Apple iAccessories Product Development
Contents
2| Introduction 4| Company History 5| Market Analysis 8| Competitor Analysis 14| SWOT Analysis 15| Product Pverview 17| Target Market 20| Materials 23| Product Information 39| Opportunity Analysis
Apple iAccessories
Integrating Fashion & Technology
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Apple iAccessories
“We believe that we are on the face of the earth to make great products and that’s not changing. We are constantly focusing on innovating. We believe in the simple not the complex. We believe that we need to own and control the primary technologies behind the products that we make, and participate only in markets where we can make a significant contribution. We believe in saying no to thousands of projects, so that we can really focus on the few that are truly important and meaningful to us. We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot. And frankly, we don’t settle for anything less than excellence in every group in the company, and we have the self-honesty to admit when we’re wrong and the courage to change. And I think regardless of who is in what job those values are so embedded in this company that Apple will do extremely well.” Tim Cook, Apple CEO
Apple iAccessories
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Apple Company History Founders Steve Jobs and Steve Wozniak created Apple Computer on April 1, 1976 For more than two decades, Apple Computer was predominantly a manufacturer of personal computers, including the Apple II, Macintosh, and Power Mac lines, but it faced rocky sales and low market share during the 1990s. With the introduction of the successful iPod music player in 2001 and iTunes Music Store in 2003, Apple established itself as a leader in the consumer electronics and media sales industries, leading it to drop “Computer” from the company’s name in 2007. The company is now also known for its iOS range of smart phone, media player, and tablet computer products that began with the iPhone, followed by the iPod Touch and then iPad. As of 2012, Apple is the largest publicly traded corporation in the world by market capitalization, with an estimated value of US$626 billion as of September 2012.
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Apple iAccessories
Market Analysis
Wearable Technology Handbag Industry
Wearable Technology The market of ‘wearable technology’ generated $800 million in revenue in 2013 and worth $6 billion by 2015 There are more than 250 million installed mobile operating systems that can support wearable technology. On average, people spend 127 minutes on their smartphone daily. 97% of 18-29 year olds use smartphones to send text messages. By 2016, 80% of the US population will use mobile phones. 60% of Americans who use wearable tech say it helps them feel more in control of their lives
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Apple iAccessories
The Handbag Market 95% of women from the ages of 18 to 64 own a handbag. Out of this percentage, women carry two handbags a day. 88.5 million women own a handbag. According to a British survey, women enjoy shopping for handbags more than buying shoes, underwear, or accessories. There is a purchase potential of 2.5 billion. A 5-year report on the Handbag, Luggage and Accessory Stores Market shows an annual growth of 2.4% between 2006 and 2011, with over 26.246 businesses and revenues of US $5.0 billion. Women’s handbags and purses account for 47.4% of the market share A comprehensive report released by Global Industry Analysts, Inc. predicts an increase in the US Handbags Industry revenue. By 2015, this market is projected to reach US $9.0 billion.
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Competitor Analysis
Michael Kors LVMH Coach, Inc. Kate Spade Google
Competitor Analysis: Michael Kors Handbag and watch salesaccount for majority of profits. 2013 Net Sales were almost $2.1 billion USD. 59% increase over the third quarter of 2013. During the holiday, while Coach and Kate Spade saw a loss in sales, Michael Kors saw 20% growth in stock. 98 new store openings since the end of the third quarter in 2013. Strong brand recognition, wide variety of price points.
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Competitor Analysis: LVMH World’s largest luxury-goods maker. Louis Vuitton, Fendi, Donna Karan, Loewe, Marc Jacobs, Céline, Kenzo, Givenchy, Thomas Pink, Pucci, Berluti, and Rossimoda are the brands that form the fashion and leather goods business group. LVMH’s fashion and leather goods net sales for 2012 was 9.9 billion euros where the US accounted for 20%. There was 6% growth from 2011. Louis Vuitton and Fendi lead the fashion and leather goods category. LVMH is boosting investment in some of its smaller fashion brands and buying stakes in others to help offset slowing growth at Vuitton. “Despite an uncertain economic environment in Europe, LVMH is wellequipped to continue its growth momentum across all business groups in 2014,” the company said in the statement.
