A six month buying plan for fall 2015
Table of Contents Mission Statement The Free People Girl - The Girl The Free People Company - Company Size - Brand Identity The Free People Mission The Free People Competitors: - Cleobella - Planetblue - For Love and Lemons - Anthropologie Free People: Strengths & Strategies for Growth Free People: Web & Social Media Product Category - Dresses - Size and Style - Lifestyle Trends - Fashion Trends - Music Festival Fashion - Country Boho - Alternative Plaids - New Layering Techniques - 70’s Rocker - Soft Textiles Six Month Buying Plan - Corporate - Assortment Plan - Nashville - San Francisco
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Mission Statement
To create a six-month buying plan for Free People, by understanding the Free People consumer and marketplace.
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The Free People girl, shops on a want basis, her closet is a collection, she has go to pieces, and spends her money on experiences. Her goals in life are to be adventurous fit and healthy.She supports local markets, vintage shops and record stores.
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The Girl
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Name:Jane Doe Age: 26 Location: San Francisco, CA Profession: Music/Fashion Industry Salary: $60,000-$75,000 In a Relationship Bachelors Degree Vegan Smart Creative Experiencer Free Spirited Adventurous lover Traveler Surfer Yogi Tech Savvy Liberal Music Festival Attendee
The Company In 2001, a branch grew from Urban Outfitters into Free People. The First Free People Boutique was opened in New Jersey in 2002. Their E-commerced commenced in 2004 and since then has expanded internationally to the United Kingdom and China in 2012.
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Company Size:
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-102 stores -International Stores: - Canada - Japan - Websites for United Kingdom and China - 1,400 Specialty Stores - Department Stores: - Nordstrom - Bloomingdales - Macy’s - Out of URBN’s $3.1 Billion Made in 2014, Free People and Anthropologie made $1.68 Billion -Labels: -FPx -FP One -FP Beach -We the Free -FP Movement -FP New -FP New Romantics -Endless Summer -Vintage Loves
Brand Identity At its heart, Free people is feminine and free. It conveys a sense of adventure, beauty and gives off an indescribable confidence.From unique clothing to unique store layouts making sure to identify with their ideal customer. Claiming no one space or city, the free people image embodies a world of inspiration and creativity. Through blogs, films and social media the Free People brand isn’t just a place to buy clothing or accessories, it has become an outlet to define a lifestyle.
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The Free People Mission To create quality comfort clothing for the free spirtited girl. As well as to connect with theconsumer through various outlets and to inspire and encourage a free spirit lifestyle filled with romance, art, travel, health and movement.
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Cleobella is an online retailer and clothing boutique based out of Huntington Beach,California. The brand embodies a soul bound to an open road and their clothing reflects that. Offering an assortment of products in similar categories and price points to Free People, they even extend themselves to childrenswear and furniture.
Free People Competion 12
Planetblue is a lifestyle and fashion brand focusing on the bohemian beach culture for women. Keeping with its earthly roots in California this brand has eight store along the west coast and Japan. Constantly evolving this brand defines a culture similar to free people and targeting a similar bohemian girl customer.
Free People Competion
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A brand created by best friends Gillian Rose Kern and Laura Hall, has quickly rose the ranks and is being sold online as well through many major retailers across the United States. With many custom lace pieces and engineered embroidery this brand has captured the attention of free spirited customers everywhere. Designed in their hometown of Jackson, WY the brand is evolving to a lifestyle for the traveling nomads. 14
Free People Competion 15
Anthropologie is a brand also owned by the parent company Urban Outfitters and has a similar store aesthetic. Founded in Pennsylvania in 1992, it is described as a store that is for women who want a curated mix clothing. Not only encompassing apparel anthropologie has an array of home dĂŠcor, gifts and signature products. Anthropologie generally has an older audience than Free People but offers similar product categories that definitely make it a big competitor. People who shop at one of Urbans companies usually shops at all of them on occasion or more often.
Free People : strengths & strategies for growth Free Peoples largest strength is its brand identity. In being a part of Urban Outfitters companies it would have been easy for Free People to fall into just another Urban store. Instead free people knew their exact customer completely and continues to evolve and grow with her. In future growth we see Free People starting to branch into new products including sportswear and home goods. This will allow for Free People to continue to become a leading lifestyle brand. The growth of international presence and expanding to Japan is a huge strength and a place for continual growth. Lastly Free People’s avid social media presence is a leading factor to their success and has allowed for millions of their customers to connect and inspire one another. 16
FP ME: Free People Social Community
Free People : Web & Social Media
freepeople.com
17 Free People Blog: BLDG 25
Free People App
Free People is among the new era of the most successful brands turning into lifestyle brands. Just alone on their e-commerce site they allow customers to create collections and make boards and engage with other shoppers as well. Not only do they have their own website but active user platforms on Pinterest, Twitter, Vine, YouTube and Instagram. These all have been vital in creating a sense community between the company and its loyal patrons. With platforms like YouTube they allow a story to be told through short films that is absolutely captivating to all who view them. And also Instagram accounts for each separate store location reposting local women in their clothes, Free People is allowing its customer to feel like they’re a part of something that understands them and represents who they are as an individual.
