Calvin by MyCo Innovate

MyCo. Feel. Experience. Comfort.

MyCo. Feel. Experience. Comfort.

Our collaborative idea is to bring you a product that is satisfying for your everyday needs. The brand reflects a sense of comfort and timeless products that focus on fine fabrics, great craftsmanship, and fit. Individuality is key to our daily lives and we have implemented this in our creative process design. The MyCo. mission is to create high quality garments and support the manufacturing in Britain.

Executive Summary Feel. Experience. Comfort.

MyCo. is a unique brand based in Manchester (United Kingdom) that strives to innovate and satisfy modern individuals that leads more than one lifestyle. This portfolio will suggest one of the best possible manner in which MyCo. can succeed and be sustainable in addition to the aid of external resources. It will highlight the market and its potential to business operations and a breakdown of the cost of operating the day to day activities that makes this business a success.

The Concept

This is the conceptual piece which highlights the creativity and flexibility of the coat through innovative inspired designs. The narrative of the coat is based around Manchesterâ&#x20AC;&#x2122;s Industrialisation.

Business Canvas Model Key Partners

Key Activities

Value Proposition

Customer Relationship

Customer Segments

Suppliers

Problem Solving/ Innovating

Durability

Co-Creation

25-34

Stockists

Customisable Pocket (tube card)

Experience

Men

MMU

Made in England

Online Community

Brand Collaboration

Transformable

Local Bloggers

Key Resources

Practicality

Channels

Identity

Stockists

IDEO Methods

Online Website

Cost Structure

Revenue Streams

Added Value Driven

List Price (premium pricing)

The Market on Clothing and Accessories

(Mintel, 2014)

Total market of the clothing and accessories market forecasts. While Total Clothing and footwear in England is worth ÂŁ46 Billion as of 2012 according to Fashion United. As of 2014, the market for clothing and accessories according to Mintel has increased by approximately close to ÂŁ53 billion.

The Market on Menswear

(Mintel, 2014)

Even in the worst case scenario, Menswear are growing in the market.

Demographics

Source: GMI/Mintel 2014

Target Market Men are much more likely than women to buy both designer clothing. 29% vs. 14% of adult

40 Men

Women

0 Designer

60 40 Men

20 0

Women

Men are still much more likely to buy upmarket high street.

Upmarket High Street

Women on the other hand are much likely to buy in the mid-market.

90 85 80 75 70

Men Women Mid-Market

Base: 1,970 internet users aged 16+ who buy clothes (Mintel, 2010)

Attitudes Towards Designer Clothes Core Benefit Warm Coat

Expected Product Durability Transformable Design Functional

Augmented Product Brand Status Online Community Co-Creation Made in England

Potential Product Pockets that fits Oyster card/contactless payment card (Makes life easier)

Source: Moore, G. A. (2000)

Empathic design: Using IDEOâ&#x20AC;&#x2122;s methodology of empathic design, it allows us to create future potential products.

Marketing/Added Value Customer Experience (online community/blogs/vlogs) Co-Creation

Made in England Highly Customisable Pockets Changeable Hood

Distribution: Product Journey and Product Life Cycle Orders Made by customer online through MyCo.â&#x20AC;&#x2122;s website

Information goes to MyCo.

Information on production goes to manufacturer

Coat is produced

Manufacturer ships back to MyCo.

MyCo. Distributes to customers

Product journey from orders made online to customers. This will reduce retail costs and labour costs. Alternatively, customers can buy the coat from our stockists both online and in retail stores.

Wearing in new coat

This is the process of the product life cycle to remain as sustainable. Cotton can be recycled and in the case that it cannot be further recycled, it can be composted accordingly without contributing to landfill. Not that the will be recycled often because it is very durable and looks better with more use.

Exchange through MyCo. Used coat for vouchers

Recycling

Repair (repair kits)

Reusing

Bought

Exchange

Bored

This is the process for the accessories (lining and hood) which can be exchanged through MyCoâ&#x20AC;&#x2122;s online community forum.

SWOT Analysis Strengths Innovation Co-Creation Sense of Community Quality Low Start up Costs Branding

Opportunities Unique Products Learning from Competitors Establish branding in Manchester

Weaknesses

Not yet established Low Reputation Low Capital

Threats Ideas can be imitated Products can be easily imitated Lack of financial backing

Costing per Coat Here is a general table of the profitability rate in the luxury industry market:

Cost of Sales per coat

Fabric (Ventile)

99.80

Manufacturing

80.00

Silk Lining

23.80

Selling Price

100

Cording

00.60

Cost of Production

Zip Puller

00.24

Gross Profit

Zip

01.44

Ribbings

02.13

Toggles

02.17

Reflective Piping

06.36

Ardmel Ventile Taping

02.80

Interfacing

00.75

Wash Care Label

00.25

Swing Ticket Label

00.24

Size Tabs Label

00.05

Made in England Label

00.60

Branding Label

00.08

Packaging (Jute Tote Bag)

07.90

Total:

229.21

Craig, S. (2014)

Here is a table of MyCo’s pricing in comparison to the industry norms: £

Selling Price

916.84

100

Cost of Production

229.21

Gross Profit

687.63

Average Cost of Competitors’ Coats

£1,295

£580

£595

£815

£810

Burberry

Canada Goose

Belstaff

Mackintosh

Moncler

Average RRP of the top best selling designer urban brands = ( £1,295 + £580 + £595 + £815 + £810 ) ÷ 5 = £819 The proposed coat’s pricing should be as close to £819 as possible.