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Apple iAccessories
Competitor Analysis: Coach, Inc. A leading marketer of modern classic American accessories. Women’s handbag collections feature classically inspired designs as well as fashion designs. Typically, there are three to four collections per quarter and four to seven styles per collection. These collections are designed to meet the fashion and functional requirements of our broad and diverse consumer base. Coach’s Net Sales for 2013 totaled slightly above $5 billion. 58% of net sales are from Women’s Handbags. Brand recognition and quality for reasonable prices.
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Competitor Analysis: Kate Spade Formerly Fifth & Pacific. Name changed to focus on the Kate Spade brand, after selling Juicy Couture and Lucky Brand. Kate Spade & Company was born. Vibrant color with classic lines. Less than 20% the size of rival brands (Coach, Michael Kors, etc.) yet maintains healthy growth. 2013 Net Sales reached $1.7 billion USD. The brand went global in 2004. In an effort to reach the millennium customer a third division is being created – Kate Spade Saturday. More casual, affordable fashion merchandise in represented by this brand extension that should appeal to a younger consumer.
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Apple iAccessories
Competitor Analysis: Google Founders Larry Page and Sergey Brin met at Stanford University in 1995. By 1996, they had built a search engine (initially called BackRub) that used links to determine the importance of individual webpages. 2013 total revenue generated was $59.8 billion USD Google is at the forefront of innovation with Google Glass, a wearable computer, mounted on a person’s head as glasses and first tested in April 2012. Google recently bought Nest and acquired their CEO, Tony Fadell who led the team for the iPod and iPad for Apple. Google bought eight robotics companies in 2013. The posibilities are big. Google controls more than 100,000 miles of fiber-optic cables around the world, according to the Wall Street Journal.
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SWOT Analysis Stregnths
Weaknesses
Opportunities
Threats
- Apple has a firm customer loyalty - Leading innovator in mobile device technology - Strong financial performance. - Vigorous marketing and advertising team. - Dedicated customer care - Multichannel outlets
- Product expansion. - Entering a new market. - Dominate the industry. - Current products in high demand - Huge growth opportunity.
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- Price point. - Defects of new products. - [Handbags] only targeting women. - Expectation to produce enough variety to keep consumer engaged. - New to market
- People may not be accepting to new technology. - Rapid changes in technology. - Android growth. - Trend changes - Counterfeit goods.
Apple iAccessories
Product Overview
Target Market Materials Specification Sheets Opportunity Analysis
Apple iAccessories
With Apple’s success in computers, smartphones and other devices, branching out into fashion accessories would bring the customer’s experience full circle. Apple’s Women’s iAccessories includes a large tote bag, a medium corssbody, a backpack, wristlet and wallet that uses a flexible solar panels to charge their phones while on the go. These products are designed with Apple’s working woman in mind, who depends on her devices to get through daily tasks. In addition to the solar panelling, the bags will be made from an eco- friendly vegan leather to maintain Apple’s social responcibility to the environment in minimizing the carbon footprint.
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Apple iAccessories
Target Market
Women
Generation X & Y, mainly ages 25-48 years old Working professionals, always on the go
Lives in urban areas
Extremely tech savvy Open minded to new trends
Perfers Mac over PC. Uses an iPhone
Annual income of $25,000 Disposable income
Active on socal media
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Target Consumer
This is Amanda. She is 25 years old and works for Gap as a visual merchandiser and part time blogger in San Fransisco. Every morning, Amanda runs using her Nike Fuel Band while she trains for a marathon and keeps track of her progress through the app on her iPhone. She tweets “More than half way to my goal for the marathon!” to her twitter followers before she heads off to work, stopping at Starbucks on her way ordering her usual grande non fat, vanilla latte. She arrives to work, goes about her day as normal, has The Plant Cafe Organic for lunch ordering a kale salad, finishes her work day and runs to meet her friends out for dinner. Amanda comes home to her calico cat, Binx, and catches a light night rerun of ‘Friends’ before heading to bed. 18
Apple iAccessories
Target Consumer
Meet Emma, a 41 year old Marketing Director at Bergdorf Goodman. She is married with two kids, living in Manhattan. Her day starts early getting the kids ready for school and dropping them off before getting to work. She stops at Stumptowns Coffee Shop where she takes her coffee black and grabs a blueberry muffin to take back to the office. A day packed with meetings and reports, Emma finally gets a break for a quick lunch from Panera before the meetings start back up again. She runs from work home to make dinner for her husband and children. After dinner, Emma takes her daughter to dance class. She finally gets home by 8 o’clock, get the kids ready for bed and heads to bed to read ‘The Keeper’ by John Lescroart on her iPad before she does this all again in the morning.
