STAGE TWO REPORT
MUSE FASHION MARKETING AND BRANDING MUJUN ZHANG N0678951
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Introduction 1-7 Introduction Fig.1
9 Rationale
10 Report Aim&Objective 11 Stage One Insight
12-15 Research Methodology 12-15 Limitation
1: The Environment Macro Trend
19-21 - PESTLE
24-27 Micro Trend
29 Trend Analysis -
29 Business Opportunities
2: The Idea 32-35 Concept Test 38-39 The Big Idea
40 Business Objectives 41 Brand Identity: - Brand Vision
CONTENT
- Brand Mission
- Brand Essence - Personality
- Brand Logo
- Colour Palattee
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3: The Market Target Market 44-45
Customer Profile 46-47 Market Analysis
- Mobile App Market 50
- Mobile Commerce and 51 Fashion App Market
- Fashion App Market 52 Segmentation
Gap In The Market 54
Competitor Analysis 56-57 Market Positioning 58-59
Porter’s Five Forces 61-63 SWOT Analysis 65-67
4: Marketing Marketing Mix (7Ps) 70-72
Marketing Objectives 73
3 Year Marketing Plan 75 Year 1 77 Year 2 78
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91-93 94-95 96-97 98-99
B2C Communication
- Launching Project A - Activity B
- Activity C
Supporting Activity
6: Finance 102
Start Up Cost
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Sales Forecast
103 106-107 108
Raising Capital Income Statement and Marketing Budget Cash Flow
7: The Future 112-113 114-115 115
116-118 118 119
Risks Measurement
Sucess Measurement - KPI Model
Future Development - Ansoff Matrix Conclusion
Year 3 79
Timeline 80-81
5: Communication B2B Communication 84-85 Brands Range 86-87
121-123 Reference 123-126 Bibliography
127-129 Image Illustration 130-146 Appendix
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The rapid development of digital connectivity has made a significant influence on people’s everyday life and consumer behavior. According to the McKinsey’s report, digital evolution will be an inevitable trend for the fashion industry. (McKinsey&Company, 2019) In the past decades, the fashion field had started to explore more possibilities of combining the existing offers and services through online to offline and implement them by using the improving technique. One of the achievement was the rising trend of omnichannel retailing, which could help the business to keep pace with the booming online activities, then brought a higher rate of enjoyment and engagement.
INTRODUCTION
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However, the difficulty of translating the in-store experience to the online site is the core reason to make the fashion industry adopt e-commerce slower than others. (Blazquez.M, 2014) In fashion, the physical experience such as seeing the style and try on the clothing is a critical factor that influences consumers’ decision making. It can argue that better e-commerce is improving brand choices and products visualization, but the feeling of interaction is still a problem for online retailers.
Recently, the importance of new technology is beginning to become realized with the ability to enable customers to have a more interactive and exciting shopping experience. (Blazquez.M, 2014) According to Edwin and ARI, Virtual Reality and Augmented Reality is a “growth engine for fashion” that should be embraced by the whole fashion industry (Jiang.E, 2017 ). As well as Artificial Intelligence, it would be a core factor on enhance customer relationships and made a more effective supply chain in the next decade. (Boos.C, 2018)
Fig.3
Based on the opportunities evaluation from stage one report, the further primary and secondary was needed to conduct to carry out these business chances into viable and practical marketing and branding plan.
“Digi capital forecasts that the AR and VR market will hit $150 billion in revenue by 2020, bringing in about $120 billion and $30 billion, respectively.” (- Quytech, 2018)
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“The web and other digital technologies give fashion business new methods to create and express their stories, distribute them and make access more open and available to people across the globe.� - Craig Lefebvre.R, 2010
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Fig.4
RATIONALE In the past 2018, the fashion retail market had a gradual growth led by the advanced digital channels; it is expectable that in 2019, the market will be redefined by the emerging technologies which would shape the communication strategy and the retailing chain between brands and customers. (Forbes A, 2019) Even so, the market is always changing, and retailers need to have strict attention to the new shifts in consumer behavior and their preference. The research in stage one report demonstrated how fashion embraces the new digital infrastructure and utilize them to reach new consumer’s demand. The conclusion and insights from the previous report could argue that it is necessary for fashion business to abandon the traditional thinking pattern, but to explore more innovative ideas achieved by using new technology.
future of the fashion industry who owned the “disruptive mindset.” (Rein.G, 2016) They are more free thinking and concern individuality more than others, with their highly using rate on social media, their sharing of information and opinion would be more valuable in the upcoming decade. According to the white paper of “Five Luxe Trends,” these groups have the potential to be the most active consumers’ group in the next 20 years. Thus, with the booming new generation with ever-changing of preference and expectation, how can fashion business provide creative ideas to enhance their current supply by using the evolving technological landscape will be discussed in this report. The conclusion will demonstrate through an innovative business idea including the marketing and branding plan.
Moreover, the shifting demographics bring the millennials and Gen Z to the 9
Fig.5
This report aims to apply an innovative and practical marketing plan, which focus on deliver a more interactive and immersive shopping experience for fashion business in the digital era.
Aim &Objectives
1: To investigate the current macro environment and the market drivers, integrate the influence to the society and explore the viable opportunities for the fashion industry. 2: To research the digital influence on millennials and Gen Z to create a targeted business and marketing plan. 3: To create a fashion app that bridge the gap between digital and physical shopping experience and become a market leader in three years.
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4: Launch a three-year marketing plan and one-year communication plan based on in-depth research of current consumption environment. Aims to provide a more emotional connection with the audience and add value to the brand itself.
STAGE ONE INSIGHTS The stage one report highlighted the fashion industry’s evolving in the digital era; they can divide into two sections of insights which are high demand for fashion advice and interactive AR related service. Fig.6
AR Related Servce Styling Advice
39% of online participants interest in receiving styling suggestion The research revealed that the personal styling assistant is in high demand with agree from 24% of online respondents and 70% of the focus group. Also, 39% of the online audience enjoyed the “Fashion Styling” section in the mobile app. Some of the fashion brands have begun to utilize this service to increase their awareness and upgrade the shopping journey, such as online retailer Zalando and ASOS.
1,013 individuals aged 19-49, 44% were “very interested” in AR related service. (Statista) Moreover, the digital virtual fitting played another vital role in the process with a 50% agreement from the online participants. It is a new digital tool to speed up the try on experience and the whole shopping journey thanks to the AR technology. Currently, it is not limited in the offline field or apparel only, but also the mobile application and beauty brand, such as Charlotte Tilbury, L’Oreal and MAC. They collaborate with a beauty camera application and engage the audience to try on their new series of lipstick by using the AR and AI technologies before they buy.
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This report contains a deliberate design of both primary and secondary research. Kumar defines the research process as a “Systematized effort to gain new knowledge.” (Kumar.R, 2019) In this report, the “new knowledge” would be consumers’ insights on consuming experience and future expectation on fashion app, which would be used to build a brand new mobile app for fashion buying and styling. Kothari defines this type of research as exploratory research studies. Thus, the research would finally make the existing knowledge for its advancement. (Cai.J, Moris. An et al., 2019) Fig.7
METHODOLOGY
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Primary Research Online Survey The online survey contained ten questions, aimed to explore people’s online shopping behavior within the current fashion app. The final result of primary research included 132 samples aged between 18 to 35 for both male and female. Their consuming experience including the problems they find and the expectation on the app will be valuable insights to build a dominant brand in the future. The survey conducted through three social channels including Facebook, Instagram, and Wechat, the various online platform would enable more volume of respondents from all demographics. Limitation: As the survey form were multiple choice so it could argue that there was a lack of accuracy, the Focus Group question sentence and the options applied may lead the customer’s real viewpoint. Kothari stated that the qualitative data is essential in the behavioral sciences which would outline the underlying motives of human behavior. (2004) Through the focus group research, their online shopping preference and opinion on new technology had analyzed. They also helped the new brand Muse to test the concept and strategy plan. A clothing matching activity aimed to imitate the app’s operation of matching products from different brands together then measure their interest in this operation. (See Appendix) The products came from the potential collaboration brands that aimed to test the brand’s adoption among target customers. The respondents consisted of 10 female aged between 18 to 26 which considered as the primary target consumer for the new brand. Their answer was utilized as a critical factor to adjust the marketing and communication plan. Limitation: The open questions are not easy to gather practical ideas by the restriction of time and other people’s feedback.
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Primary Research App Observation Additionally, the app observation used to explore the current fashion app market to do the competitor analysis, as well as their current utilization of new technology. The mobile application choose focused on three major types: fashion aggregator app, discovery app, and personal shopping app.T he observation on these apps would help the brand Muse to figure out the unique selling point and innovative technological using. Limitation: Currently, there were a few similar fashion app with Muse, so it is hard to do an expectation on future development. Also, there was lack of targeted research because the observed fashion app showed the similar USP in the current online market such as wide range of brand choices with competitive price and aftersale service, so the deficiency of market leaders and Brands Interview core competitiveness made the research result not clear and practical enough. The collaborated brand choice need a careful consideration based on different brand’s opinion on trying new technology and their current marketing strategy. To have a deeper understanding of this information, a face-to-face interview with some brands’ staff had proceeded, and the question range includes their observation on customer’s try on experience, the main returning factors and their response to the new business idea of Muse. The interview aimed to research the offline feedback on consumer behavior from the particular fashion brands and test the business concept then gather their perspective on it. Their response could be strong evidence to adjust the business model and consider the future operation plan for Muse. Limitation: The interview proceeded in merely five brands; some of the staff stated that it is not allowed to show opinion on behalf of their brands. As a result, most of the feedback was based on their individual’s opinion but not express the brand’s thinking. In the future development of the mobile app, it is essential to get in touch with the core leader in that particular brand.
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Secondary Research
The academic resources including report, journal, and books, they were used to collect information on macro and micro trends, as well as consumer behavior in the shift changing environment. They also provided a professional method on the brand building process, including some case studies example and some unique estimation on the future development in the studied field. Therefore, they could give professional knowledge on technical business knowledge which would benefit on building a feasible marketing and branding strategy.
VIDEO: TED TALK: Millennials: Who They Are and Why We Hate Them? The presentation aimed to contrast the Millennials with other generations by comparing their characteristics and living environment. These information was valuable for a new business to do a targeted marketing and communication plan if their primary customers are Millennials. Indepth research on a particular group’s living behavior and thinking pattern would lead the business to clarify the most profitable customer group. (Osterwalder, 2010)
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1: The Environment
1.1 Macro Trends 1.2 Micro Trends 1.3 Analysis and Opportunities
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1.1 Macro Trend - PEST Analysis Political “Brexit drama is far from over, and global fashion brands operating in the country face a prolonged period of uncertainty� Business of Fashion, 2019 With the Brexit situation far from over, business in the country faces much uncertainty in the period of political chaos. According to Business of Fashion, three significant challenges for fashion industry among Brexit time which are potential changes to immigration policy, currency fluctuations and the sharp increase in import and export costs. Therefore, these factors would finally cost more on the UK’s fashion industry and lead a negative result. Michelle Thompson, editor of ES magazine said, there are three-quarters of materials used in the UK are imported, the business will face more tariff problem to move their product across the border. The rising labor costs in many multinational business activities is also a factor that influences the final product price. There are around 10,000 EU citizens are employed in the UK fashion industry, and the Brexit would need business to pay more trade on these labor. As a result, it is hard to make a comprehensive plan for an uncertain future for the fashion business. It requires fashion companies to build flexible supply chains and delivery models including an alternative plan for warehousing, suppliers choice, labor resource, and even the product material to respond to the environment changes. At the same time, strengthening the risk management and financial plan is still essential because the risk from changes to trade agreements could disrupt the flow of goods and influence operating cost through the business activities. Fig.11
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Economical “ In many developed countries, economic growth rates have risen close to their potential, while unemployment rates have dropped to a historical low.� (Office for National Statistics, 2019) Based on the data from the United Nations, the world economy is expected to remain at three percent in 2019 and 2020, and the increasing disposable income of households had created more opportunities for international business. The European Commission declares that the fashion industry has grown continuously at around 10%. On the other hand, the employment rate (people aged from 16 to 64 years who were in work) in the UK witnessed a slight increase to around 75.8% compared to 75.4% for a year earlier. Also, the latest estimates showed the average weekly earnings for UK employees was increased by 3.3%. However, the situation is still not promising for the booming of the fashion business that the unemployment rate only declining slowly. There might be fewer people able to buy fashion products due to job instability and more cautious behavior among new employees. For those people who owned more disposable income and purchasing power, they might seek for more high-quality products. So, for the current development of fashion business, they must continue to be vigilant and agile to adapt to an ever-changing environment. They need to have a more precise aim of how they deploy the resource to become agile in the technical sense including working fast and always understanding the customer needs at the forefront.