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DRESSES
We chose dresses because they are one of the first items you look for at Free People as it is such a large part of their identity. When you imagine the Free People girl she is wearing a dress, and there a lot of opportunities within the category because of current trends and events. Making it an important category to buy for next season.
Product Category 19
size & style -Online: 32% of inventory is dresses during Fall/ Winter -Stores: during the Fall/Winter season 10% of inventory is dresses. They primarily focus on pushing sweaters and distressed bottoms. -Style:
-
Day Party Night Out Printed Modern
-
Maxi Mini Bodycon Fit & Flare
- Shop by Category:
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Music
Body
LUSH : FRESH HANDMADE COSMETICS
FKA TWIGS/ ANGUS&JULIA STONE
AC-DC/ VANCE JOY TARTE COSMETICS BASTILLE/ GEORGE EZRA
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Lifestyle Trends
FLORA BY GUCCI
TOVE LO/ STROMAE
Art
Blogs
BOHEMIANCHIC.CREATORSOFDESIRE.COM
COUNTRY MUSIC HALL OF FAME NASHVILLE, TENNESSEE
FOREVERBOHO.COM
SAN FRANCISCO MUSEUM OF MODERN ART(SFMOMA) SAN FRANCISCO, CALIFORNIA
BOHEMIANBUNNIE.COM
22 BOHEMIANROMY.TUMBLR.COM
Music Festival Fashion Music Festivals have become a major component of young women’s schedules across the globe. In dressing for these events, a specific style has come, resulting in its own product category. With Festivals like Music Midtown, Reading, Leeds and Outsidelands all happening in fall attracting over 100,000 people each this is a vital part of our sales forecast. For these festivals we see a shift from 70s flower children to a more bohemian vibe with a rocker flare edge. This trend involves lightweight fabrics that are comfortable and airy allowing full range of movement for dancing the day away. In keeping with Free Peoples brand identity this loose, light and playful trend is a perfect match.
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Fashion Trends
Country Boho This season two worlds are colliding for a mix of country bohemian flare. This trend involves relaxed silhouettes with a mix of prints with a hint of a Midwest cowgirl. These soft and draped romantic shapes are slightly crumpled allowing for a laid back vibe. Keeping true to the bohemian edge the color palette lends itself to the desert with hues of neutral colors and the light sky of an early morning sunrise over the plains.
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Alternative Plaids A 90s hit and a classic coming back for the season, alternative plaids will be seen extensively this year. Instead of its usual button up or jacket form plaids are being used in new ways. Dresses are being shown in a retro perspective, with different lengths and lines involved in this trend. Sticking to a more classic color pallet, black and red is back and as bold as ever. Also seen has been a new mix of plaids with touches of lavender and tangerine. All fun flirty ways to add a punk flare to an outfit.
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Fashion Trends
New Layering Techniques Dresses are the “it� item for the fall season. With new layering techniques being displayed, dresses are becoming thinner for the winter season in this trend and being paired with pants and blouses underneath. Utility is key and with winters getting colder in record temperatures around the States, this allows for fashion to be as useful as it is beautiful.
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70’s Rocker The decade of freedom and change is back and in mass amounts. 70’s style dresses have been seen on the runway from NYC to Milan and consuming the industry. The sweeping wide hem lines and loose fitting silhouettes are perfect for all body types. The essence of this freedom age is clearly displayed in the light fabrics and obtuse shapes being shown. With all kinds of chiffon maxi dresses and muted floral prints.
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Fashion Trends
Soft Textiles It’s all about the details with this trend and even more so about the touch of the fabric. In viewing these trends you can see the texture without even touching the product. New soft leather has interesting colors and a revival of the velvet dress in long sleek shapes. Lastly soft and delicate suede in head-turning colors are warm to the eye and a staple piece for a winter wardrobe this year.
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Six-Month Buying Plan
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Why?