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Product Mechanics: Solar Panels
1.0x4.5�
Parameter Operating Voltage Operating Current Wattage Weight Price
Value 3.00 V 25.0mA (0.025A) 0.75 W 0.8 grams $1.90
Source: PowerFilm Solar Cells
The solar panel is a light weight, flexible sheet that is durable to any type of wear. It will be located on the front of the design to be able to receive the most light. The solar panel will be attached to a Lithium battery in an inside pocket of the bag, where the iPhone or device will rest to charge with a USB.
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Apple iAccessories
Product Mechanics: Lithium-ion Polymer Battery
112x57x6mm
Parameter Operating Voltage Operating Current Weight Price
Value 3.7V 4200 mAh 0.1 kg $18.11
The battery will be able to charge the device and recharge through the solar panels on the outside of the bag. This lightweight battery will be hidden on the inside of the bag with the USB wire coming through for use.
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Product Mechanics: GreenHide Ecolife Leather
3586
3353
3351
3349
3596
“Green Hides believes that all leather, as the fabric of nature, should exist in complete harmony with and respect for the earth and its natural eco-systems. Yet EcoLife™, developed specifically by Green Hides, raises that standard. The collection meets ambitious goals for, for example, chrome-free tanning, solvent-free finishing - and even avoids salt treatments and conserves water by using the freshest hides. One of the few truly environmentally friendly leathers in the world, EcoLife also outperforms the competition, meeting the highest technical specifications in fashion-forward, hospitality colors. With EcoLife, true life cycle design lasts a lifetime.”
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Apple iAccessories
Product Information
Tote Crossbody Backpack Wristlet Wallet
Product Information COLLECTION STYLE NO.# CATEGORY
iAccessories 090590 Handbag
Material MAIN FABRIC Leather LINING FABRIC Polyester LABEL Apple
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SEASON SIZE
Fall 2014 One Size
Item Description Exterior: 15”L x 4”Dx 14”H 6” handle drop Zipper Length: 8” Solar panel centered on front Apple logo zipper slider: 1 pc Roll handle
Apple iAccessories
Product Information iAccessories 090590 Handbag
SEASON SIZE
Fall 2014 One Size
5”x 4”
14”
6”
5”
COLLECTION STYLE NO.# CATEGORY
10” 15”
Apple iAccessories
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Cost COLLECTION STYLE NO.# CATEGORY
iAccessories 090590 Handbag
A. Materials Yardage Ecolife Leather .25 Polyester Lining 0.6 B. Components Solar Panel Li- ion Battery Zipper Logo Zip Slider Thread
Amount 3 1 1 1 4.0
C. Labor Cutting Sewing Construction
Yield
D. Others Leather Label Hangtag Tissue Polybag Handbag Box
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Amount 1 1 1 1 1
SEASON SIZE
Fall 2014 One Size
Yield ($/yd) 115 5.99 Total $/unit 1.90 18.11 .15 .06 .00126 Total Cost/Minute
Total (USD$) 28.75 3.59 $32.34 Total (USD$) 5.7 18.11 .15 .06 .00504 $24.03 Total (USD$) .65 1.87 1.00
Total $/unit .70 .020 .00711 .0759 .752 Total
$3.52 Total (USD$) .70 .020 .00711 .0759 .752 $1.56
Freight&Duty
$11.94
Total Cost
$73.39
Apple iAccessories
Product Information COLLECTION STYLE NO.# CATEGORY
iAccessories 062060 Handbag
Material MAIN FABRIC Leather LINING FABRIC Polyester LABEL Apple
SEASON SIZE
Fall 2014 One Size
Item Description Exterior: 7”H x 10.5” W x 2.5”D 6” handle Toggle closure Solar panel on front 40” removable strap
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Product Information COLLECTION STYLE NO.# CATEGORY
iAccessories 062060 Handbag