Data from office for National Statistics, 2019 from
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Social “ The number of over 55s in the UK is set to grow 20% between 2014 and 2024. It means the over-55s will account for 32.7% of the total population by 2024, up from 29% in 2014� (Mintel A, 2017) It has been evident that the aging population in the past decades may threats some teenage-oriented business. The demographic changes are shrinking their competitive segment but providing some opportunities for retailers to respond to the changing as well. Typically, young consumers are driving fashion purchases, but in recent time, the aging population may compel some business to explore in new or more flexible marketing and retailing strategy. In this situation, for new and developing fashion business, it is essential to consider the mature group of customers and do some adjustment in their products. For example, they could offer more appropriate sizes and simpler designs with durable materials. The current communication plan is also needed to be improved: based on the consideration of their behavior, the recall of traditional advertising such as print poster and TV advertising is necessary, and the in-store shopping experience needs to upgrade to build a better emotional connection with them.
Fig.12
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Technological “ The new phase of globalization characterized by the exponential growth of cross-border bandwidth, connectivity, and digital data flow will alter the global playing field and bring opportunities to certain players.” (The State of Fashion, 2018)
Fig.13
The enhanced digital connectivity and the flow of data had led to greater globalization. The State of Fashion pointed out that, 40% of global devices and connections in 2019 will be machine-to-machine, which would bring a higher speed on tracking information and communicating among people. With the coming generation of 5G, the long-hyped technologies such as AR, VR and AI with upgraded higher rate would enable not only more luxurious digital experience but also mass adoption of new technologies among the public. (BoF, 2019)The faster, more stable and cheaper internet of 5G would stimulate the new business model to a new level for fashion retailing. At the backstage of fashion retailers, the information flow would facilitate and accelerated which would lead a better communication at the end. Same to the consumers, their sharing of fashion ideas and trends would be accelerated and magnified by the various social channels, the user-generated-content would be much more valuable in the fashion industry. As a result, the fashion industry would explore more opportunities such as low-cost advertising and marketing options, as well as some new technologies’ utilization. However, customer’s demands may have increased since the media continuously update the information, and their concern about privacy safety had upgraded. Therefore, fashion business has to be more sensitive to consumer’s changing need and respond to them quickly, then make sure their permission coverage is always manageable.
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1.2 Micr
o Trend
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- Individ ualism & Getting P - AI and ersonal AR in ac t i o - Mobile n Obsessed
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Fig.14
Individualism& Getting Personal
70% of consumers expect some personalized service from online business. - Linkdex, America 24
The personalization is the number one micro-trend in the current few years and will become more critical due to the increasing concern of individualism. ( The State of Fashion, 2018) Meanwhile, the concern of individualism had boosted by the raising of social media and other global platforms. From the focus group research, the average charge quantity for the social channel using daily was around 53% among 10 participants. The usergenerated content had turned
consumers to a spreader and creator in this era of information exploding; the social platform had become a place to express individuals opinions, style, and other unique characteristics. Therefore, the fashion brand and style they want is the one stand for a particular value and represent a more authentic story or concept through their communications. Tory Burch believes that customer today want “businesses with a purpose.� For this reason, fashion companies are likely to observe the current trend among customers and to use more storytelling and realism in their communication plan to express more value behind the product, then build a deeper emotional connection with their target audience.
AI and AR in action
Fig.15
More than 75% of fashion retailers willing to put AI into use and the technological enhancement will result in a more creative and interactive shopping experience. (BoF, 2018) Currently, this technology had used in trend forecasting, pricing, visual search and so on. An AI-based method for demand projection could reduce potential errors by up to 50 percent. BoF expected the economic benefit made by AI would rise from £ 450 million to £88 billion in 2025, and the fashion retailing would increase average spending by 5 percent in the next three years. (BoF, 2018) Same to the AR technology, many brands have had a widely use on this, such as the makeup brand L’oReal engaged
customers to test their beauty products on their phones, the download rate had achieved 20 million at last. In sum, the new technology would blur the line between online and offline experience and create an immersive environment for the shopping experience. BoF agreed that the improved technology had delivered more competitive advantages to the early adopters. Therefore, have a long-term and compelling strategy of digital utilization is vital for fashion brands to reposition themselves, it is also essential to confirm one approach that could deliver the most value of them and support their initial concept.
Fig.16
Fashion retailing would increase average spending in AI by 5 percent in the next three years. - BoF, 2018
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Fig.17
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The mobile app gives them the chance to “compare price and explore inspiration globally and instantaneously.” - CEO of Tory Burch, BoF, 2018
Online shopping is a stable growing trend and has become a habit among customers. (Fashion Online, 2017)
do more enhancement on their online environment, shopping experience, and delivery process; they want the more immerse connection between One of the reasons behind online and offline, combined this trend is the growth of with comprehensive service consumer’s obsession with that suitable for individuals. mobile. The CEO of Tory Burch mentioned that mobile technology had provided so Mobile Obssessed much information to customers which generated higher expectations and the strict The future improvement could requirement for business. It has focus on the frictionless checkhad more value than before; it is a out process online and mobile payment method, an inspiration wallets in-store, also have a resource, a retailing place and better integration through the more. Since people do most of social platform. The evolving their lifestyle through mobile technology types had provided phone, the “consumer psyche a broader and better choice for is changing fast.” (Amed.I, the fashion business to enhance Beltrami.M et al., 2019) The a comprehensive strategic plan technology leader such as and cover the factors including Amazon, Deliveroo, and Uber who, how, when and where have raised their expectation they will use. on speed and convenience; then this demand applies to the fashion industry as well. The fashion business is expected to
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1.3 Analysis
CHANGING DIGITAL FAST
There are two extreme situations showed above for the current digital fashion industry. Firstly, the macro environment is unpredictable in the recent years due to the unstable government policy, combined with the pressure from unemployment and aging population problems; fashion business is facing a series of challenges in the uncertainty environment. The dynamic environment may lead the apparel companies to rethink their pricing, sourcing strategic and employment issue in recent time, an adequate and flexible business plan is essential. On the other side, there are many new opportunities in the market at the same time. BoF report used three words to describe the future fashion industry with “changing,” “digital” and “fast” in 2019. (The State of Fashion, 2019) Currently, the fashion business is pushed to be more nimble and think digital-first in the macro environment. In the past 2018, the fashion industry has begun to blend in more activate and innovative to its strategic agenda.
Fig.19
Opportunities 1: An interactive online fashion environment that provides a platform for users to share and receive fashion ideas when they are shopping. 2: Unpersuasive sizing service and the real test for individuals. 3: Matching different brands’ clothing together which is the reality. 4: Combine virtual fitting and professionals’ advice with smooth user experience. 29
Fig.20
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2: The Idea 2.1 Concept Test 2.2 The Big Idea 2.3 Business Objectives 2.4 Brand Identity
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The primary research tested people’s behavior and opinion on the current fashion app; it also analyzed their feedback on the brand Muse. Their interest in matching different clothes had stimulated through an activity (See appendix) and the response had been researched to generate a new business idea to meet the unfulfilled opportunity of a brand new online app.
2.1 Concept Test
Fig.21
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Concept Overview
The concept overview had been shown to all the participants from primary research before they answer the questions, to inform they have a brief understanding of the business idea.
Appendix, Brand Interview Concept Overview
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ONLINE SURVEY , 128 PARTICIPANT ( See Appendix)
57.1%
81%
83.3%
88.1%
Want improvement on online try on experience
Return items because of size problem
Expect to view the outfit on their body before online buying
Expect to receive styling advice
Are you interested in the brand concept? If not, why? “Yes, it attracts me. It looks like very convenient and saves my time on trying products. I got more inspiration from matching them together and someone them did not look that pretty, but you look, when I pair the blouse to the skirt, they look brilliant.”
FOCUS GROUP ( See Appendix)
“Definitely yes, because I really need more inspiration and advice from others to help me out, and the app could help me match things together easier.”
If Muse want to collaborate with your brand, do you think it is necessary? If not, why? Brand Interview “ I think it is good especially for people who live in a busy lifestyle; they can have a see on what it would look like on buying a different kind of styles together on them. It is potentially could work, and need good marketing as well.” 34
( See Appendix)
“The brand is always looking to have a greater experience with customers, and start using technology to do that. And I think this mobile app would give more incentive for customers to come in the store.”
This positive feedback from both potential consumers and brands demonstrated the significant potential for the business idea to develop in greater depth.
Fig.22
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Loading... ... Your Muse Is On The Way
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& a e Id s s s e e v i n t i c s e u j B b 2 O 2.
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Business Idea A brand new fashion app Muse aims to bring the virtual fitting to everyone’s mobile phone; inspiring young people to try, purchase and share their fashion idea more efficiency here. Muse seeks to provide the real try on experience with professional styling advice because there is a strong belief that the better effect of upper body clothing is significant, the try on experience could be achieved for online shopping today.
MUSE
It is a booming time for the fashion industry to embrace the digital revolution. It will be an “inevitable and inescapable” development for all the fashion company. (Sandro, 2019, See Appendix) Therefore, Muse will launch as one of the early adopters to further improve and redefine the current online fitting process.
Homepange mock-up
The business idea started from a firm belief that enjoyable shopping experience should combine a real try on experience with other people’s advice and even stylists’ suggestion, it is impossible to provide a pleasant shopping journey with just one of them, same to the fashion online. To simplify the user experience and engage more customers, the AI model would be made once customer login and used forever. It merely needs users to take a selfie; then the AR technology would support this photo into a 3D visualized model face. The face would then combine with body shape; the shape details could adjust by personal sizing measurements and even the skin color. The final model would appear on the page all the time to ensure users could try on cloth immediately. Muse would also provide the QR code to each product in its offline store, aims to connect the online and offline shopping journey, ensure the offline customers could enjoy the service promptly by scanning the code and try on the clothing on their phone when they download the app. 38
First step for personal model building
Secondly, the online community Muse Palace would launch at the same time. As the research mentioned, the usergenerated-content in the new digital era shift the consumer as a participant rather than the target audience now. (Lefebvre R, 2016) Their shared information are becoming valuable now. So it is essential to build a platform for consumers to share their individuality and also create a deeper connection with the brand.
Weekly activity and other promotional message would show on the front page of Muse palace
Discovering page mock up
User could view other people’s outfit idea and contact stylist by clicking the community icon.
Your stylist is here
Online Community mock up
Therefore, users could upload their matching result on it and tag the brand name. Muse also care about providing fashion knowledge, the brand would have professional stylists to give tips and suggestions to some of the users’ posts, the information would also publish as a short reading material weekly on the community, aim to have a better communication with users, engage them to be a trend creator but not only the followers there.
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Business Objectives 1: Differentiate from the online shopping market and is a necessary process before the online payment. 2: Increase collaborated brand’s revenue to at least 20% of their profit. 3: To be the most interactive fashion app, provide personalized service and care about every user’s individuality. Fig.23
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Brand Identity Brand Name
Brand Vision Brand Mission
Brand Essence
The brand name came from Greek mythology, “Muse” is the inspirational goddesses of literature, songs, poetry, and arts(Google, 2019). In modern life, Muse represents the concept of “inspiration” which demonstrate the brand core value of providing fashion ideas and want to be a source that guides people to find a better style for themselves.
Muse will inject a new habit of online shopping and become a necessary process before payment. Muse strives to bring the virtual fitting to everyone’s mobile devices and guarantee a higher standard shopping experience with a carefully selected product range and professional stylist’s support. Shopping with fun, try it on your own.
Personality
Enthusiastic; Curious and Authentic
Brand Logo
The logo wants to highlight the role of “mirror” in people’s shopping journey. It consists of basic geometric figures that simplify the image of the mirror and the letter “M” which represent the brand name “Muse.” The three-dimensional letter “M” with two glitter points demonstrate the mirror’s reflection as well. The online community logo made up with a light bull shape which means the “ideas,” a crown stands for the name “Muse Palace,” and the overlapping letter “M” means the relationship between every user. The whole logo wants to illustrate the brand wish that engages every individual to participate and share their fashion ideas.
