1
Rag & Bone / JEAN Six Month Buying Plan
2
By Natalie James Kendria Jones Paula Salazar
CONTENTS The Brand Stores Customers A Lifestyle Brand Strengths & Strategies
10 13 18 20
The Market Competitors Positive Trends Negitive Trends
24 29 35
The Six Month Buying Plan Melrose Store Soho Store Assortment Plan
44 46 48
3
Rag and Bone: A man who collects unwanted items “The name comes from a very old English tradesman called a rag and bone man who used to come round on a horse and cart shouting “rag and bone.” He collected old bone for candles originally, then anything he could recycle, iron railings, that kind of thing. We have a lot of pictures of them and they’re always wearing a very disheveled handmade suit and a coat. It defines our aesthetic in terms of the mix of tailoring and workwear that we put into the clothes.” -Marcus Wainwright
4
The Brand
5
The Designers Marcus Wainwright & David Neville
6
The Brand Founded in 2002 by Marcus Wainwright and David Neville Created the brand because they couldn’t find a decent pair of jeans
7
Core Mission Rag and Bone has cool, but accessible clothing, blending American workwear and British tailoring with the unfussy look of downtown New York. Balancing between desirability and accessibility, offering items at both high and low price points. Our secret to our success is by balancing art and commerce. There’s a little bit of everything for everyone.
8
Brand Identity Authentic Cool Vintage Worn Quality
9
The Store
10
Locations 12 stores in the United States 6 in New York 1 in Dallas, Greenwich, Aspen, Boston, and D.C. 3 in Los Angeles Stores in London and Tokyo
11
12
The Customers
13
Customer The New York Girl, especially the downtown New York girl. Both Woman and Men Ranges from the young city dweller defining his or her own style, to a more mature customer with an eye for updated classics. Rag & Bone demonstrates the right appeal for the young, yet sophisticated and edgy type of men and women who enjoy high quality denim wear as well as an array of other clothing and accessories. Wide range target market. 14
Women’s RTW Profile Name: Cara Age: 30 Occupation: Visual Merchandiser Annual Income: $45,000 Education: College Degree Residence: Soho, New York Leisure Activities: Gallery Openings Attend Concerts Going to Restaurant Openings
15
Men’s RTW Profile Name: Mack Age: 26 Occupation: Photographer Annual Income: $30,000 Education: College Degree Residence: Brooklyn Leisure Activities: Taking his Dog on Long Walks Relax at the Local Brewery Attend Photo Expositions
16
Accessories Profile Name: Alex Age: 19 Occupation: Student Annual Income: Supplement from Parents Education: In College Residence: Dorm Leisure Activities: Go shopping with friends Attend social events Work on her Blog
17
A Lifestyle Brand
18
A Lifestyle Brand “Ultimately, we want Rag & Bone to be a fully fledged lifestyle brand.” - David Neville The Rag & Bone blog covers more than what is happing at Rag & Bone. It’s table of contents includes: Inside Rag & Bone Art & Culture Stuff We Love Features Travel
19
Strengths & Strategies
20
Strengths Understanding the New York customer Tailoring Perfecting quality and style before moving on to new departments Knowing that they have to sell in department stores to get the brand recognition from the public. “If you can’t do business in Barneys, Bergdorf’s and Saks, you may as well pack up your business and go home,” said Neville. 21
Strengths Relying on wholesaling. “We grew up as a wholesaler. We had to be. We didn’t have any money. We’re still very skewed as a wholesale business. The ability to scale the business here in America with U.S. retailers is actually significant,” Today, Rag & Bone’s business is 70 percent wholesale, and 30 percent retail.
22
Strategies Maintain a good relationship with key buyers. ADVERTISING: guerilla advertising campaign which involves plastering thousands of posters all over lower Manhattan in a “Dan Smith Will Teach You Guitar� fashion. The ads consist of personal photographs of models Abbey Lee Kershaw, Edita Vilkeviciute, Sasha Pivovarova, and Lily Aldridge wearing Rag & Bone. Try and be part of their customers lifestyle. 23
The Market
24
Product Line Categories Denim T-shirts Sweaters
25
Our Focus Rag & Bone/ JEAN Denim
26
The Competiors
27
Acne Studios Emphasis on tailoring Interest in photography, art, architecture and contemporary culture Understands the urban and street culture
28
7 for All Mankind The Califorina lifestyle, effortless and sexy sofistication Changed the game for premium denim
29
Positive Trends
30
The Right Track New and innovated look for jeans
31
Leather
Creates diversity It will attract more customers Good change to regular denim Won’t be leaving the scene anytime soon
32
Midnight Blues and Blacks
33
Demin Trends Raw/ Relaxed Torn Boyfriend
34
Prints Which prints fit with brand asethic?
35
Negative Trends
36
Active Wear It is growing and becoming huge Comfortable Integrated into daily attire Becoming “The new Denim� It will become the next big growth category
37
Comfort Clothing
38
Technology Future New innovations. Higher expectancies. Higher prices.
