOURNEY SO THAT FOOTFALL WOULD BE DRIVEN INTO THE STORE.
THIS IS ANOTHER ISSUE THE WARDROBES MIGHT BE FACINGTHERE WILL BE CERTAIN GUIDELINES TO BRING IN ITEMS, SUCH AS THEY SHOULD BE SUITABLE FOR THAT CERTAIN SEASON AND NEED TO BE IN GOOD CONDITION HOWEVER IN THIS FAST- MOVING FASHION WORLD A LOT CAN CHANGE JUST IN A SPACE OF A FEW MONTHS. FURTHERMORE EXTERNAL FACTORS CAN MAKE AN IMPACT ON THE INVENTORY- IF THE STORE IS STOCKED WITH SUMMER GARMENTS HOWEVER THE WEATHER ISN’T AS PLANNED, THE BOXES WON’T SELL AS MUCH AS HOPED FOR AND THE UNSOLD STOCK WILL HAVE TO BE RETURNED AT THE END OF THE RENT AGREEMENT. THE WARDROBES WILL FACE A HARD CHALLENGE TO UNDERSTANDING WHAT KIND OF ITEMS WE HAVE IN- STORE AND HOW TO MAKE THE MOST OF IT.
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The Wardrobes
BREXIT IN ADDITION TO THIS, BREXIT, MIGHT PLAY AN IMPACT ON OUR CUSTOMERS SHOPPING BEHAVIOUR. TOBIN (2018) MENTIONS HOW “THE UK IMPORTS ALMOST £10 BILLION WORTH OF CLOTHES AND SHOES FROM EUROPE EACH YEAR“ HOWEVER IF THIS NUMBER DECREASES AND IT WILL BE HARDER TO IMPORT GARMENTS, THE PRICES WOULD INCREASE IN THE UK WHICH MIGHT RESULT IN THE CONSUMER KEEPING THEIR ITEMS FOR A LONGER PERIOD OF TIME. THIS HOWEVER AFFECTS DIRECTLY THE WARDROBES SINCE PEOPLE WILL NOT WANT TO SELL THEIR GARMENTS AND WOULD VALUE THEM MORE.
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COMPETITORS
THE WARDROBES HAS TWO MAIN COMPETITORS- ONLINE RESELL SITES AND PHYSICAL SECONDHAND STORES. FOR INSTANCE DEPOP, AMAZON, SILKROLL AND EBAY ARE A FEW RESELL SITES TO POINT OUT. NEW ENTRANTS TO THE MARKET, SUCH AS THE WARDROBES, MAY NOT POSE A THREAT IN THE FIRST INSTANCE HOWEVER AN ESTABLISHED RETAILER CAN CONSTITUTE A SEVERE THREAT TO ALL THOSE MENTIONED RESELL SITES.
THE WARDROBES IS A FRESH IDEA, WHICH FILLS A GAP IN THE FASHION INDUSTRY AND WILL HELP TO DEMOLISH THE PERCEPTION OF SECOND- HAND STORES BEING ONLY TARGETED FOR OLDER PEOPLE WHERE GARMENTS ARE NOT TRENDY OR THE STORE ISN’T VISUALLY APPEALING. THE SECOND- HAND STORES IN CARDIFF CURRENTLY AREN’T LOCATED CONVENIENTLY FOR CUSTOMERS (USUALLY TEND TO BE AWAY FROM THE MAIN SHOPPING AREA) WHICH AFFECTS THE BUSINESS AND ITS FOOTFALL. ONLINE RESELL SITES HOWEVER WORK ON A COMISSION BASED STRATEGY (ON AVERAGE 10% IS TAKEN OFF ONCE A PRODUCT IS SOLD) HOWEVER THE WARDROBES WILL BE OPERATING A RENT SYSTEM WHICH CAN BE MORE PROFITABLE FOR THE CUSTOMERS.