Colour Palatte
Colour Palatte R=255, G=174, B=223 R=102, G=45, B=145 R=251, G=176, B=59 R=241, G=90, B=36
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Fig.24
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3: The Market 3.1 Target Market 3.2 Market Analysis 3.3 Competitor Analysis 3.4 Market Positioning 3.5 Porter’s Five Forces 3.6 SWOT Analysis
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Female Millennial “48% of Millennials use smartphones for fashion.” ( Mintel, 2017)
3.1 Target Market Defining and understanding a specific target group is a core in the business plan, no matter how much money that spend in promotion, it will not be worth it if there is an incorrect target group positioning. (Singh H, 2018) A precise range of target audience could help practitioners to make marketing efforts and budget appropriately. (Dahana W D, Miwa. Y et al., 2019) Hence, the decision of Muse’s target consumer conducted through both primary and secondary research. Through the research, the primary target market for Muse tends to be the female Millennials. The primary reason is that they are more inclusive and tolerant of diversity which are core 44
characters to accept the new technical fashion app potentially. From the focus group research, 100% of the female aged between 22 to 30 years knows about the virtual fitting process through some channels, and they showed a positive attitude to this new technology. Participant Amanda said, “actually the initial concept of the virtual fitting is not like today’s new technology, but from a type of fashion game in my childhood.” She also mentioned the app like Muse would be interested in her because it would recall her memory, and now, all the clothing there could be bought online which was one of her dreams in the past.” (See Appendix,)
In the current decade, Millennials’ importance had highlighted in the fashion industry. There were 81% of UK Millennials have bought fashion items in 2017, and the data seemed to be growing in the next ten years. In general, their distinctive attitude towards living and purchasing are prominent, (Fernandes M, 2019) they also have found the “unbelievable ways to surmount the key challenges of adolescence,” said Scott Hess, from TED talk about Millennials. Meanwhile, their high acceptance rate of new things also increase their demand towards brands than any other generation, said Fernandes. The research from Hess showed that the most popular brands among Millennials were Apple because of their innovative design and their talent business idea which break the traditional roles of digital devices. So, for Muse’s future development, the primary considers of marketing and branding plan is to differentiate the brand concept with other fashion apps, try to provide some innovative and indispensable value and communicate them in a storytelling way which would contribute to better trust, commitment and emotional engagement with Millennials. (Fernandes, 2019)
Fig.26
Fig.25
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Customer Profile Customer profiles had been created to provide a visualized customer portrait after complete integration of from primary and secondary data. It is an essential step for a business to have a targeted marketing plan (Romdhane L.B, Fadhel N, 2009) because reliable customer models could lead to better profitability on further business activities. (Dyche, 2001) The primary data illustrated a massive expectation from the female Millennials on the brand Muse. Thus, the girl “Kelly” will represent this consumer group, and “Flora” will represent the second younger group of Gen Z.
HOMETOWN:
London
JOB:
Store manager
FASHION:
All Saints, French Connection, Sandro, Other Stories, ZARA
TECH:
iPhone, IPad, MacBook Pro, VR Glasses, Cannon Camera
APPS:
Instagram, Snapchat, ShopStyle, Zalando, Spotify
BEAUTY:
NARS, Chanel, BECCA, Dior
FOOD:
Pasta, Beef, healthy eating and on-the-go
HOBBIES:
Afternoon tea, park, film
MAGAZINES: Vogue FOLLOWS:
Art and Design, Celebrities, Bloggers, Designers, Fashion Brands
Fig.29
Kelly
Fig.28
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“ Really search your soul for what you believe in.” Fig.27
Fig.31
Flora “ Eye spy so much good stuff, you won’t know where to start.”
Fig.35
Fig.34 Fig.32
Fig.33
HOMETOWN
Leeds
JOB:
Student
FASHION:
ASOS, Topshop, Urban Outfitters, Converse, All Saints
TECH:
iPhone, MacBook Air, SAMSUNG Camera
APPS:
Instagram, Snapchat, VSCO, SoundCloud
BEAUTY:
MAC, Urban Decay, Benefit, Smashbox, NYX
FOOD:
Five Guys, Sushi and Chinese food
HOBBIES:
Party, Music Festival, Mobile Game
MAGAZINES:
Allure
FOLLOWS:
Fashion Brands, Celebrities, TV Series Channel, Bloggers
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3.2 Market Analysis & Segmentation - App Market - Mobile Commerce and Fashion App Market
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Fig.35
MOBILE APP MARKET
“AR had been utilized in the mobile app and it leads to an innovation direction for the mobile app market. “(Mintel A, 2018) App market data from Mintel, 2018
The overall mobile app market is growing fast, and the revenue expected to increase from £1500 million in 2018 to £3700 million in 2023 while there were merely 2.6% of total app revenues came from the paid app downloads (App Annie, 2018) over three-quarters of app users have not paid for premium access. However, the vast app users would still bring high revenue for their additional fees such as in-app purchase and membership cost. Therefore, free downloads and microtransactions are going to be the two leading reasons 50
that drive market.
the
booming
In recent years, developing technology such as Augmented Reality had been utilized in the mobile app and it leads to an innovation direction for the whole mobile app market. (Mintel A, 2018) For fashion retail in mainly, AI has been used to image searching or offer effective products viewing. These added value would boost the download rate, engage users to make the purchase and prevent being deleted quickly.
The booming of digital connectivity in the fashion industry raised the advent of omnichannel retailing, (Blazquez M, 2014) then the mobile commerce adoption and acceptance had shown growth with 4.2 million UK consumers engaging with mobile web sites in 2011. (IMRG, 2011)The data released by Google highlighted that “mobile is the future of retail” with 64% of smartphone shoppers used to explore fashion ideas before their shopping. Mintel stated that online fashion sales had increased to account for 24% of total fashion revenue in 2017 and online sales are expected to grow over £38575 million in the next decade. (Mintel B, 2017)
took place with 75% of customers buying the product from them, and it was because they’re continuously effort on engaging with young digital customers on through social platform.
In sum, the leading consumer in this market is Millennials that over 48% of them use a smartphone for fashion (Mintel B, 2017), which means that the communication strategy with these customers needs to be innovative, unique and immerse through a multi-channel way. At the same time, a successful design of the mobile environment would be a core element to induce purchase intentions further, trust and provide entertainment value and lead better consumer satisfaction and loyalty. The competitive market has reshaped (Chung, 2010; Yeah and Li, 2009) by some growing pureplay application such as ASOS and Boohoo in recent time. Although young women favor multichannel retail (86%), the purple still “Mobile is the future of retail”
(Business Insider, 2013)
Online fashion data form Mintel, 2017
MOBILE COMMERCE &FASHION APP MARKET
Fig.36
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FASHION APP SEGMENTATION The fashion app market is currently still in its infancy. Meanwhile, the market had divided into three broad groups:
Discovery App
Personal Shopping App
Brief: Provide various fashion products including clothes, shoes, and accessories from different retailers, this type of business do not hold inventory or management power, as well as shipping or payment process. USP: This type of platform would lead to endless inspiration for fashionistas and consumers to discover products they did not even know they wanted. (Smart Insight, 2017) Brief: Owned by individual fashion retailers, the platform would act more as a communication channel than a retail site. It could do personal service for the consumer, provide advice from store staff or directly communicate with the online service center. USP: These apps are a product of digital fashion industry and are particularly benefit the consumer who is brand loyalty and know precisely what they want. It can also make a better connection of online and offline shopping journey with an immersive service which could build a win-win environment for both brands and customers to receive feedback in time.
Brief: They provide universal checkout based on discovery platforms. They allow customers to purchase items from different retailers Fashion Aggregator App at once. USP: These apps have a relatively lower rate of basket abandonment than others because of the product diversity, these apps’ competitive power has become a threat for the traditional e-retailer and will become a development direction in the next decades. 52
Start Now
Fig.37
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GAP IN THE MARKET The business of Fashion pointed out that, fashion business have done many technical solutions to improve the online experience such as digital mannequins, and the tech brand Metail who provide the try on service to some major fashion brands. However, most of them were “Over Complicated and fragmented solutions,” the market and the consumer need for tools that are “low-friction, easy-to-use and engaging.”(Wang L, 2014) Meanwhile, stage one report recalled the attention back to the physical store which owns the most definite advantages of convenience fitting experience and professional’s guide beside customers. It can argue that the online fashion industry should remember the initial demand for shopping from their offline
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environment, combine these need and improve their online field by using digital infrastructure, that is what the market might need. In sum, it is crucial for fashion business to focus more on consumer shifts which linked to technology, social issues, alongside the potential disruption from the macro environment. And regardless of which development option they choose, security and privacy are still worth to be of great concern. The business who can accurately reflect the innovative and fresh operating ideas or have the courage to broke the traditional rules of retailing and show more brand attitude would emerge as winners.
OVER COMPLICATED AND FRAGMENTED
LOW-FRICTION EASY-TO-USE
Fig.38
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3.3 COMPETITOR ANALYSIS
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Muse would focus on its development as a discovering platform in the first three years and expect to move as a fashion aggregator platform in the future. Therefore, Muse should ensure its online environment is inspired and engaged through the communication plan because the potential users are both the group of hedonic and utilitarian shoppers. Wolfinbarger and Gilly(2001) posited that online shoppers with hedonic motivation look for enjoyment while shopping online; but the utilitarian motivation looks for the product price, usability, and functionality. (Sorce, Perotti, and Widrick 2005)
To have strong competitiveness in the market, its necessary to create a win-win environment for retailers and consumers. While brands get in, the depth information on user’s individual preferences and current topic and trend are critical in the era of “personalisation”; The B2B communication strategy would engage users to publish and receive the fashion idea on the platform. As a result, more sense of participation would be added to the “discovering” process, and the brand could be differentiated from the market.
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3.4 MARKET POSITIONING To further research the competitive environment, some major fashion apps had been considered as the potential viral for Muse. Their brand attitude on trying new technology and interactive online communication with customers are two main factors to concerned. As shown above, Muse would appear as a leader in the high tech fashion app field, along with its high-standard online chatbot service.
Currently, the personal fashion app which belongs to fashion retailers themselves are lack of high technology using, most of them are merely provide click-to-collect service which is not enough to engage people to buy on an app. On the other hand, the fashion aggregator app and discovering app are adopting the new technology such as image searching service, algorithmic trend analysing for personal preference and so on. Thus, the major competitors for Muse would be Zalando and Asos, in order to compete as a new brand, a clear and confident brand message should be delivered to the public. Muse will focus on combining technical skills and helpful human assistant to provide an integrated and higher-standard online shopping journey to stand out from the market. 58
BRAND USP Muse will act as an interactive app aims to provide an immersive environment for fashion discovery. The technical skill would transfer users to a participant and always care by the professional stylist team.
Fig.39
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3.5 Porter’s Five Forces Porter’s five forces are used to provide information as to which specific industry forces or resources and capabilities are the primary consideration for business. (Takata H, 2016) Overall, Muse is expected to be one of the leaders in the market due to its unique technique skills. Meanwhile, a brand new business with its particular business model would face more challenge and competitiveness in the market and always need to be sensitive to it’s viral’s action.
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PORTER’S FIVE FORCES
Supplier Power: (High)
The threat of New Entry (Mid)
The threat of Substitution (Mid)
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Supplier power needs to have a high and robust concern because the primary revenue would come from the 20% commission fee from the fashion retailers, which means that it is vital to persuade as much as a retailer as possible through a convinced B2B marketing and communication plan. To show the business potential to suppliers, Muse plans to launch a series communication projects including an online community, advertising campaign and other promotional activities in the first three years to ensure the brand awareness and influence. They would be strong evidence for Muse to demonstrate the high demand for fitting service among online customers and attract more suppliers to collaborate with Muse at last.
New entry business is not a substantial cause for concern as the brand focused on both technique and interactive fashion experience, meaning the barriers of entry is relatively higher due to the time and cost of building a technological fashion app is not as efficient as other fashion buying app. However, as an early adapter in this field, Muse would mostly test consumer behavior on this field, if successful, it is likely to evoke other rivals to add the similar service to their online site. So, a continual reinvestment on its IT development and in-depth communication with online consumers will, therefore, be vital to strengthen the brand value and remain the first choice of discovering fashion app for consumers.
Currently, there are a few similar viral that offering the virtual fitting service through an online shopping site. The ingredient brand Me-tail are extending the technical skill to some significant fashion retailers, but the public adoption was not as high as they expected. Muse would focus on both provide technical service to retailers and build an interactive online environment for consumers which is the current virals have not considered yet. Therefore, the relationship with users will be key for the brand to promote the brand and differentiate from others.
Fig.40
Buyers Power (Low)
Industry Rivalry (Mid)
As the brand’s principle was to provide a real experience reduce the friction and costs associated with customer returns, the target customer is thought to be the group who are positive living, love to try new things and have passion on fashion buying. The female Millennials have approximately 48% of online consumers which is a considerable number to target; Muse promises to provide mid to high-end products range so the buyer power would not be a big problem. Muse will merely need to maintain a high standard using experience on both technical site and human assistant site, there is the core brand value of providing one more guarantee before check-out.
The online fashion market showed a continued increasing trend in the next decades, there would be a higher demand for utilizing of AR technology, so the competitive environment would provide more opportunities to collaborate with a broader range of fashion brands to improve their online sale. Meanwhile, the brand still needs to focus on connecting with customers timely to strengthen the brand concept among users and upgrade the brand loyalty, to push the brand as an inevitable app during the online shopping.