Profit and Loss Account First Year P&L Statement Profit & Loss Statement

ÂŁ

Sales

27,505.20

Less Cost of Sales

6,876.30

Gross Profit:

20,628.90

Less Overheads Accountancy Charges

200

Rent

495

Operating Profit:

19,933.90

Taxation

1986.78

Net Profit:

17,947.12

Breakeven Chart Detailed Data Table Units Sold 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 17.00 18.00 19.00 20.00 21.00 22.00 23.00 24.00 25.00 26.00 27.00 28.00 29.00 30.00

Sales Revenues £0.00 £916.84 £1,833.68 £2,750.52 £3,667.36 £4,584.20 £5,501.04 £6,417.88 £7,334.72 £8,251.56 £9,168.40 £10,085.24 £11,002.08 £11,918.92 £12,835.76 £13,752.60 £14,669.44 £15,586.28 £16,503.12 £17,419.96 £18,336.80 £19,253.64 £20,170.48 £21,087.32 £22,004.16 £22,921.00 £23,837.84 £24,754.68 £25,671.52 £26,588.36 £27,505.20

Fixed & Variable Costs £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,279.20 £5,508.41 £5,737.62 £5,966.83 £6,196.04 £6,425.25 £6,654.46 £6,838.67 £7,112.88 £7,342.09 £7,571.30

Operating Profit -£5,279.20 -£4,362.36 -£3,445.52 -£2,528.68 -£1,611.84 -£695.00 £221.84 £1,138.68 £2,055.52 £2,972.36 £3,889.20 £4,806.04 £5,722.88 £6,639.72 £7,556.56 £8,673.40 £9,590.24 £10,507.08 £11,223.92 £12,140.76 £13,057.60 £13,745.23 £14,432.86 £15,120.49 £15,808.12 £16,495.75 £17,183.38 £17,916.01 £18,558.64 £19,246.27 £19,933.90

Breakeven Chart Table £ £30,000.00

£25,000.00

£20,000.00

£15,000.00

Units Sold Sales Revenues

£10,000.00

Fixed & Variable Costs Operating Profit

£5,000.00

£1

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

-£5,000.00

-£10,000.00

The fixed costs includes rent, accountancy charges and variables (costs of sales) because it requires a minimum order of 20 coats from the suppliers, which sums up to (£5279.20), Hence the increase in variables after 20 coats.

Source of Funding:

Rewards Pledge£3500 or more:

MA Fashion Innovation 2014/2015 MyCo. Project

0 Backers £0 Pledged of £7000 60 Days to go

This Project will be funded if £7000 is pledged by the specified time.

Pledge £3500 or more and you will receive the one off concept coat that started this project with complimentary silk maps and a hood of your choice. Plus you get to design your own coat with MyCo.’s team for the next season.

Pledge £900 or more: Pledge 900 or more and you will receive a MyCo.(first ever batch with unique serial code) coat with complimentary silk maps of Manchester and a hood of your choice. Pledge £50 or more: Pledge £50 or more and you will receive a MyCo. silk map pocket squares.

Long Term Goals Revenue Goals: Triple the profit by the second year in order to grow the business. Customer Service Goals: Receive a 90%+ positive reviews regarding the products.

Community Outreach Goals: Be as pro-active as possible within the Manchester community and London as the next target market. Website Traffic Goals: Being as active via forums, co-creating and customers exchanging products or communicating with MyCo.â&#x20AC;&#x2122;s team to help gain publicity with the help of other external sources.

Welcome to MyCo.’s new HQ Tangible benefits include: Office Space Meeting Spaces WiFi PCs Broadband Telephone Line Rental Café meeting places

Intangible benefits include:

Opening hours Monday – Thursday 7am - 8.45pm Friday 7am - 6.30pm Saturday 10.30am - 3.30pm

Costs: £495 for first year and £995 for the following year and beyond.