We chose to plan for a 15% increase over last years sales to accurately reflect the companies continual growth. In the past few years Free People’s domestic shop expansions have resulted in a rise in wholesale revenue. This combined with the bohemian trends & rise in interest in this lifestyle, a 15% increase allows us to take a very calculated leap forward to further growth.
Risk /Opportunity
In looking at this number we see an opportunity to continue the brands growth into the next season. Free people was the most fiscally productive brand for Urban Outfitters in 2014 and we see an opportunity to keep that momentum up by planning a 15% increase.
Buying Plan
Free People
Free People
Focus Product Category: Dresses Focus Product Category: Dresses
Fall 2015
Plan Net Sales, Fall 2015
Est. Net Sales, Fall 2014 Plan % Last Year: Average Stock, Retail: Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %:
(000's)
Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions
% Fall Purchases, Retail
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Purchases, Cost
Fall 2015 18,200.0 Plan Net Sales, Fall 2015 15,800.0 Est. Net Sales, Fall 2014 15% Plan % Last Year: 8280.0 Average Stock, Retail: 2.20 Inventory Turnover: 2912.00 Planned Reductions, $: 16% Reductions % Sales: 53% Plan IMU %:
15% 8280.0 2.20 2912.00 16% 53%
October August 3094.0 3458.0 2730.0 Net Sales 3094.0 17.00% 19.00% 15.00% % Fall 17.00% 8972.6 9336.6 8463.0 Plan BOM Stock 8972.6 2.9 2.7 3.1 Stock / Sales Ratio 2.9 9336.6 8463.00 8663.20 Plan EOM Stock 9336.6 436.8 436.8 436.8 Plan Reductions 436.8 15.00%
15.00% 15.00% % Fall 15.00% 3894.8 3021.2 3367.0 Purchases, Retail 3894.8 1830.6 1420.0 1582.5 Purchases, Cost 1830.6
18,200.0 15,800.0
(000's) September
August
Fall 2015 November December January September October November December 3094.0 3640.0 2184.0 18,200.0 3458.0 2730.0 3094.0 3640.0 17.00% 20.00% 12.00% 100.00% 19.00% 15.00% 17.00% 20.00% 8663.2 8736.0 6988.8 8280.0 9336.6 8463.0 8663.2 8736.0 2.8 2.4 3.2 2.7 3.1 2.8 2.4 8736.00 6988.8 6800.0 8463.00 8663.20 8736.00 6988.8 582.4 582.4 436.8 2912 436.8 436.8 582.4 582.4 20.00%
15.00% 3749.2 3021.2 1762.1 1420.0
Janua
12.0
6988
3.2
6800
436.
20.00% 15.00% 100.00% 15.00% 20.00% 20.00% 2475.2 2432.0 18939.4 3367.0 3749.2 2475.2 1163.3 1143.0 8901.5 1582.5 1762.1 1163.3
2184
15.0
2432
1143
Assortment Plan FASM 245 Retail Buying Simulation Assortment Plans Fall 2015 Focus Product Category: Dresses Planned Purchases, Retail: Average Retail Price:
n
39,400.00 $168
5783 4655 2735
$168
%
$
Unit
Sizes 2 4 6 8
Total 15% 18% 20% 20%
Purchases $2,840,910 $3,409,092 $3,787,880 $3,787,880
Purchases 16910 20292 22547 22547
10 12
14% 13% 100%
$2,651,516 $2,462,122 $18,939,400
15783 14655 112735
nit
chases 6910 0292 2547 2547
$18,939,400.00
% Classification Total Bodycon 17% Maxi 20% Fit & Flare 18% Mid Length 17% Cocktail Trend
$
Unit
Purchases $3,219,698 $3,787,880 $3,409,092 $3,219,698
Purchases 22998 15461 21994 20123
16% $3,030,304 12% $2,272,728 100% $18,939,400
16835 18182 115593
Since our product category is women’s dresses, we decided to provide an assortment plan for different silhouettes and sizes of dresses. Maxi Dresses & Fit and % $ Unit Avg. Flare encompass the highest percentagClassification Total Purchases Purchases Retail es of our silhouettes. Bodycon 17% assortment $3,219,698 22998 $140 In sizes we range 2-12 with15461 a bell$245 curve shape Maxi 20%from $3,787,880 Fit & distributing Flare 18% $3,409,092 21994 $155 the most of our sizes in the Mid Length 17% $3,219,698 $160 6-8 range. The rest of 20123 our silhouettes are Cocktail 16% $3,030,304 16835 $180 divided12% into$2,272,728 bodycon, midi and$125 trend. Trend 18182 In looking at prices our average 100% $18,939,400 115593 $168 retail price was at $168, with prices ranging from Avg. around $125 to $245. The higher priced Retail dresses are due to brands specific set re$140 tail costs. In house made dresses usually $245 sit at the lower price points. $155 $160 $180 $125 $168
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Why Nashville?