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“ BIBLIOGRAPHY
The Wardrobes
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“ APPENDICES
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MARKET RESEARCH
NOWADAYS PEOPLE SEEM TO HAVE A CERTAIN PERCEPTION OF SECOND-HAND STORES. “I THINK THEY ARE OVER PACKED WITH CLOTHING WHICH DOESN’T MAKE THEM APPEALING TO APPROACH” WAS POINTED OUT BY ONE OF THE RESPONDANTS ON THE SURVEY. IN THE CARDIFF SCENERY, THE VINTAGE/ SECOND- HAND SHOPS DO NOT LOOK APPEALNG AND ARE MAINLY VISITED BY THE OLDER GENERATIONS, WHO HAVE TIME ON THEIR HANDS TO PUZZLE THROUGH ALL OF THOSE PILES OF CLOTHING. IN ADDITION TO THIS THEY ARE OUT OF THE WAY FOR THE AVERAGE SHOPPING ROUTE WHICH EQUALS WITH LESS FOOTFALL FOR THOSE STORES. YOUNGER GENERATIONS NOWADAYS BUY AN ITEM ONLY TO WEAR IT FOR A FEW TIMES. A SURVEY (CHECKOUT.
COM, 2018) SHOWCASED “THAT OLDER GENERATIONS KNOW WHAT THEY WANT AND FEEL MORE CONFIDENT ABOUT THEIR PURCHASES THAN THEIR YOUNGER COUNTERPARTS”. PATRICK GRANT (2018) HAS POINTED OUT HOW ON AVERAGE A PERSON THROWS AWAY 15 KILOS OF GARMENTS PER YEAR. ”RECYCLING AND RE-USING GARMENTS IS GETTING MORE POPULAR EVERY DAY AND WE CAN SEE A LOT OF BRANDS ON THE HIGH STREET WHO ARE CHANGING UP THEIR WAYS OF PRODUCING NEW CLOTHING- WHETHER IT IS THE USE OF A SUSTAINABLE MATERIAL OR CHOOSING MORE ETHICAL PRODUCTION. “15% OF PLASTIC IN THE OCEAN IS FROM CLOTHING TEXTILES” (GRANT, 2018) AND ONCE IT’S OUT THERE IT CANNOT BE RECLAIMED OR CLEANED UP WHICH MEANS THEY ARE THERE FOREVER AND WILL START TO WORK THEIR WAY INTO THE FOOD CHAIN ETC. THIS IS ANOTHER REASON WHY SUSTAINABLE CONSUMPTION SHOULD BE ENFORCED.
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The Wardrobes IN ADDITION TO THE SECONDHAND SECTOR, WE ALSO HAVE TO TAKE INTO CONSIDERATION OF THE DYING HIGH STREET. OVER THE LAST FEW YEARS THE ARCADES HAVE BLOSSOMED WITH A LOT OF NEW INDEPENDANT RETAILS FOR A VARIOUS OF REASONS- HIGH RENT PRICES ON THE HIGH STREET, POPULAR ONLINE SHOPPING, ETC. HOWEVER EVEN THE ARCADES ARE IN DANGER DUE TO THE POPULARITY OF ONLINE SHOPPING. MOSES (2018) POINTS OUT HOW “THERE’S A GENERATION OF PEOPLE NOW WHO KNOW NOTHING ELSE BUT SHOPPING ONLINE.” CONSUMERS NOWADAYS ARE CONSTANTLY ON THEIR PHONES AND MIGHT FIND IT EASIER TO SHOP AS THEY ARE ON THE GO RATHER THAN BROWSING THROUGH DIFFERENT RETAIL STORES NOT KNOWING WHAT THEY ARE AFTER FOR. BRICKS AND MORTAR STORES MUST ADAPT AND FIND NEW WAYS TO BE CREATIVE AND ATTRACT CONSUMERS. PHYSICAL STORES OFFER A LEVEL OF SERVICE THAT ONLINE PLATFORMS CAN NEVER REPLACE.
The Wardrobes
HOWEVER NO MATTER HOW POPULAR ONLINE SHOPPING IS, THE FACTOR REMAINS THAT PEOPLE HAVE A LOT OF UNWANTED ITEMS HIDDEN IN THE SPACE OF THEIR HOMES. FOR INSTANCE CALDERWOOD (2018) HIGLIGHTS HOW “THE UNUSED CLOTHING SITTING IN PEOPLE’S WARDROBES AT HOME HAS BEEN ESTIMATED AT AROUND £30 BILLION IN BRITAIN ALONE.” THE GOODS FOR THE RESELL SITES EXCIST HOWEVER IT ISN’T PROFITED FROM. THIS MAY BE CAUSE BY THE FACTOR THAT CURRENT RESELLING PLATFORMS REQUIRE TOO MUCH VALUABLE TIME AND IT IS EASIER TO LET THE GARMENTS COLLECT DUST.