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Fig.41
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3.6 SWOT ANALYSIS Efficient shopping: The newest and hottest clothing range based on buyers and stylist’s chosen. Real fitting and lower returning rate: Utilize people’s face and body look by using the AI and VR technology.
S
Automatic sizing: Once user type in their sizing detail, the further shopping experience would provide the exact size suggestion to them directly. Professional stylist advice: Online chatbot work for customers to communicate with the stylist. Online community: The community “Muse Palace” inside the app is a communication area for customers to collect peer’s fashion inspiration and recommendation, to explore their style. Weekly online activity: Higher engagement by joining in the vote for users’s favorite look every week, and the top five could receive an exclusive voucher. Fashion information: Fashion trend report and other information provided at the beginning of every season; news such as fashion week will follow up as well.
Technological improvement: Enable users to upload their existing clothing by using VR technology to improve the returning rate further. Unique brand range: Due to the globalization and increasing need for individualism, people are turning to adopt niche brand to express their attitude and characteristics. Muse could collaborate with these retailers in the future.
O
Exist as a mature technology: Develop as an essential step of online shopping to collaborate with more e-commerce website and app such as ASOS. Product range extension: AI and AR tech had owned more concern among makeup brand, Muse could develop on the cosmetics try on by using the facial recognition skill in the future. Service range extension: Utilize the fashion week as a resource to develop advanced service such as “VR catwalk show experience.”
Technological limitation: The AR technology has not owned a high adoption yet, and it would only work on the smartphone but not tablet devices currently.
Competitive environment: Fierce competition in the online fashion field, there is a high expectation of product ranges and shopping experience than before.
Target group limitation: Lack of attraction to male and older customers.
Privacy security: The problem of privacy security may become more serious when the app requires people’s real image of face and sizing detail; as well as the online payment process.
W
Privacy problem: Personal image may seem like privacy to influence people’s engagement to upload their photo. Product range: The current brand and product range are small which may limit customers’ chose. Muse would make more effort in this field in the following years.
T
Unstable social environment: Economic and political factors would influence Muse’s supply chain and even labor management.
Information error: Even though the virtual fitting technology has provided, the sizing suggestion is still an uncertainty factor to influence people’s user experience. 65
SWOT ANALYSIS To enhance the brand position in the UK, Muse should first recognize their strengths and weakness. Mintel pointed out that, the biggest problem for online shopping is the inability to try on products and it is hard to sizing through the screen. (Clothing Retailing, 2018) Muse’ service of offering real fitting experience could solve the problem and reduce the potential cost for returning. Compared to other online shopping platforms, Muse would broke the limitation among different retailers and realized the target of matching clothing from various brands on one body. Therefore, this strength would differentiate Muse between other e-commerce channels and develop as opportunities to collaborate with more fashion retailers in the future.
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Moreover, retailers should keep improving the shopping experience to make it more entertaining through the use of new technology, (Fashion online, 2017)and the stage analyzed a high demand for styling advice. Muse would reflect it in further communication activities such as the online community and fashion news report to provide a more appealing fashion experience for customers, to support them from inspiration gathering to the final purchasing decision.
User’s acceptance of new technologies has a direct impact on the app’s download rate. The new technology could cause weakness as well, especially the raising concern for privacy safety. It would lead to a more cautious attitude for digital infrastructure among customers and business. So, Muse needs to focus on guiding the process at the beginning and make sure users could receive help in time during the whole shopping process. In the future, Muse could keep exploring its advantage of virtual fitting technology and enable users to try on with their existing clothing, even bring them to the front row of a catwalk show. It is still essential for Muse to have a cautious decision on brand choices because of the raising concern for individualism and personal style. Niche brand that is rarely duplicate with others could be invited in the app. In conclusion, Muse would not only care about customer’s user experience but also act as a platform to do brand-building, help these brand to strengthen their brand image and utilize these brands to cover more different groups.
Fig.42
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Fig.43
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4: Marketing 4.1 Marketing Mix 4.2 Marketing Objectives 4.3 Three Year Marketing Overview - Year One - Year Two - Year Three
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4.1 MARKETING MIX Product The returning rate of fashion product was 50% which have made as substantial additional cost and waste for the fashion chain. (Mintel A, 2017)Muse will maximize the try on experience by using the newest AR technology for online shopping and present a more credible image for customers before purchasing. Muse believes an incredible shopping journey cannot exist without professionals and peer’s advice. The online community will make sure the timely suggestion from stylists and users could be received from different channels. As a discovering fashion app, Muse has a carefully considered range of fashion brands to make sure users could get in touch with the newest trend in the shortest time and generate their fashion ideas. Monthly fashion trend report would release on the community site based on last month’s hottest item among users. Their uploaded photo would be used in the report along with stylist’s comment and more matching example.
Price
People
Mintel stated that over seven in 10 people have not paid for app downloading in the last month and merely 2.6% of total app revenues come from the downloading fee. (Mobile Device App, 2018) Therefore, Muse will operate as a free downloading app to attract a larger group of users and invite them to try this experience.
A group of technology R&D(*Research and Development) team with top-level talents in the industry, aim to provide a smoother use of the application and support people to operate the AR technology.
The advanced member with £5.99 cost per months could be upgraded by users. It contains exclusive discount voucher unscheduled, unlimited gift wrapping service (valued £1.99 per time), more brands choice including highend brands and runway fitting experience. The optional choose to the advanced member would facilitate a better brand building for the luxury range and retain their superior brand value. 70
The professional and experienced stylist was there to offer reliable suggestion on fashion styling based on the individual’s style. Young and capable young buyers who have keen insight on fashion trend could ensure the product range are both high-quality and trendy. Excellent after-sale service will give shopping support 12 hours a day with patient, responsibility, and enthusiasm.
Promotion Online advertising: Youtube, Instagram, and Facebook advertising; E-mail communication; B2B press release and related event; collaborated brands’ official page and social account. Muse will ensure the promotional advertising are released through at least one social channel each month to maintain public awareness. 10% off on everything and half price experience on advanced service on £2.99 (Valued 5.99 per month) at the launching month. Influencers’ inviting to share their user experience on Muse at the second year. An online community to share and collect inspiration from others. Weekly vote activity for the hottest style and win the special voucher and experience advanced service free for one month. Physical Evidence Muse provides information on its app, business partnership, and website. All the products are supplied by the official brands directly and chosen by the professional fashion buyers to ensure the product quality and style at the beginning. The original logo of Muse with the chic design will have to develop into different style to differentiate the advanced users and the online community site. Muse will utilize recyclable packaging materials on the gift packaging to reduce pollution as much as possible.
Place: The main target region is the UK; future development will consider other nations in Europe and Asia. Mobile app for IOS; Online page only works for brand introducing and B2B communication.
Process Muse will start from the launching of the online community “Muse Palace,” designed for all users to share their fashion ideas and give their feedback for the app user experience. The weekly vote activity for the Top 10 fashion ideas would raise a better engagement built a connection with users. Muse guarantee the shopping and delivery process will be under the strict supervision to confirm user’s privacy security. Muse will be responsible for providing the £1.99 gift packaging service with brands. It contains additional wrapped gift box, greeting card with particular words and a free photo printing provided by the consumer. Muse will also spray elegant fragrance inside the box will be put inside as well to offer a joyful mood for the recipient. Customers would receive a detail confirm on their sizing and product choose before they buy to reduce the returning rate and other pollution on delivery. 71
The gift wrapping service Provide by recycable packaging material with wrapped detail; personalised colour choice.
Greeting card with words provided by the buyer; the brand information and downloade code would printe on the cover page.
MUSE
Fine envelope, receive with surprising.
Downloade Now
To my dear Laura:
One free photo printing.
Fig.44
ÂŁ1.99 per service OR Upgrade to premier membership (ÂŁ5.99 per month) and enjoy unlimited gift wrapping service. 72
Fig.45
GIRLS LOVE GIFT
Fig.46
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4.2 MARKETING OBJECTIVES
Fig.47
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1: To launch the interactive online community, raise brand awareness and download rate to 20,000 in the first three months. 2: To integrate the social platforms and engage the weekly activity, generate at least 2,000 photo sharing from the topic every month. 3: To attract ten more collaborated brands and increase their revenue by 20% of the total sale.
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4.3 THREE YEAR MARKTING PLAN OVERVIEW
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FIRST YEAR Launch and Redefine
Aim Raising brand awareness, bring innovative ideas to the public and recall people’s initial shopping desire to “try on” experience.
Overview: The first year marketing plan will work to ensure the rapid growth of brand awareness; the result would reflect in an increasing download rate and the annual revenue. Muse will utilize multi-channels to deliver the brand concept and recall consumer’s need of fitting experience on their online shopping site. The first year marketing plan will consist of three primary activities: online launching campaign collaborated freshers’ party and early preparation of the year two campaign. The print and video advertising will spread through social media platforms and traditional media including magazine and public billboard, while celebrities would not join in the first year communication plan but will be considered in the third year because the business is in its early period.
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SECOND YEAR Review and Reinforce
Aim Review the year one revenue, download rate, and the feedback through different channels to summarize the success and failures of the year one marketing plan. Launch the second year campaign and collaborate with some influencers aimed to raise the brand awareness further and create more value on the brand concept, not merely an online fashion brand with great technique, but also a brand with social responsibility and sustainability. At the same time, the brand will focus on collaborating with more brands and invite them through a comprehensive B2B marketing plan.
Overview: In year two, the brand awareness should have a specific increased; Muse will keep maintain an in time communication with customers through the online community site and track the schedule of weekly activities to ensure the engagement rate and consumer feedback. Another primary mission for year two is to bring more value to the brand and raise the public concern of pollution problem due to the over-frequent shipping process. Then, an integrated campaign would proceed to enrich the brand concept and strengthen the brand image among the public. Depending on the annual sales, Muse will keep considering further investment in more brands collaborations to reach new target groups then increase the brand competitiveness and market share.
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THIRD YEAR Brand Expansion
Aim Brand ambassadors and celebrities collaboration; Attract more fashion retailers to be partners.
Overview: The brand’s initial unique selling point was the great combination of try on experience and professional styling advice which built a better online shopping environment for customers. As the brand has differentiated from the online fashion market, innovation and adaptability will always be the core factor in its marketing plan. The ideal business aim is to inject a necessary process before the online checkout. Hence, it will need more effort to B2B marketing because of the more range of brands collaboration, the higher usage rate among consumers. Therefore, Muse will focus more on brand expansion and collaborate with fashion activities such as fashion week. At the same time, celebrities would be invited as the brand ambassadors to keep the fresh brand concept and raise further awareness. In the third year, Muse will start the preparation for the experiential pop-up store in the next year fashion week as well, aim to generate more attention in the fashion industry. Lastly, the cooperative efforts with retail partners will support the brandbuilding initiatives and achieve a win-win result. (Jodie.L, Brian.P, 2011)
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Timeline B2B Communication App and IT Building
Year One
Jan
Feb
Launching Project
Mar
Apr
May
B2B Communication Influncers 7dayslater Campagin
Easter Promotion
Year Two Jan
Feb
B2B Communication
Year Three 80
Celebrity Endorsement
Jan
Feb
Mar
Apr
May
B2B Communication Easter Promotion
Mar
Apr
May
B2B Communication Uni Collaboration
Jun
Jul
Aug
Sep
Chrismas Promotion
Oct
B2B Communication Celebrity Endorsement
Jun
Jul
Uni Collaboration
Aug
Brand Expansion
Jul
Dec
B2B Communication
B2B Communication
Jun
Nov
Sep
Chrismas Promotion
Oct
Uni Collaboration
Sep
Dec
B2B Communication
Pop-Up Wam Up
Aug
Nov
Oct
Chrismas Promotion
Nov
Dec
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Fig.47
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5: Communication 5.1 B2B Communication 5.2 Brands Range 5.3 B2C Communication - Launching Project A - Activity B - Activity C
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5.1
Business To Business
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There is a growing interest in business-to-business firms in a competitive environment. (Lynch.J, Chernatony.L, 2004) From the primary research, the face-to-face interview to 5 potential collaborated brands highlighted their interest in joining the mobile app Muse. (see appendix ), a comprehensive B2B communication plan is necessary for Muse to operate and attract more fashion retailers.
the benefit that Muse could bring to them such as the QR code in-store. Therefore, Muse would achieve this demand by applying QR code in-store for the items that in the product range, to let in-store customers try the virtual fitting service and the Muse app by scanning the code, It would reduce the friction from online to offline. At the same time, the original video, print image, and press release would be published to them.