39
The Six Month Buying Plan
40
6 Month Buying Plan Fall 2015 Rag & Bone Focus Product Category: Denim
Fall 2015 Plan Net Sales, Fall 2015
5,000.0
Est. Net Sales, Fall 2014
4,500.0
Plan % Last Year
11.11%
Average Stock, Retail
2777.1
Inventory Turnover
1.80
Planned Reductions, $
750.0
Reductions % Sales
15.00%
Plan IMU %
58.00%
41
(000’s)
42
Fall 2015 6 Month Buying Plan August
September
October
November
December
January
Fall 2015
Net Sales
700.0
900.0
800.0
900.0
1100.0
600.0
5,000.0
% Fall
14.00%
18.00%
16.00%
18.00%
22.00%
12.00%
100.00%
Plan BOM Stock
2590.0
2970.0
2800.0
2970.0
3190.0
2520.0
2777.1
Stock / Sales Ratio
3.7
3.3
3.5
3.3
2.9
4.2
Plan EOM Stock
2970.0
2800.0
2970.0
3190.0
2520.0
2400.0
Plan Reductions
90.0
112.5
112.5
150.0
172.5
112.5
750.0
% Fall
12.00%
15.00%
15.00%
20.00%
23.00%
15.00%
100.00%
Purchases, Retail
1170.0
842.5
1082.0
1270.0
602.5
592.5
5560.0
Purchases, Cost
491.4
353.85
454.65
533.4
253.05
248.85
2335.2
Melrose Store
43
6 Month Buying Plan Fall 2015 Rag & Bone Focus Product Category: Denim
Fall 2015
44
Plan Net Sales, Fall 2015
600.0
Est. Net Sales, Fall 2014
540.0
Plan % Last Year
11.11%
Average Stock, Retail
293.8
Inventory Turnover
2.04
Planned Reductions, $
90.0
Reductions % Sales
15.00%
Plan IMU %
58.00%
(000’s)
Fall 2015 6 Month Buying Plan August
September
October
November
December
January
Fall 2015
Net Sales
84.0
108.0
96.0
108.0
132.0
72.0
600.0
% Fall
14.00%
18.00%
16.00%
18.00%
22.00%
12.00%
100.00%
Plan BOM Stock
277.2
302.4
297.6
313.3
330.0
266.4
293.8
Stock / Sales Ratio
3.3
2.8
3.1
2.9
2.5
3.7
Plan EOM Stock
302.4
297.6
313.2
330.0
266.4
270.0
Plan Reductions
10.8
13.5
18.0
20.7
20.7
13.5
90.0
% Fall
12.00%
15.00%
15.00%
20.00%
23.00%
15.00%
100.00%
Purchases, Retail
120.0
116.7
125.1
142.8
89.1
89.1
682.8
Purchases, Cost
50.4
49.0
52.2
60.0
37.4
37.4
286.8
45
Soho Store
46
6 Month Buying Plan Fall 2015 Rag & Bone Focus Product Category: Denim
Fall 2015 Plan Net Sales, Fall 2015
800.0
Est. Net Sales, Fall 2014
720.0
Plan % Last Year
11.11%
Average Stock, Retail
385.6
Inventory Turnover
2.07
Planned Reductions, $
120.0
Reductions % Sales
15.00%
Plan IMU %
58.00% 47
(000’s)
48
Fall 2015 6 Month Buying Plan August
September
October
November
December
January
Fall 2015
Net Sales
112.0
144.0
128.0
144.0
176.0
96.0
800.0
% Fall
14.00%
18.00%
16.00%
18.00%
22.00%
12.00%
100.00%
Plan BOM Stock
358.4
403.2
384.0
403.2
440.0
355.3
385.6
Stock / Sales Ratio
3.3
2.8
3.1
2.9
2.5
3.7
Plan EOM Stock
403.2
384.0
403.2
440.0
355.2
355.0
Plan Reductions
14.4
18.0
18.0
24.0
27.6
18.0
120.0
% Fall
12.00%
15.00%
15.00%
20.00%
23.00%
15.00%
100.00%
Purchases, Retail
171.2
142.8
165.2
204.8
118.8
113.8
916.6
Purchases, Cost
71.9
60.0
69.4
86.0
49.9
47.8
385.0
Assortment Plan
49
Assortment Plan Fall 2015 Rag & Bone Focus Product Category: Denim Planned Purchases, Retail: $5,000,000 Average Retail Price: $234
50
Size
Total
Purchases
Washes
Total
23
5.00%
$250,000
Black
30.00%
24
7.00%
$350,000
Color
15.00%
25
10.00%
$500,000
Dark
30.00%
26
13.00%
$650,000
Light
25.00%
27
15.00%
$750,000
28
15.00%
$750,000
29
13.00%
$650,000
30
10.00%
$500,000
31
7.00%
$350,000
32
5.00%
$250,000
100.00%
$5,000,000
100.00%
Classification
Total
Purchases
Jeans
70.00%
$3,500,000
Shorts
8.00%
$400,000
Skirts
10.00%
$500,000
Jackets
12.00%
$600,000
100.00%
$5,000,000
Statement of Risk We are confident in our plan for an 11.11% increase in our buying plan, because the industry trends in our market category has enough newness to drive interest from our customers. We understand that this past season’s weather impacted a few of our stores, but overall we are confident that our business will stay strong thorugh the winter months
51
52
Retail Buying Simulation Winter 2015