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SURVEY
The Wardrobes
The Wardrobes
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PEST
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ECONOMICAL FACTORS FRUE (2018) POINTS OUT HOW THE ECONOMY IS STILL RECOVERING FROM THE IMPACT OF THE 2008 GLOBAL RECESSION, HOWEVER MORE PEOPLE ARE FINDING EXTRA MONEY TO PUT TOWARDS FASHION AND ACCESSORIES. CONSUMERS ARE LOOKING TO LOWER THE AMOUNT OF MONEY THEY SPEND ON FASHION, SUCH AS WITH DIFFERENT RENTAL SERVICES FOR FORMAL OUTFITS, JEWELRY, ETC. PEOPLE ARE ON THE LOOKOUT FOR THE LOWEST PRICE POSSIBLE AND THE WARDROBES OFFERS EXACTLY THAT, IN-STORE SELECTION INCLUDE SOME OF THE LATEST TRENDS AT EXCEPTIONALLY LOW PRICES.
POLITICAL FACTORS CURRENTLY PEOPLE ARE LIVING IN THE FEAR OF BREXIT GOING FORWARD. THIS WILL LEAD TO MOST RETAILERS LOOKING FOR AN ALTERNATIVE SOURCING, DUE TO THE HIGH IMPORT RATES. THAT ON THE OTHER HAND CAN CHANGE THE PRICING STARTEGY OF RETAILERS WHICH CAN LEAD TO CONSUMERS BUYING LESS AND KEEPING THEIR ITEMS FOR A LONGER PERIOD OF TIME. THIS WILL PROBABLY HOWEVER RESULT IN CONSUMERS USING LESS RESELL PLATFORMS WHICH CAN HAVE A DIRECT IMPACT ON THE WARDROBES INCOME.
The Wardrobes
SOCIAL AND CULTURAL FACTORS
TECHNOLOGICAL FACTORS TECHNOLOGY HAS AN ENORMOUS IMPORTANCE IN THE FASHION INDSTURY. DIFFERENT ADVANTAGES FOR E-COMMERCE ARE BEING DEVELOPED AT A MAGNIFICENT RATE WHICH MAKES THE BRICKS AND MORTAR STORES CHALLENGED TO SHOW THEIR IMPORTANCE. THE FASHION INDUSTRY HAS TO KEEP UP WITH THE LATEST CRAZES AND KEEP IN MIND THE CONVENIENT CUSTOMER EXPERIENCE. PRATAP (2018) MENTIONED “THE MILLENNIAL GENERATION MOSTLY LIKES TO SHOP ONLINE AND LIKES A PERSONALIZED EXPERIENCE IN TERMS OF SHOPPING AND CUSTOMER SERVICE”.
CHANGES IN CONSUMER ATTITUDES AND PURCHASING BEHAVIOUR HAS A LARGE IMPACT ON THE FASHION INDUSTRY. SIEGLE (2017) HIGLIGHTS HOW “EVERY YEAR MILLIONS OF GARMENTS ARE DISCARDED AS CONSUMERS DITCH FAST-FASHION STYLES FOR A NEW WARDROBE” (SIEGLE, 2017). HOWEVER THE INDUSTRY IS SHIFTING AND MORE PEOPLE ARE STARTING TO SHOP AT RETAILERS WHO PROMOTE THE SUSTINABLE SHOPPING SINCE THE CONSUMERS HAVE STARTED TO VALUE OTHER ASPECTS OF THE CLOTHING MORE (SUCH AS THE FIBRE IT IS MADE OUT OF, HOW SUSTIANBLE IT IS, WHERE IT IS PRODUCED, ETC.) NOWADAYS CONSUMERS ARE AWARE OF THE DAMAGE THAT THE FAST-FASHION IS CAUSING. PEOPLE NOWADAYS ARE SO INFLUENCED BY BLOGGERS AND ACTIVISTS THAT ONCE THEY GET ON TO THE TRENDING SUSTAINABLE CONSUMPTION, OTHERS WILL FOLLOW.