In the B2B communication plan, Muse would demonstrate the compelling value proposition and show the potential development in the future; it would begin with in-depth market research and strategic planning, then organize an official event to attract potential partners. Moreover, the staff from Whistle pointed out that it is essential to show
As a new brand in the market, Muse will lastly charge 20% commission fee from the fashion retailers in the first three years. Meanwhile, the brand will demonstrate its ability to operating engaging PR activities and timely communication with customers. Establish further relationships with Muse.
Why Choose Muse Experience?
Higher Engagement
Increase Conversions
Boost customer loyalty
Reduce Returns
Know your shoppers better
Muse seeks to provide the real try on experience with professional styling advice because there is a strong belief that the better effect of upper body clothing is significant, the try on experience could be achieved for online shopping today. A New Way to Discover Fashion
ONLINE WEBSITE FOR B2B COMMUNICATION
Every body is unique, so finding the perfect fit can be challenging. We help you connect with your consumers and provide our stylist to help their decision making. How it Work
We Offer You Appealing Campagin
Diverse Collaboration
Mature Tech
Online Community Activity
Muse Watch the Video
Discover the future of
Online Shopping Trying on clothes online is proven to increase engagement and overall sales. It’s time for digital evolution! Learn More
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5.2 BRAND RANGE To access the real feedback from the potential collaborated brand, a face-to-face interview with fashion brands had been proceeding for the primary research. (See appendix) The final six brands were chosen based on their response to Muse’s brand concept, their target groups, and current market performance. The number of brands would expand each year to meet more customer need. The future brand range had been assessed as well. Muse will focus on niche brands to fulfill the current public demand authentic brand which could express their individuality. The make-up brands also are considered in future brand expansion.
MUSE Shopping with fun, Try it on your own
MUSE 86
Shopping with fun, Try it on your own
Future Range Opportunity
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5.3
Business To Customers This digital era had created an excellent chance for omnichannel retailing. Mintel predicted the online fashion sales would keep growing in the next ten years with a considerable number of the millennials customer group. (Online Fashion, 2017) To compete and differentiate from other competitors, Muse needs to strengthen brand value and enrich the brand image. Therefore, the brand will keep an intimate connection with the brand’s audience by operating an integrated marketing and communication plan. The following DRIP model is used to set up a broader communication goal and analyze the best practice activities. (Kanev.T, 2016)
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DRIP Model
Fig.48
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LAUN
CHIN
G PR
OJEC
T
The fi rs recogn t year comm i and in tion and tra unication p la sp n downl iring shop smit the co n will targe pi t re o activit ading and u ng experien brand val to create br u a sage r ies’ ef ate wi ce. The ove e of intera nd fect. c ll be m ra t onitor ll applicat ive i ed to e o valuat n’s e the
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LAUNCHING PROJECT Background: Since 2012, the advent of Web 2.0 technologies has enabled more efficient creation and distribution of user-generated content(UGC, (Terry, Matthew, and Eastin, 2008), the role of users had reframed from co-procedures to distributors. (Arne, 2018) Spiller and Baier stated that the power of UGC has “puts the image of a brand in the hands of consumers.� (2018)
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By the raising power of usergenerated-content which generated, the data-sharing today is not limited by the demography and geography anymore. In this case, the first launching campaign “Take my muse” would focus more on the online community, the platform for all users to share and receive fashion ideas. The word “Muse” in the topic could seem as “inspiration” which transmit the brand’s essence. The first step would be launching its first advertising video through online channels including social accounts and Youtube advertising, as well as collaborated brands’ official page.
# TAKEMYMUSE
Muse will utilize the online community Muse Palace as a starting point to communicate with the audience. The campaign will engage people to share their daily looking by taking the photo in front of their mirrors and upload to the online community with the hashtag of #takemymuse; Muse would release its first series of filters to upgrade a higher enjoyment rate. Sharing to their social account is also encouraged because the final objective is to receive “Like” as much as possible and become the Top 5 weekly Muse. During the first month of launching, Muse would provide a 10 percent discount to all products to attract new customers. The campaign’s vote activity will provide prize including 15% off voucher, one-month free advanced service, (Worth £5.99 per month) and professional stylist’s further suggestion on their looking.
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ACTIVITY B Fig.49
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By considering the target audience which is Millennials and Gen Z, the university would seem like an ideal place to popularize the brand new fashion app and target to more potential customers. Muse would collaborate with at least five universities in the UK to support their freshers’ night party which is an exciting event for all the universities student to join in. During this period, there would be a higher demand for new clothing and fashion ideas which is an opportunity for Muse to spread the brand concept at the correct time. The brand name and overview would be printed on the brochure, ticket and universities’event page to access more students.
This communication activity would become one of the key events for Muse to launch every year, aim to highlight the brand image and the personality of Enthusiastic, curious and authentic.
MUSE
GIRLS LOVE PARTY
Muse would release student discount in September to engage more target consumers.
GET YOUR UNI DISCOUNT ! Code: fresherme
Student discount code would show on the online community site and introduce the activity as well.
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ACTIVITY C Background: In the booming era for e-commerce, Muse has recognized the duty of the fashion industry of being sustainable and eco-friendly. As a result, it started from a simple aspiration of bringing people a chance to try on clothing for their online shopping because Muse believes a good fit on effect is the crucial factor for shopping factor, and it could reduce the returning rate in some ways.
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At the end of the first year, Muse would prepare the campaign January in the following year, which is the month after the Christmas holiday: the time that would lead people to do some impulse buying. In this campaign, Muse plans to highlight the reason why the business started and transmit the fact that “Knock-on effects of online shopping may worsen traffic congestion and transport-related carbon emissions.” (TheGuardian, 2019) To be specific, the 7 or 14 days period that let people check and consider whether to keep or return the clothing in the return policy is well-known among the public. This campaign will encourage people to use seven days as efficiently as possible.
DAYS LATER LESS RETURN, LESS POLLUTION
The worst clothing is the one you don’t know its value yet
MUSE
Fig.50
Detail: 1: To share the product they want to return on the community page and tag the service center as well as the topic of #7dayslater 2: The after sale service will contact them as soon as people, if there is no problem of the products’ quality but just style, the stylist would contact with consumer quickly and have a deeper communication with them of how to change or match the clothing, such as some understanding of customer’s existing clothing. 3: People could try these suggestions and upload the matching picture again to the community to have peer’s advice. If they still decide to return this product, it is still permitted to return with good condition.
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SUPPORTING ACTIVITY In the second year, 3 Influencer would be invited to share their user experience on Muse to reach a broader target group and generate a topic is a shorter time. The influencer range would expand each year to maintain public awareness and cause topic among customers. The influencers choose considered based on their style and the style of posting image. Muse want these influencers are fashionable and have their personality on styling. They also required to have an affinity to their followers and a positive attitude towards life.
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GIRLS LOVE INFLUENCER
Fig.51
“Out of 86% marketers who used influencer marketing in 2017, 92% of them found it useful” “Four in ten millennial subscribers say their favourite creator understands them better than their friends.” - Linqia’s research (2018) Fig.52
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Fig.53
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6: Finance 6.1 Start-Up Cost 6.2 Raising Capital 6.3 Sales Forecast 6.4 Income Statement and Marketing Budget (First Year) 6.5 Profit and Loss (Three Year) 6.6 Cash Flow
101
7.1 Start-Up Cost To have a careful consideration of capital measurement is essential for a new business. The start-up cost for Muse made up with all the financial pay before the official launching. The core expenditure is the technology cost and the subsequent improvement for the IT site; it needs professional labor with talent skill to develop an easy-to-use application combined with the high-end technology. In consideration of the application form and the potential requirement for several techniques, the software development cost would around ÂŁ160,000 (Thinkmobiles, 2019) and the labor cost for approximately ÂŁ186,000 due to the need for technical labor. (See appendix, Human Resource )
Meantime, B2B communication would cost a big part before launching. (See Appendix, Marketing Budget) As well as the preparation for the marketing activities including online and offline advertising are two essential routines before launching, which would cost ÂŁ66,500 (See appendix, Marketing Budget) The investment on this two site would help Muse to attract more potential partners and play a key role for brand development in the future.
102
B2B website mock up
B2B communication plan before launching
Investors list
7.2 Raising Capital
The initial cost would raise from three fitting and technology mobile app are significant sources: crowdfunding, bank two critical factors for Muse to consider loan, and investments. as their investors. (See appendix) Then, the investment companies that have Crowdfunding would account for the most collaborated with the brand Fit.me - the prominent part for around £160,000. As a mobile app that also apply virtual fitting brand new app, it is the most efficient way services are taken into account. In return, to receive support on not only financial the investment gains ten stakes of business site, but also get feedback and suggestion when they invest £100,000. The backing on future improvement. (NIBusiness, from the technology interested investment 2019) However, Muse needs to protect company would be a recognition of the brand concept at the very beginning Muse’s value, and they would support to avoid patent or copyright from the Muse to launch with confidence. crowdfunding process. On the other side, the financial source from bank and other technology interested investments would be appealing. Tiarawut stated that the recent growth of the mobile application market opens up the opportunity for a new type of entrepreneurs to get into it. (Tiarawu.S, 2013) Therefore, the interest in virtual
Fig.54
103
7.2 Sale Forecast Sales forecasting is them prefer to receive prominent in fashion styling advice from retailing, but it is professionals as well. also difficult due to Moreover, Muse aims many factors from to provide not only the external and internal. virtual fitting service (Ni.Y, Fan.F, 2011) but also low-friction The sales prediction and engaging service to have been calculated users. So the adoption based on consumer group size and rate of Muse would be relatively competitor’s current performance. higher than the competitor Metail(3%), the brand that only The primary customer group would provides virtual fitting service and be female Millennials who prefer going to achieve 5% download online buying. Mintel research rate when it launch. The number pointed out that there were 48% of of download rate would keep a Millennials use a smartphone for gradual increase and make 15% in fashion items, so the total potential the third year due to the continued customers had been calculated to communication activity, contains 2.9 million (See appendix, Sale the second-year big campaign and forecast). Through the primary influencer marketing. research, 83% of participant wanted to use virtual fitting service before they are buying and 89% of
Evidence for sale forecast, see appendix Sale Forecast for detail
104
As the download rate keeps increasing, the buying rate expects to maintain around 20% of total users among three years. During the particular time, such as Easter holiday and other marketing activities, the sale would show an upward trend among these time and achieve a peak in every September due to the universities collaboration, more target group will be attracted, and there would be a higher demand for fashion items before school opens. The number would decrease slowly in the following month and return to the peak in Christmas time. The sale for premium membership which includes unlimited gift packaging service would have a higher revenue during the festival and remain 15% of active users. (See Appendix, Sale forecast) Three year profit and loss, see appendix for 12 months detail
See 12 months detail in appendix, 3 years profit&loss
105
7.3 Income Statement & Marketing Budget
As a start-up company, Muse aims to build a strong connection with fashion retailers and consumers through the communication strategy, so in the first three years, the brand would ask 20% commission fee for each purchase which is a competitive price compared to other apps. The returning rate had been considered as 35% (See appendix) which is lower than other fashion apps due to the exclusive technology and service that Muse would offer, so there will be no extra cost for online sale for Muse. Another revenue would come from the premium membership. The first-month upgrade rate would be around 15% of total users due to the half-price promotion on this service. (£2.99, original price £5.99) Then, the upgrade rate would decrease gradually in the following month because the price would return to £5.99 and the slack season among the fashion market. However, the premier membership number would rise in September due to the university collaborated activity, as well as December, the time when people prepare the Christmas holiday. First year profit and loss [Company Name] Profit and Loss (P&L) Statement [GBP £]000
2020 JAN
FEB
MAR
APR
MAY
JUN
JUL
Aug
SEP
OCT
NOV
DEC
Full Year
Online Sale
0
0
0
0
1500
1900
2100
2600
3100
2600
2300
3200
19300
Advertising
0
0
0
0
0
0
0
0
0
0
10
10
20
Premium Membership
0
0
0
0
65
87
100
90
130
110
95
150
827
Returns, Refunds, Discounts
0
0
0
0
-680
-740
-820
-990
-1200
-1000
-880
-1200
-7510
Total Net Revenue
0
0
0
0
890
1247
1380
1700
2030
1710
1525
2160
12637
Gross Profit
0
0
0
0
230
320
360
412
510
430
390
560
3212
- ) (
- ) (
Expenses App Building and Technical Improvement
40) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
160.0)
Advertising & B2B Communication (
12) (
17) (
27) (
73) (
152) (
116) (
20) (
76) (
124) (
20) (
10) (
224) (
871.0)
Insurance
(
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
1.2)
20
20
20
20
13
8
8
8
13
8
8
8 (
154.0)
(
IT & Maintenance App Store Office fit out & Supplies Rent Salaries, Benefits & Wages
40) (
40) (
40) (
0
0
0
0
0
0
0
0
0
0
0
0.07 (
0.1)
12.5
0.2
0.2
0.2
6.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5 (
23.1)
3
3
3
3
7
7
7
7
7
7
7
7 (
68.0)
35
35
39
33
43
43
42
42
42
42
42
42 (
478.6)
Benefit (30% salaries)
(
11) (
11) (
12) (
10) (
13) (
13) (
13) (
13) (
13) (
13) (
13) (
13) (
143.7)
Utilities
(
0.3) (
0.3) (
0.3) (
0.3) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
5.2)
0
0
0
2)
0
0
2)
0
0
2 (
6.0)
Business Travel
0 (
0 (
Entertainment
(
0.5) (
0.5) (
0.5) (
0.5) (
1.0) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
1.5) (
7.5)
Accountant Fee Trademark and Business Registeration
(
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
1) (
1.0)
(
1.0) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
1.0)
Total Expenses
(
134.8) (
126.5) (
142.3) (
180.0) (
238.5) (
189.0) (
90.7) (
146.7) (
201.7) (
90.7) (
80.7) (
298.8) (
1,920.4)
Earnings Before Taxes
(
(134.8) (
(126.5) (
(142.3) (
(180.0) (
(8.5) (
131.0) (
270.0) (
265.0) (
308.0) (
340.0) (
310.0) (
260.0) (
1,291.9)
Income Taxes 20%
(
- ) (
- ) (
- ) (
- ) (
- ) (
26.0) (
54.0) (
53.0)
61,6 (
68.0) (
62.0) (
52.0) (
315.0)
-8.5 (
105.0) (
216.0) (
212.0) (
246.4) (
272.0) (
248.0) (
208.0) (
915.3)
-487.1
-271.1
-59.1
187.3
459.3
707
915
Net Earnings
-134.8
-126.5
-142.3
-180
Breakeven
-134.8
-261.3
-403.6
-583.6
106
-592.1
Marketing budget for the first year.