Network of suppliers Mentors Potential Partners Venture Funders Business Strategy Business Planning Marketing Bookkeeping Accounting Human Resources Legal issues University Links

References Barclays (2015) Writing a small business plan. [online] [accessed on January 2015] http://www.barclays.co.uk/Startupsupport/Writingasmallbusinessplan/P124255 9649359

Butler, D. (2001) Business Development. Oxford, UK: Butterworth Heinemann. Canada Goose (2014) Chilliwack Bomber. [online] [accessed on December 2014] http://www.canada-goose.com/chilliwack-bomber-7950M.html

Barrow, C. (2004) Starting a Business for Dummies. Chichester: Wiley & Sons. Belstaff (2014) Union Jack Trialmaster. [online] [accessed on December 2014] http://www.belstaff.co.uk/men/outerwear/jackets-and-coats/union-jacktrialmaster-black/71050169C61A0024-1.html?start=21 Blank, S. and Dorf, B. (2012) The Startup Ownerâ&#x20AC;&#x2122;s Manual. Pescadero, California: K&S Ranch. Bromage (2003) 100 Ways to Make Your Business a Success. Oxford, UK: How to Books. Burberry (2014) Cotton Gabardine Trench Coat. [online] [accessed on December 2014] http://uk.burberry.com/cotton-gabardine-trench-coatp45182801?ds_e_ad_type=pla&gclid=CjwKEAiAoJmlBRCxjKeizPHVs1ESJAC 6cxjURX3NMEM4UexjTimziQw6CKI5Pguvj_XeyDGVRZMe6RoCcKjw_wcB &gclsrc=aw.ds Burns, P. (2011) Entrepreneurship & Small Business. 3rd ed. Basingstoke, UK: Palgrave Macmillan.

Craig, S. (2014) The Basic Structure of a Profit & Loss Account and Industry Norms. Manchester: Manchester Metropolitan University. 4-page hand-out, distributed on December 2014. Denver Post (2015) EBags, co-founder thriving after overcoming setbacks. [online] [accessed on January 2015] http://www.denverpost.com/ci_20659361/ebagsco-founder-thriving-after-overcoming-setbacks End Clothing (2014) Mackintosh Hooded Dunoon Jacket. [online] [accessed on December 2014] http://www.endclothing.co.uk/mackintosh-hooded-dunoonjacket-5875hdid05.html?173=269&gclid=CjwKEAiAw56lBRCs29jB9uOvkygSJADnD36xhXBw51XY9yXFkiUywdVqj2L9itIzF0i1TJMSaxq_xoC333w_wcB Fashion United (2012) Facts and Figures about the Fashion Industry. [online] [accessed on December 2014] http://www.fashionunited.co.uk/facts-and-figures-in-theuk-fashion-industry

References GOV.UK (2015) Corporation Tax. [online] [accessed on January 2015] https://www.gov.uk/corporation-tax

Mintel (2014) Clothing Retailing. [online] [accessed on December 2014] http://academic.mintel.com.ezproxy.mmu.ac.uk/homepages/sector_overview/7 /

Hall, A. (2012) 6 Steps to Insanely Successful Business Goals for 2013. [online] [accessed on January 2015] http://www.forbes.com/sites/alanhall/2012/12/08/6-steps-to-insanelysuccessful-business-goals-for-2013/

Mintel (2014) Menswear. [online] [accessed on December 2014] http://academic.mintel.com.ezproxy.mmu.ac.uk/homepages/sector_overview/7 /

Innospace (2015) Our Services. [online] [accessed on January 2015] http://www.innospace.co.uk/services

Moncler (2014) Moncler Rouillac. [online] [accessed on December 2014] http://store.moncler.com/gb/overcoat_cod41377883pd.html

Kelzo (2015) Kelzo. [online] [accessed on January 2015] http://www.kelzo.com/

Moore, G. A. (2010) Crossing the Chasm. New York, NY: HarperCollins.

Kickstarter (2015) Start a Project [online] [accessed on January 2015] https://www.kickstarter.com/learn?ref=nav

Nudie Jeans (2015) Repair And Take Care of Your Jeans. [online] [accessed on January 2015] http://www.nudiejeans.com/repair/

Strategyzer (2014) The Business Model Canvas. [online] [accessed on December 2014] http://www.businessmodelgeneration.com/canvas/bmc

Osterwalder, A. and Pigneur, Y. (2010) Business Model Generation. Hoboken, New Jersey: John Wiley & Sons.

Traditional Rainwear (2015) Cost pricing of manufacturing by Traditional Rainwear located in Salford. Phone call to Traditional Rainwear Representative. 6th January.

Vistaprint (2015) Tote Bags. [online] [accessed on January 2015]

Mancsy (2015) Mancsy. [online] [accessed January 2015] http://www.mancsy.co.uk/ Mintel (2010) Designer/Upmarket Clothing UK. [online] [accessed on December 2014] http://academic.mintel.com.ezproxy.mmu.ac.uk/display/479885/

Williams, S. (2014) Business Start Up 2014. 27th ed., Edinburgh: Pearson Education Woven Labels (2015) Designer Labels. [online] [accessed on January 2015] http://www.wovenlabelsuk.com/