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The Wardrobes
ENVIRONMENTAL FACTORS THE DAMAGE THE FASHION INDUSTRY IS DOING TO THE ENVIRONMENT IS HUGE. “15 % OF PLASTIC IN THE OCEAN IS FROM CLOTHING TEXTILES” (PATRICK, GRANT, 2018). MASSIVE AMOUNT OF WASTE AND TOXINS ARE PRODUCED JUST TO MAKE ONE PAIR OF JEANS AND GET IT OUT TO THE RETAILERS TO SELL IN- STORE. BRANDS ARE MORE CAREFUL ABOUT THEIR CARBON FOOTPRINT AND ARE INVESTING INTO MORE SUSTAINABLE RAW MATERIALS (INCLUDING PACKAGING INSTORE) AND PROCESSES. PRATAP (2018) EVEN HIGHLIGHTS THAT “SUSTAINABILITY HAS BECOME A KEY INFLUENCER OF THE CONSUMERS’ PURCHASING DECISIONS” WHICH IS A GREAT NEWS FOR THE VINTAGE SELLERS.
LEGAL FACTORS LIKE OTHER BUSINESSES, EVEN THE FASHION INDUSTRY HAS TO FOLLOW A LOT OF RULES AND REGULATIONS- WORKERS RIGHTS, EXPORT RESTRICTIONS AND TAX RESTRICTIONS ARE JUST A FEW TO POINT OUT. HOWEVER RECENTLY ETHICS, SUSTAINABILITY, AND ECONOMIC DEVELOPMENT HAVE BEEN THE ONES TO BE TALKED ABOUT. DUE TO THE IMPORTANCE OF SUSTAINABLE CONSUMPTION RECENTLY, A LOT OF UNWRITTEN LAWS HAVE BEEN PUT IN PLACE WHICH REQUIRE BRANDS TO USE MORE SUSTAINABLE MATERIALS OR USE THEIR WASTE MORE EFFECTIVELY.
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LEASE AGREEMENT
IN ORDER TO RENT A BOX THE CUSTOMERS ARE EXPECTED TO SIGN A FORMAL CONTRACT BETWEEN TWO PARTIES. THIS WILL STATE THE DURATION OF THE LEASE AND THE NUMBER OF THE ALLOCATED BOX. THE CONTRACT STATES THE CONDITION CLOTHES SHOULD BE BROUGHT IN AND OTHER IMPORTANT FACTORS THAT THE CLIENTS SHOULD BE INFORMED OF. THIS WILL BE ALSO AVAILABLE ON OUR WEBSITE FOR THOSE WHO ARE INTERESTED TO SEE. THIS CONTRACT WILL ALLOW THE WARDROBES TO SCHEDULE THE AVAILABILITY OF BOXES IN ORDER TO ORGANISE THE NEW TENANTS IN A TIMELY MANNER.
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THE BOX ….. LEASE AGREEMENT THIS LEASE dated …………..…..……......... TO …..……..…..……………….. BETWEEN The Wardrobes (15- 17 High Street Arcade, CF10 1BB, Cardiff) Telephone: 08972958838 (the “Landlord”)
-AND……………………….……..… ( ……………………………..………………………) (the “Tenant”)
IN CONSIDERATION OF the Landlord leasing a certain Box to the Tenant, the Tenant leasing that Box from the Landlord and the mutual benefits and obligations set forth in this Lease, the receipt ad sufficiency of which consideration is hereby acknowledged, the Parties to this Lease agree as follows:
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Definitions 1. When used in this Lease, the following expressions will have the meanings indicated: a. “The Box” means the leased part of the Premises. b. “Lettable Area” means with respect to The Box, this will be expressed in numbers. c. “Premises” means the retail store at 15- 17 High Street Arcade, Cardiff. d. “Rent” means the total of Base Rent. e. “The Business” refers to retail stores The Wardrobes which will be located on the premises. f. “The Service” refers to the service offered in store, where the business promotes and sells items provided by the tenant. g. “Profits” refers to the sales made from The Box. Intent of Lease 2. It is the intent of this Lease and agreed to by the Parties to this Lease that rent for this Lease will be on gross rent basis meaning the Tenant will pay Base Rent and the Landlord will be responsible for all other service charges related to the Premises and the operation of the Building save as specifically provided in this Lease to the contrary. Let Premises 3. The Landlord agrees to let to the Tenant The Box …… located on the Premises. 4. The Box rent includes hangers and labels. Term 5. The term of the Lease commences at …..……. on ……..…. and ends at ……..…. on ………… 6. Should the tenant remain in possession of The Box with the consent of the Landlord after the natural expiration of this Lease, a new tenancy from month to month will be created between the Landlord and the Tenant, which will be subject to all the terms and conditions of this Lease but will be terminable upon either party giving one month’s notice to the other party.