On the other hand, the most significant cost for Muse would be the marketing activities including the B2B and B2C communication (See detail in Marketing Budget Table) because the primary task for Muse as a discovery brand is to connect with customers and retailers as much as possible which would be fulfilled through a step-by-step marketing plan. Overall, Muse would act as a highly profitable brand that expects to turn the first profit in August. Despite the start-up cost, Muse would gain approximately ÂŁ90 thousand at the end of the first year. Due to the positive benefit of year one, Muse will not need further external investment in the following years. Meanwhile, Muse needs to invest around ÂŁ100,000 more on marketing activities such as brand ambassadors and campaign to keep brand awareness and invite more fashion retailers to achieve customer demand. The sale would be initially low by asking new brands in-app but would increase in several months. (Startups.2019)
2021
2022
See 12 months detail in appendix, 3 years marketing budget
107
7.4 Cash Flow
According to Almeida, cash flow table highlights the difference between the available cash at the beginning and the end of the accounting period. (Almeida H, 2004) For the brand Muse, the money would come in commission fee from fashion retailers, premium membership fee and third-party advertising fee; the outgoing consist all the expense on the profit and loss template. (See appendix, three years profit and loss) Muse as a high-technology fashion app need approximately ÂŁ590,000 as the capital requirements, it would receive investment at the beginning of the year from the crowdfunding, bank loan, and other investment agency. In sum, the cash flow shows Muse would maintain a positive financial situation in the first year.
c
Cash flow forecast
From Profit and loss Incoming +
jan Incoming revenue Cash injection Total revenue
From Profit and loss
Less Outgoing Total o/hs Opening balance cash Add incoming cash + Deduct outgoing cash Closing Cash Equals balance
feb
mar
apr
may
june
jul
aug
sept
oct
nov
0
0
0
230
320
360
412
510
430
390
560
590 0
0 0
0 0
0 0
0 230
0 320
0 360
0 412
0 510
0 430
0 390
0 560
-134.8
-126.5
-142.3
-180
-238.5
-189
-90.7
-146.7
-201.7
-90.7
-80.7
-298.8
590 0 -134.8
455.2 0 -126.5
328.7 0 -142.3
186.4 0 -180
6.4 230 -238.5
-2.1 320 -189
128.9 360 -90.7
398.2 412 -146.7
663.5 510 -201.7
971.8 430 -90.7
1311.1 390 -80.7
1620.4 560 -298.8
455.2
328.7
186.4
6.4
-2.1
128.9
398.2
663.5
971.8
1311.1
1620.4
1881.6
First year cash flow
108
dec
0
MUSE
Shopping with fun, Try it on your own
109
Fig.55
110
7: Future 7.1 Risks Measurement 7.2 Success Measurement 7.3 Future Development 7.4 Conclusion
111
112
7.1 RISKS MEASUREMENT
113
7.2 SUCCESS MEASUREMENT
114
To measure the success and check the business performance is crucial for fashion business to review the effectiveness of strategies and have a better prepare for further action. The model of key performance indicators (KPI) would be used to demonstrate how effectively Muse is achieving its key objectives. (Klipfolio, 2019)
115
7.3 Future Development The Ansoff Matrix model is used to understand the potential growth strategies for Muse to utilize in the future. Due to the virtual fitting is still on its early period for customers to adopt, Muse’s primary mission is to popularize and reinforce the current usage of the public and made it become a habit.
116
As a fashion discovery app, it is essential to chase up the latest fashion trend and reflect them on the brand range choice as well as the advertising. For market penetration and development, to use advertising and public relations are the most creative and intelligent fashion communications to manage brand awareness and future development quicker. (Cope.J, Maloney.D, 2015)
Fig.56
On the other side, brand expansion in the future would be launching cosmetics to try on experience. The stage one report highlighted some makeup brands’ effort on this technology such as M.A.C and Charlotte Tilbury (BoF, 2017), they used mobile app as a touch point to test their new range of lipsticks and promote the product at the early stage to its audience and it could be a development direction for Muse to access in the future.
缪斯
#MUSECHINA Fig.57
Moreover, Muse aims to expand the brand geographically as well. China would be the primary consideration for the brand in consider of the country’s strong purchasing power and the popularization of 5G in the recent time; they would provide a larger group of customers and a higher adoption on new technology to Muse. Therefore, the brand expansion would require further effort on technical improvement and marketing communication to adapt to the new environment and fresh market. Overall, to spread the brand idea to the public and guide people to use it will be the principal aim to operate the marketing activities. The engaging marketing plan would generate a higher adoption of Muse which is the fundamental factor to expand the brand range in the future. 117
FASHION WILL
NEVER BE ALONE Fig.58
118
7.4 Conclusion In conclusion, the report has met all the objectives and achieved the aim to apply an innovative business idea along with a practical marketing plan. The primary and secondary research have revealed a need for both virtual fitting and human assistants’ help. Therefore, the brand Muse would combine these two needs to enhance the online shopping environment and provide a less friction experience from online to offline. As the brand believes that fashion should always be enjoyable and not alone, it needs a better
combination of real fitting and other’s advice. Moreover, with the future development of 5G and digital connectivities, the opportunities for combining technology in the fashion world would increase dramatically. More types of fashion retailers could be invited to Muse including cosmetics range, and the brand aims to evolve to a better fashion discovery app to cover all fields and meet the vision that “inject a new habit to online shopping and become an indispensable process before payment.”
119
120
BOOK
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APPENDIX Sale Forecast Detail
Millennials: Born between the mid-1980s and the late 1990s, there were approximately 12 million millennials in the United Kingdom in 2017. (Statista, 2017) Female Millennials: Female population accounts for 50.61% of the total population in the UK in 2019. (World population review, 2019) Online Shoppers: 48% of Millennials use smartphones for fashion items in 2017. (Mintel A, 2017) Therefore, it can expect that 48% of female millennials (6 million) prefer buying items through the fashion app, so the total potential customer group for Muse could be 2.9 million. Download Rate: “You see sub-three percent adoption rates,” said Tom Adeyoola, founder and chief executive of Metail, an ingredient brand for virtual fitting online. (BoF A, 2014) Muse will not only apply the technology but also appealing communication activity and styling advice, so the download expects to achieve 5% in the first year and grow to 15% in the third year. The buying rate expects to achieve 20% of total users by considering the launching campaign and exclusive discount in the first month so that the number could be 21.8 thousand. As the brand range which is mid to high-end fashion retailers, the average price per purchase is going to be £50. Returning Rate Mintel stated that, 56% of female online shoppers and 60% of women aged between 25 to 44. By considering the virtual fitting and stylist’s communication service, the returning rate expected to decrease to 35% of total sale. The returns, refunds, discount column contains the 10 percent discount for premier customers and 35% returning rate of total sale. Muse is a B2B based fashion app, so there is no cost for product. The brand would ask a 20% commission fee for each purchase, so the gross profit is the commission fee of total revenue plus premium membership fee. 130
Year Two Profit and Loss MUSE 2021 Profit and Loss (P&L) Statement 2021
[GBP £000] JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Full Year
Online Sale and Premium Membership
(
3,480.0) (
3,420.0) (
2,940.0) (
3,290.0) (
2,980.0) (
3,260.0) (
3,200.0) (
2,870.0) (
3,490.0) (
3,150.0) (
3,170.0) (
3,510.0) (
Advertising
(
- ) (
10.0) (
10.0) (
10.0) (
- ) (
10.0) (
- ) (
10.0) (
20.0) (
- ) (
- ) (
20.0) (
90.0)
Returns, Refunds, Discounts
(
(932.0) (
(996.0) (
(903.0) (
(1,120.0) (
(1,008.0) (
(1,206.0) (
(1,054.0) (
(951.0) (
(1,186.0) (
(1,103.0) (
(1,075.0) (
(1,530.0) (
(13,064.0)
Total Net Revenue
(
2,548.0) (
2,434.0) (
2,047.0) (
2,270.0) (
1,972.0) (
2,064.0) (
2,146.0) (
1,929.0) (
2,361.0) (
2,047.0) (
2,095.0) (
2,000.0) (
25,913.0)
Cost of Goods Sold Gross Profit (20% commission fee+ advertising)
(
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- )
(
490.0) (
463.0) (
417.0) (
425.0) (
375.0) (
389.0) (
410.0) (
364.0) (
437.0) (
389.0) (
399.0) (
396.0) (
4,954.0)
Advertising & B2B Communication
(
173.0) (
112.0) (
30.0) (
98.0) (
45.0) (
52.8) (
60.8) (
30.0) (
159.0) (
36.8) (
35.0) (
142.8) (
975.2)
Insurance
(
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
0.1) (
1.2)
IT Maintenance
(
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
36.0)
App Store
(
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
0.1) (
0.1)
Office Supplies
(
4.0) (
4.0) (
3.5) (
4.0) (
3.5) (
3.5) (
3.5) (
3.5) (
3.5) (
3.5) (
3.5) (
4.0) (
44.0)
Rent
(
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
84.0)
Salaries, Benefits & Wages
(
48.0) (
48.0) (
42.0) (
42.0) (
42.0) (
42.0) (
42.0) (
42.0) (
42.0) (
42.0) (
42.0) (
42.0) (
516.0)
Benefit (30% of salaries)
(
14.0) (
14.0) (
13.0) (
13.0) (
13.0) (
13.0) (
13.0) (
13.0) (
13.0) (
13.0) (
13.0) (
13.0) (
158.0)
Utilities
(
0.6) (
0.6) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
6.2)
Business Travel
(
2.0) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
2.0) (
- ) (
2.0) (
6.0)
Entertainment
(
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
6.0)
Accounting Fee
(
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
1.0) (
1.0)
Total Expenses
(
252.2) (
189.2) (
99.6) (
168.1) (
114.6) (
122.4) (
130.4) (
99.6) (
228.6) (
108.4) (
104.6) (
216.0) (
1,833.7)
Earnings Before Interest & Taxes