Nashville is slowing becoming one of the trendiest cities for young people in America. Moving away from its just country roots, Nashville is a hub for all musicians and artists alike and is a popular tourist stop. The Nashville storefront is relatively new and is still growing. In contrast to the San Francisco store we wanted to plan for a store that sold through more similarly to our corporate plan.
Risk/opportunity
As a team we planned our inventory turnover as an opportunity to keep growing especially with trends such as country boho being a major direction this season. There is a risk that people will not like or catch onto this specific trend or others but we are confident in this new market area for Free People.
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Purchases, Retail
6.2
5.3
5.9
6.6
3.6
3.9
31.5
Purchases, Cost
2.9
2.5
2.8
3.1
1.7
1.8
14.8
Free People Nashville Focus Product Category: Dresses Fall 2015 Plan Net Sales, Fall 2015
18.2
Est. Net Sales, Fall 2014
15.8
Plan % Last Year:
15%
Average Stock, Retail:
8.5
Inventory Turnover:
2.14
Planned Reductions, $:
2.91
Reductions % Sales:
16%
Plan IMU %:
53%
(000's)
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August
September
October
November
December
January
Fall 2015
Net Sales
3.1
3.5
2.7
3.1
3.6
2.2
18.2
% Fall
17.00%
19.00%
15.00%
17.00%
20.00%
12.00%
100.00%
Plan BOM Stock
9.0
9.3
8.5
9.0
9.5
7.4
8.5
Stock / Sales Ratio
2.9
2.7
3.1
2.9
2.6
3.4
Plan EOM Stock
9.3366
8.46
8.97
9.46
7.4
7.0
Plan Reductions
0.4
0.4
0.4
0.6
0.6
0.4
2.91
% Fall
15.00%
15.00%
15.00%
20.00%
20.00%
15.00%
100.00%
Purchases, Retail
3.9
3.0
3.7
4.2
2.2
2.2
19.1
Purchases, Cost
1.8
1.4
1.7
2.0
1.0
1.0
9.0
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Why San Francisco?
We chose a location in San Francisco so we could have a buying plan that was a faster turn than our corporate buying plan. The culture and international travel that encompasses this city means a higher volume of sales in that store. In general the bay area is known across the country as a place that has a bohemian style, making for a large number of our target customers residing or traveling to this area.
Risk/opportunity
The inventory turnover is significantly higher in this store plan to reflect a great opportunity we see as a buying team. This is a high traffic store that has potential to do better than most of our stores in the United States. During the season there are music festivals and events drawing in crowds from across the world. We want an aggressive assortment plan that reflects that. 37
Purchases = Net Sales + Reductions + EOM Stock - BOM Stock Cost = Retail * (100% - IMU %) Inventory Turnover = Net Sales / Average Inventory
Free People San Francisco Focus Product Category: Dresses Fall 2015 Plan Net Sales, Fall 2015
30.0
Est. Net Sales, Fall 2014
25.0
Plan % Last Year:
20%
Average Stock, Retail:
12.4
Inventory Turnover:
2.41
Planned Reductions, $:
4.80
Reductions % Sales:
16%
Plan IMU %:
53%
(000's)
August
September
October
November
December
January
Fall 2015
Net Sales
5.1
5.7
4.5
5.1
6.0
3.6
30.0
% Fall
17.00%
19.00%
15.00%
17.00%
20.00%
12.00%
100.00%
Plan BOM Stock
13.3
13.7
12.6
13.3
13.8
10.4
12.4
Stock / Sales Ratio
2.6
2.4
2.8
2.6
2.3
2.9
Plan EOM Stock
13.68
12.60
13.26
13.80
10.4
10.0
Plan Reductions
0.7
0.7
0.7
1.0
1.0
0.7
4.8
% Fall
15.00%
15.00%
15.00%
20.00%
20.00%
15.00%
100.00%
Purchases, Retail
6.2
5.3
5.9
6.6
3.6
3.9
31.5
Purchases, Cost
2.9
2.5
2.8
3.1
1.7
1.8
14.8
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Free People Nashville
instagrams used in this book from: @freepeople @freepeoplewalnutcreek @freepeoplesavannah @freepeopleseattle @freepeoplenashville
Monica Frontanes Kelsey Bidel-Niyat Savannah College of Art and Design FASM 245 prof. Green Winter 2015