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Rent 7. Subject to the provision of this Lease, the Tenant will pay a base rent of £80.00, payable per week, for The Box (The “Base Rent”), without setoff, abatement or deduction. 8. The Tenant will pay the Base Rent at least one week in advance of the next trading week. 9. No acceptance by the Landlord of any amount less than the full amount owed will be taken to operate as a waiver by the Landlord for the full amount or in any way to defeat or affect the rights and remedies of the Landlord to pursue the full amount. 10. If the Tenant hasn’t made the rent payment on time, an interest of 20% will apply to the sum. Profits 11. The Tenant will receive the profits made from sales at the end of each calendar month or at the end of the tenancy. Use and occupation 12. The Tenant will use the allocated Box to sell clothing and accessories. The Business will use and promote the products featured in The Box. 13. The Tenant will make sure that the garments provided (in order to use the service) will be in a great condition- no rips, holes, tears, stains, etc. 14. The Sunday, prior to the Lease agreement starting date, the Tenant will be required to bring in the garments and lay them out in a way that pleases both parties concerned. This way the store trading hours will not be affected. A similar procedure will be followed after the lease ends- the owner will come and collect their remaining belongings on a Sunday. If not convenient the remaining garments will be placed into the stock room for an extra fee (£20 per week). 15. The Landlord will transfer the profits made from the Box at the end of each month (the last Friday) to the tenants provided bank details. Quiet Enjoyment 16. The Landlord covenants that on paying the Rent and performing the covenants contained in this Lease, the Tenant will peacefully and quietly have, hold and enjoy the services for the agreed term.
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Distress 17. If and whenever the Tenant is in default in payment of the Rent owed under this Lease, interest on that Rent (20% per week) and any value added tax in respect to that Rent, the Landlord may use the commercial rent arrears recovery (the "CRAR") procedure set out in Schedule 12 (Taking control of goods) of the Tribunals, Courts and Enforcement Act 2007 to have an enforcement agent use its enforcement power to take control of the Tenant's goods and sell them to recover that outstanding amount. Inspections and Landlord's Right to Enter 18. The Landlord and the Tenant will complete, sign and date a schedule of condition at the beginning and at the end of this tenancy. Bulk Sale 19. No bulk sale of goods and assets of the Tenant may take place without first obtaining the written consent of the Landlord, which consent will not be unreasonably withheld so long as the Tenant and the Purchaser are able to provide the Landlord with assurances, in a form satisfactory to the Landlord, that the Tenant’s obligations in this Lease will continue to be performed and respected, in the manner satisfactory to the Landlord, after completion of the said bulk sale.
Signed for and on behalf of:
Name: ____________________ (The Wardrobes)
____________________ (Tenant)
Signature:__________________
____________________
Date:
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FINANCIAL FORECAST 147
DURING THE GROWTH PHASE OF THE SERIVCE, THE AWARENESS OF THE SERVICE SHOULD INCREASE WHICH SHOULD LEAD TO MORE BOXES BEING RENTED OUT IN THE FOLLOWING YEARS. IF THE WARDROBES HAS UNDERSTOOD CORRECTLY HOW TO PRICE THE SERVICE, THEN THE SUCCESS SHOULD BE DRIVEN IN THE LONG RUN. THE FOLLOWING TABLES WILL SHOWCASE AN ESTIMATE OF THE FUTURE FINANCIAL OUTCOMES THE WARDROBES FOR THE FOLLOWING TWO YEARS.
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