(
237.8) (
273.8) (
317.4) (
256.9) (
260.4) (
266.6) (
279.6) (
264.4) (
208.4) (
280.6) (
294.4) (
180.0) (
3,120.3)
Interest Expense
(
53.5) (
53.5) (
53.5) (
53.5) (
53.5) (
53.5) (
53.5) (
53.5) (
53.5) (
53.5) (
53.5) (
53.5) (
642.0)
Earnings Before Taxes
(
184.3) (
220.3) (
263.9) (
203.4) (
206.9) (
213.1) (
226.1) (
210.9) (
154.9) (
227.1) (
240.9) (
126.5) (
2,478.3)
Income Taxes (20%)
(
36.9) (
44.1) (
52.8) (
40.7) (
41.4) (
42.6) (
45.2) (
42.2) (
31.0) (
45.4) (
48.2) (
25.3) (
495.7)
Net Earnings
(
147.4) (
176.2) (
211.1) (
162.7) (
165.5) (
170.5) (
180.9) (
168.7) (
123.9) (
181.7) (
192.7) (
101.2) (
1,982.6)
38,760.0)
Expenses
Year Two Marketing Budget CHANNEL MARKETING BUDGET Marketing Activities(£,000)
2021
Easter Promotion
PR #7dayslater
Uni Collaboration
Christmas Promotion
Online
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Total
App Filter
5
0
5
5
0
5
5
0
5
5
0
5
40
40
20
0
0
0
20
0
10
0
20
0
0
20
90
90
5
5
0
0
0
5
0
0
0
0
0
5
20
20
20
20
20
20
20
0
0
25
40
0
0
25
190
190
20
20
0
10
0
10
20
0
20
20
0
25
145
145
Youtube
30
30
0
20
0
10
20
0
20
0
20
25
175
175
E-Mail Newsletter Online Community Improvement
Channel Cost
Advertising Cost Online
25
0
0
20
0
0
0
0
25
0
0
15
85
85
10
10
0
8
0
10
0
0
10
0
10
6
64
64
Celebrity Endorsement
4
4
4
4
4
4
4
4
4
4
4
4
48
48
Influencers
2
2
1
1
1
2
1
1
1
1
1
1
15
15
25
20
0
10
0
0
0
0
10
0
0
10
75
75
Market Research and strategic planning
0.5
0.5
0
0
0
0.5
0.5
0
0
0.5
0
0.5
3
3
Press Release
0.3
0.3
0
0
0
0.3
0.3
0
0
0.3
0
0.3
1.8
1.8
Outdoor
B2B Communication
Event, Exhibition
1
0
0
0
0
1
0
0
0
1
0
1
3
3
Video and creative image
5
0
0
0
0
5
0
0
0
5
0
0
15
15
Uni Collaboration
Total:
0
0
0
0
0
0
0
0
4
0
0
0
4
4
172.8
111.8
30
98
45
52.8
60.8
30
159
36.8
35
142.8
974.8
974.8
131
Year Three Profit and Loss MUSE 2022 Profit and Loss (P&L) Statement 2022
[GBP £000] JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Full Year
Online Sale and Premium Membership
(
3,690.0) (
3,650.0) (
3,140.0) (
3,580.0) (
3,370.0) (
3,610.0) (
3,690.0) (
3,800.0) (
3,710.0) (
3,750.0) (
3,620.0) (
4,200.0) (
Advertising
(
- ) (
- ) (
10.0) (
10.0) (
- ) (
- ) (
10.0) (
- ) (
10.0) (
- ) (
10.0) (
10.0) (
60.0)
Returns, Refunds, Discounts
(
(1,256.0) (
(1,349.0) (
(1,094.0) (
(1,566.0) (
(1,141.0) (
(1,229.0) (
(1,257.0) (
(1,295.0) (
(1,273.0) (
(1,278.0) (
(1,232.0) (
(1,845.0) (
(15,815.0)
Total Net Revenue
(
2,434.0) (
2,301.0) (
2,056.0) (
2,372.0) (
2,229.0) (
2,381.0) (
2,443.0) (
2,505.0) (
2,447.0) (
2,472.0) (
2,398.0) (
2,365.0) (
28,403.0)
Cost of Goods Sold Gross Profit (20% commission fee+ advertising)
(
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- )
(
467.0) (
440.0) (
399.0) (
460.0) (
426.0) (
456.2) (
465.0) (
481.0) (
465.0) (
474.0) (
456.0) (
422.0) (
5,411.2)
Advertising & B2B Communication
(
220.0) (
147.0) (
54.0) (
145.0) (
20.0) (
89.0) (
64.0) (
40.0) (
163.0) (
109.0) (
20.0) (
152.0) (
1,223.0)
Insurance
(
0.2) (
0.2) (
0.2) (
0.2) (
0.2) (
0.2) (
0.2) (
0.2) (
0.2) (
0.2) (
0.2) (
0.2) (
2.4)
IT Maintenance
(
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
3.0) (
36.0)
App Store
(
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
0.1) (
0.1)
Office Supplies
(
5.0) (
5.0) (
5.0) (
5.0) (
5.0) (
5.0) (
5.0) (
5.0) (
5.0) (
5.0) (
5.0) (
5.0) (
60.0)
Rent
(
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
7.0) (
84.0)
Salaries, Benefits & Wages
(
48.0) (
48.0) (
42.0) (
42.0) (
42.0) (
42.0) (
42.0) (
42.0) (
42.0) (
48.0) (
48.0) (
48.0) (
534.0)
Benefit (30% of salaries)
(
13.0) (
13.0) (
13.0) (
13.0) (
13.0) (
13.0) (
13.0) (
13.0) (
13.0) (
13.0) (
13.0) (
13.0) (
156.0)
Utilities
(
0.6) (
0.6) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
0.5) (
6.2)
Business Travel
(
2.0) (
- ) (
- ) (
- ) (
- ) (
2.0) (
2.0) (
- ) (
- ) (
2.0) (
- ) (
2.0) (
10.0)
Entertainment
(
Accounting Fee
(
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
- ) (
1.0) (
1.0)
Total Expenses
(
299.5) (
224.5) (
125.4) (
216.4) (
91.4) (
162.4) (
137.4) (
111.4) (
234.4) (
188.4) (
97.4) (
232.5) (
2,121.1)
Earnings Before Taxes
(
167.5) (
215.5) (
273.6) (
243.6) (
334.6) (
293.8) (
327.6) (
369.6) (
230.6) (
285.6) (
358.6) (
189.5) (
3,290.1)
Income Taxes (20%)
(
33.4) (
43.0) (
55.0) (
49.0) (
67.0) (
59.0) (
66.0) (
74.0) (
46.0) (
57.0) (
72.0) (
38.0) (
659.4)
Net Earnings
(
134.1) (
172.5) (
218.6) (
194.6) (
267.6) (
234.8) (
261.6) (
295.6) (
184.6) (
228.6) (
286.6) (
151.5) (
2,630.7)
43,810.0)
Expenses
0.7) (
0.7) (
0.7) (
0.7) (
0.7) (
0.7) (
0.7) (
0.7) (
0.7) (
0.7) (
0.7) (
0.7) (
Year Three Marketing Budget CHANNEL MARKETING BUDGET Marketing Activities(£,000)
2021
Brand Expansion Related Activities
Easter Promotion
Uni Collaboration
Pop-UP Warm Up
Online
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
App Filter
5
0
5
5
0
5
5
0
5
5
0
5
40
40
E-Mail Newsletter
0
20
0
20
0
10
10
0
20
10
0
20
110
110
Online Community Improvement
0
5
0
5
0
0
0
0
5
0
0
5
20
20
Celebrity Collaboration
Christmas Promotion Total
Channel Cost Facebook
40
30
20
20
20
15
15
25
40
30
0
25
280
280
40
30
0
10
0
10
0
15
20
20
0
25
170
170
Youtube
25
30
0
20
0
30
20
0
20
0
20
25
190
190
110
Advertising Cost Online
30
0
0
20
0
0
0
0
25
20
0
15
110
20
0
0
10
0
10
0
0
10
20
0
10
80
80
Celebrity collaboration
25
25
25
25
0
0
0
0
0
0
0
0
100
100
Influencers
4
4
4
0
0
0
4
0
4
4
0
4
28
28
25
0
0
10
0
0
10
0
10
0
0
10
65
65
0
0
0
0
0
0
0
0
0
5
5
5
15
15
Market Research and strategic planning
0.5
0.5
0
0.5
0
0.5
0
0
0.5
0
0
0.5
3
3
Press Release
0.3
0.3
0
0
0
0.3
0
0
0
0
0
0.3
1.2
1.2
Outdoor Preliminary Work For Pop-Up Store
B2B Communication
Event, Exhibition
0
2
0
0
0
2
0
0
0
0
0
2
3
3
Video and creative image
5
0
0
0
0
5
0
0
0
0
0
5
15
15
Total:
0
0
0
0
0
0
0
0
4
0
0
0
4
4
219.8
146.8
54
145.5
20
87.8
64
40
163.5
114
25
156.8
1237.2
1237.2
Online App Filter E-Mail Newsletter Online Community Improvement
40 110 20
Channel Cost
132
280
170
Youtube
190
Advertising Cost
8.4)
Three Year Profit and Loss Muse Profit and Loss (P&L) Statement [GBP £000] ( ( ( ( (
2022 42,250.0) 1,560.0) 60.0) 15,815.0) 27,085.0)
- ) (
- ) (
- )
(
3,212.0) (
4,954.0) (
5,411.2)
( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (
160.0) 871.0) 1.2) 154.0) 0.1) 23.1) 68.0) 478.6) 143.7) 5.2) 6.0) 7.5) 1.0) 1.0) 1,920.4) 1,291.6)
- ) 975.2) 1.2) 36.0) 0.1) 44.0) 84.0) 516.0) 158.0) 6.2) 6.0) 6.0) - ) 1.0) 1,833.7) 3,120.3)
( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (
- ) 1,223.0) 2.4) 36.0) 0.1) 60.0) 84.0) 534.0) 156.0) 6.2) 10.0) 8.4) - ) 1.0) 2,121.1) 3,290.1)
0 1,291.6) ( 315 915.3 (
642 2,478.3) ( 495.66 1,982.6) (
0 3,290.1) 658.02 2,632.1)
23160 15901 3857.8 1549.9 15440 10883 2854.2 747.2
44784 30640 7352 3901 29856 20936 3963 3170
Online Sale Premium Membership Advertising Returns, Refunds, Discounts Total Net Revenue
( ( ( ( (
Cost of Goods Sold Gross Profit (20% commission fee+ advertising)
(
Expenses App Building and Technical Improvement Advertising & B2B Communication Insurance IT Maintenance App Store Office Supplies Rent Salaries, Benefits & Wages Benefit (30% of salaries) Utilities Business Travel Entertainment Trademark and Business Registertation Accounting Fee Total Expenses Earnings Before Intersts and Taxes Interest Expense Earnings Before Taxes Income Taxes (20%) Net Earnings
2020 19,300.0) 827.0) 20.0) 7,510.0) 12,637.0)
(
Sensitivity Analysis +20% (constant commission fee) Net Revenue Gross Profit Net Earning Sensitivity Analysis -20% Net Revenue Gross Profit Net Earning
2021 37,320.0) 1,440.0) 90.0) 13,064.0) 25,913.0)
( ( ( ( (
( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (
50700 32502 6493.2 3948 33800 21668 4328.8 2105.6
First Year Human Resources Human Resource Position
Number of Total Employee Salary/ s pm (£0)
Project Manager
1
4000
40,000
Marketing Manager
1
3800
38,000 30,000
Work Duration Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Total Salary
UI Design (Full time)
1
2500
UI Design (Part time)
1
4000
IOS Development team
2
10,000
30,000 48,000
8,000
IT Maintenance
1
4000
Test Engineer
1
4300
8,600
Stylist
3
7500
60,000
Customer Service
3
5400
43,200
Marketing Team (Full time)
2
4400
52,800
Marketing Team(Part time)
1
1800
Accountant
2
10000
Total: (Unit, 000)
3,600 120,000 34.9
34.9
39
33
43
43
42
42
42
42
42
42
480
133
Online Survey Total Respondants: 132
134
Online Survey
135
Focus Group Focus Group Participant: Amanda 1: When did you first know about virtual fitting? Actually from the fashion game website. 2: Have you ever tried that service ever? Not yet, but I saw it in some shopping mall in Sydney
Amanda’s outfit matching
3: Do you think you are an expert of online shopping or do you often return things? Well, I think so. I enjoying exploring new things on fashion website. 4: Check your phone and how much charge you spent on social media? More than 56% 5: Check your online shopping app, how much stuff you bought last month? Well I bought more than 20 products online because I plan to have a holiday in this month, so that was a lot. 6: Do you think the Muse’s brand concept is interested you? If not, why? Yes of course, as I mentioned I know this kind of technology from my childhood and that gave me a very deep impression. If I can know the brand and price and actually buy them that would be really interesting. 7: Do you want to know the brand and the product price from this activity? Oh yes, I like this dress so much. Focus Group Participant: Liu
Liu’s outfit matching
1: When did you first know about virtual fitting? Maybe 5 or 6 years ago and I was in my high school, I saw this kind of mirror when I do shopping with my besties. 2: Have you ever tried that service ever? Not yet. 3: Do you think you are an expert of online shopping or do you often return things? Yes and no, I love shopping online and actually sometimes I bought something that is not fit on me but I am rarely returning things. 4: Check your phone and how much charge you spent on social media? Around 53% 5: Check your online shopping app, how much item you bought last month? More than 10 I think 6: Do you think the Muse’s brand concept is interested you? If not, why? Probably, depend on the brand and product range. 7: Do you want to know the brand and product price from this activity? Yes, if possible, I think the t-shirt is nice to match one of my trainers.
136
Focus Group Participant: Lisa 1: When did you first know about virtual fitting? Maybe in 2016 2: Have you ever tried that service ever? Yes, I tried it on an mobile app and it was about a new range of lipsticks. I found one of them were really nice and I bought it a few days later.
Lisa’s outfit matching
3: Do you think you are an expert of online shopping or do you often return things? Yes of course, actually 80% of items around me came from online and I rarely return them because they were all fit on me. 4: Check your phone and how much time you spent on social media? Over 70% 5: Check your online shopping app, how much stuff you bought last month? Nothing, because I was preparing my final exam, but I bought a lot last month because it was my birthday. 6: Do you think the Muse’s brand concept is interested you? If not, why? Yes it attract me. It looks like very convenient and save my time on trying products. 7: Do you want to know the brand and product price from this activity? Haha yes, I got more inspiration from matching them together and some one them did not look that pretty, but you look, when I match the top to the skirt, they look brilliant. Focus Group Participant: Maggie 1: When did you first know about virtual fitting? I can’t remember but I am sure I saw it somewhere in the city centre.
Maggie’s outfit matching
2: Have you ever tried that service ever? Not quite. 3: Do you think you are an expert of online shopping or do you often return things? No, I sometimes bought something ridiculous when I actually receive them. But I don’t really return them because the process sometimes is not that convenient. I always want to sell them to others who want them or use them more efficiency. 4: Check your phone and how much time you spent on social media? Not a lot, around 35%. 5: Check your online shopping app, how much stuff you bought last month? Three. 6: Do you think the Muse’s brand concept is interested you? If not, why? Yes, and I want to join in the online community actually, I think I could find more fashion professionals or cool style there. And I can have some advice when I do online shopping as well. 7: Do you want to know the brand and product price from this activity? Sure. It is so easy to match them and actually I think it was motivating me to make more opportunity on them.
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Focus Group Participant: Stephnie
Stephnie’s outfit matching
1: When did you first know about virtual fitting? Just these few years. 2: Have you ever tried that service ever? Yes, I thought it was Uniqlo, I can’t remeber it clearly. 3: Do you think you are an expert of online shopping or do you often return things? Sometimes, I always look for other people’s advice and some fashion news to see what is the current trend first, so the product I bought mainly came from other people’s advice. But yes, I often return some product that have a bad quality or wrong size. 4: Check your phone and how much time you spent on social media? 55% 5: Check your online shopping app, how much stuff you bought last month? Five I think, because the summer is coming and I really need something new. 6: Do you think the Muse’s brand concept is interested you? If not, why? Yes maybe, but I could feel nervous to show off my fitting picture to the community.
7:Do you want to know the brand and product price from this activity? Yes, it was really good for relaxing, but you can also find something you like from it. Focus Group Participant: Iris
Iris’s outfit matching
1: When did you first know about virtual fitting? Maybe two or three years ago. 2: Have you ever tried that service ever? I think no. 3: Do you think you are an expert of online shopping or do you often return things? No, I don’t think so. I always feel more confused when I do online shopping because you can browse so many product types there, and when I like one of them, let’s say one trousers, and you would feel you need one top to match it, so I always waste my time on it and buy nothing at last. I do not really buy the product online. 4: Check your phone and how much time you spent on social media? 46% in total 5: Check your online shopping app, how much stuff you bought last month? Nothing. 6: Do you think the Muse’s brand concept is interested you? If not, why? Definitely yes, because I really need more inspiration and advice from others to help me out, and the app could help me match things together easier.
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7:Do you want to know the brand and product price from this activity? Yes, some of them.
Focus Group Participant: Carol 1: When did you first know about virtual fitting? Just on the internet but I have not see any in my city yet.
Carol’s outfit matching
2: Have you ever tried that service ever? No 3: Do you think you are an expert of online shopping or do you often return things? Well, in some way, depends on what type of good I want to buy. I am good at buying accessories but not apparel. Because I often think they are not fit on me and some of them are made with bad texture so I always return things, I think that waste my money and time actually. 4: Check your phone and how much time you spent on social media? 65% in total 5: Check your online shopping app, how much stuff you bought last month? Just two 6: Do you think the Muse’s brand concept is interested you? If not, why? Well, maybe. I want to get more inspiration from others but I’m not sure whether the virtual fitting work on me, because I can’t touch the texture. 7:Do you want to know the brand and product price from this activity? Yes, it is really good to match them before I buy.
Eugenia’s outfit matching
Focus Group Participant: Eugenia 1: When did you first know about virtual fitting? Last year I think. 2: Have you ever tried that service ever? Not yet, I haven’t see any in Nottingham. 3: Do you think you are an expert of online shopping or do you often return things? Yes, I know my personal style very well so I know which brand is suitable for me and I would say I am a loyal customers because I don’t often return things from my favourite brand, I always want to see their potential to match other clothing. 4: Check your phone and how much time you spent on social media? 43% 5: Check your online shopping app, how much stuff you bought last month? Three 6: Do you think the Muse’s brand concept is interested you? If not, why? It depends. As I said, I have some primary choices on several brands so if the app contains them, I would like to try. 7:Do you want to know the brand and product price from this activity? 139 Not quite, they are not my type.
Focus Group Participant: Rosie 1: When did you first know about virtual fitting? Two years ago maybe 2: Have you ever tried that service ever? Yes, I really like them because you know, when I have my makeup on, it is not a easy task to try on clothing.
Rosie’s outfit matching
3: Do you think you are an expert of online shopping or do you often return things? Yes, because I like reviewing other people’s feedback first and find the best on for myself to avoid returning stuff. 4: Check your phone and how much time you spent on social media? 62% 5: Check your online shopping app, how much stuff you bought last month? Five. 6: Do you think the Muse’s brand concept is interested you? If not, why? If you show a wider range of brands I would say yes, because it is really important to show as many style as possible to me, I really like to see something new. 7:Do you want to know the brand and product price from this activity? Yes, I would say it is because I can saw the actual image of how they would look like if they match together. Focus Group Participant: Lucy
Lucy’s outfit matching
1: When did you first know about virtual fitting? About last few years 2: Have you ever tried that service ever? No, but I saw its introduction on advertising and it is attractive. 3: Do you think you are an expert of online shopping or do you often return things? Well, not really. I am kind of compulsive customer and I rely on the product image a lot, I don’t really take the review on other’s or see the product detail. So I actually return things very frequently. 4: Check your phone and how much time you spent on social media? 46% 5: Check your online shopping app, how much stuff you bought last month? That was 8 6: Do you think the Muse’s brand concept is interested you? If not, why? Maybe yes, because I could do more matching things before I buy and receive other’s advice at the same time, so that would made the shopping journey more efficiency.
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7:Do you want to know the brand and product price from this activity? Yes, because it is better than the traditional discovering app that only show the product image to you, you can actually match them by your own idea on this kind of app.
Focus Group Consent Form
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Brand Interview Brand: Whistle 1: Do you think the try on experience is essential for consumers? Yeah, I mean it gives the sense of quality and the sense of how that feels. For me, the in-store experience inspires me to buy clothes, and you can experience more behind the brands like the people works there. 2: Which factor you think is the key one to influence the online returning rate? It depends on individuals, but sometimes it downs to the designers behind the brands. So it is more like personal experience when they come in. 3: Do you think to try on service would upgrade the online shopping experience? Depending on a few things. You come into the store, and you get communication between the staff here and especially for high-street brands, you get in touch with much interaction between two people. So actually losing out quite a lot the expect of going out the adventure of finding. So I am not into that kind of online shopping. ( If I add stylist advice on the online shopping, is that work for you?) For me I want like, shoes, for example, I can’t get them online, because 90% of the time I am going to send them back because they are not fit on me, and obviously for most of the people. For me, I am a social guy; I would like to go out and talk around the people. Go online is too easy, but it loses that kind of communication between the people over here and the service and you can touch the material. 4: What is your brand’s opinion on trying new technology? Well, I see the idea behind it is for a quicker environment, and create a faster service for people, so it depends on what the brand you are. 5: If Muse wants to collaborate with your brands, do you think it is necessary? If not, why? It will be interesting to play around it to see what can get out of it; I think it can give a good sense of feeling especially for people who live in a busy lifestyle, they can have a see on what it would look like on buying a different kind of styles together on them. ( Do you think it will benefit your brand?) Well most of our clients are the people on business side and if they are busy women maybe they would find its hard to come in-store and take a look, visit the app could build a connection to let them go instore, they can then try on the few things potentially, it depends on what they want. It is possible could work, and need good marketing as well, depends on what the style, like clothes to clothes, and the price you gonna pay for each one, depends on the background they come from; there is a lot to it. If you go Primark, you can try on the cloths quickly, but for the higherend brand, the staff in-store is valuable, you may lose some real talk to people, like the shopping environment when you move to online. Or the app gonna be more design around, using the external in-store so when you come in, so obviously for us, we need to know the merchandise we are selling, so you can pick it up and like have a QR code and can you do that for me. So it very depends on where you are gonna go there.
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Brand Interview Brand: Jigsaw 1: Do you think the try on experience is important for consumers? It depends, the new generation not mind, they rather buy online and try at home, and they can return them, but the older generation customer, they prefer to come in, and feel the fabric, and try on. They are not that good with technology, so it depends on what generation. 2: Which factor you think is the key one to influence the online returning rate? Pretty much about size, because the different style has different size, fabric, sometimes it should be size 8 or 10, it depends. So what are customers tend to do, they order the two sizes, 8 and 10, and return one. (Do you do free shipping online?) If you paid more than £100, but in term of return, it would be free anyway. 3: Do you think to try on service would upgrade the online shopping experience? Not always, because our website uses the proper model who is very skinny, but we are not all like that. But your app would be beneficial because you have the personal sizing process and build your model, you gave the details because you can see how big is your bust and see how the fabric would work on you. 4: What is your brand’s opinion on trying new technology? We tend to; we are tying, we might be a bit behind. 5: If Muse wants to collaborate with your brands, do you think it is necessary? If not, why? Yeah, of course, that might open the new market to Jigsaw, and if you go on the Jigsaw website, you could find more details about what we are collaborating with, but I like your idea, and I think Jigsaw would love it too.
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Brand Interview Brand: French Connection 1: Do you think the try on experience is essential for consumers? Yeah, we have guys there entirely on this, so and obviously, people have a different shape and different body types so it is crucial and the whole shopping experience as well. 2: Which factor you think is the key one to influence the online returning rate? Just no suitable, sometimes they don’t like the item and not about material or size or any factor like that, and sometimes it just not fit them when they try them on. 3: Do you think to try on service would upgrade the online shopping experience? Probably the younger, but not the older. I would say younger people. 4: What is your brand’s opinion on trying new technology? We have, recently in store, the iPad, a lot of companies use that, so it is easier for customers to check to see the stock, or something they particular want and we can get it in there on the iPad. 5: If Muse wants to collaborate with your brands, do you think it is necessary? If not, why? Yes and No, obviously, marketing is essential, everybody is individual preferences, but I would say it could work on our younger customers. Brand: Karen Millen 1: Do you think the try on experience is important for consumers? Yes of course, that is why they come to our store 2: Which factor you think is the key one to influence the online returning rate? Sometimes because the outfit is not that good, and sometimes they found some similar products online but with a cheaper price. 3: Do you think try on service would upgrade the online shopping experience? Well I think it will work better on younger generation, because they are more willing to try something new and have exploration online. 4: What is your brand’s opinion on trying new technology? Yeah, we have had the tablets in store and our own shopping app. 5: If Muse want to collaborate with your brands, do you think it is necessary? If not, why? It could be, because everyone have different types of body and the virtual fitting could be an opportunities for the online shopping site.
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Brand Interview Brand: All Saints 1: Do you think the try on experience is important for consumers? Yes, I think the key reason for people to come in-store is because they want to try the clothes on, rather than people who shop at home. 2: Which factor you think is the key one to influence the online returning rate? So, our online return policy is a little bit different to some other brands, but I think the returning process is more convenience now and they have fewer scruple when they shopping. 3: Do you think try on service would upgrade the online shopping experience? Yes, I think it is very important for people. So back to the first question, people try on clothes because they feel it would be different with the website image, cause everyone is different, so have some sort of visual fitting service would definitely help. 4: What is your brand’s opinion on trying new technology? Not specifically like that, although we are not very technological brand so. 5: If Muse want to collaborate with your brands, do you think it is necessary? If not, why? Well I could not speak on behalf of the brand, but the brand is always looking to have a gretter experience with customers, and start using technology to do that. And I think this mobile app would give more incentive for customers to come in store.
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Brand Interview Sandro, online interview
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MUSE
Shopping with fun, Try it on your own !
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