SEASON SIZE
Fall 2014 One Size
40”
6”
3” 7”
10.5”
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Apple iAccessories
2.5”
Cost COLLECTION STYLE NO.# CATEGORY
iAccessories 062060 Handbag
A. Materials Yardage Ecolife Leather 0.165 Polyester Lining 0.38 B. Components Solar Panel Li- ion Battery Clasp Thread
Amount 3 1 1 4.0
C. Labor Cutting Sewing Construction
Yield
D. Others Leather Label Hangtag Tissue Polybag Handbag Box
Amount 1 1 1 1 1
SEASON SIZE
Fall 2014 One Size
Yield ($/yd) 115 5.99 Total $/unit 1.90 18.11 .15 .00126 Total Cost/Minute
Total (USD$) 18.98 2.27 $21.25 Total (USD$) 5.7 18.11 .15 .00504 $23.96 Total (USD$) .45 1.125 1.00
Total $/unit .70 .020 .00711 .0759 .752 Total
$2.57 Total (USD$) .70 .020 .00711 .0759 .752 $1.56
Freight&Duty
$11.94
Total Cost
$61.28
Apple iAccessories
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Product Information COLLECTION STYLE NO.# CATEGORY
iAccessories 010862 Backpack
Material MAIN FABRIC Leather LINING FABRIC Polyester LABEL Apple
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SEASON SIZE
Fall 2014 One Size
Item Description Exterior: 14.5”H x 12.5”W x 7”D Snap Closures Solar panel on bottom flap Two 30” straps
Apple iAccessories
Product Information COLLECTION STYLE NO.# CATEGORY
iAccessories 010862 Backpack
SEASON SIZE
Fall 2014 One Size
30”
8.5” 14.5”
2.5”
7”
12.5”
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Cost COLLECTION STYLE NO.# CATEGORY
iAccessories 090590 Handbag
A. Materials Yardage Ecolife Leather 0.25 Polyester Lining 0.6
SEASON SIZE
Fall 2014 One Size
Yield ($/yd) 115 5.99 Total $/unit 1.90 18.11 .15 .00126 Total
Total (USD$) 28.75 3.59 $32.34 Total (USD$) 1.90 18.11 .15 .00504 $20.17
B. Components Solar Panel Li- ion Battery Snap Closure Thread
Amount 1 1 1 4.0
C. Labor Cutting Sewing Construction
Yield
Cost/Minute
Total (USD$) .65 1.87 1.00
Amount 1 1 1 1 1
Total $/unit .70 .020 .00711 .0759 .752 Total
$3.52 Total (USD$) .70 .020 .00711 .0759 .752 $1.56
Freight
$11.94
Total Cost
$68.53
D. Others Leather Label Hangtag Tissue Polybag Handbag Box
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Apple iAccessories
Product Information COLLECTION STYLE NO.# CATEGORY
iAccessories 081385 Wristlet
Material MAIN FABRIC Leather LINING FABRIC Polyester LABEL Apple
SEASON SIZE
Fall 2014 One Size
Item Description Exterior: 6”W x 1.2”D x 3.5”H Zipper Length: 6” Two solar panels on the front Apple logo zipper slider: 1 pc Wrist strap: 11”
Apple iAccessories
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Product Information COLLECTION STYLE NO.# CATEGORY
iAccessories 081385 Wristlet
SEASON SIZE
Fall 2014 One Size
11”
3.5”
.75”
34
6”
Apple iAccessories
1.5”
Cost COLLECTION STYLE NO.# CATEGORY
iAccessories 090590 Handbag
A. Materials Yardage Ecolife Leather 0.095 Polyester Lining 0.35 B. Components Solar Panel Li- ion Battery Zipper Logo Zip Slider Thread
Amount 2 1 1 1 4.0
C. Labor Cutting Sewing Construction
Yield
D. Others Leather Label Hangtag Tissue Polybag Handbag Box
Amount 1 1 1 1 1
SEASON SIZE
Fall 2014 One Size
Yield ($/yd) 115 5.99 Total $/unit 1.90 18.11 .15 .06 .00126 Total Cost/Minute
Total (USD$) 10.64 6.34 $16.98 Total (USD$) 3.80 18.11 .15 .06 .00504 $22.13 Total (USD$) .65 1.87 1.00
Total $/unit .70 .020 .00711 .0759 .752 Total
$3.52 Total (USD$) .70 .020 .00711 .0759 .752 $1.56
Freight
$11.94
Total Cost
$56.13
Apple iAccessories
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Product Information COLLECTION STYLE NO.# CATEGORY
iAccessories 021582 Wallet
Material MAIN FABRIC Leather LINING FABRIC Polyester LABEL Apple
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SEASON SIZE
Fall 2014 One Size
Item Description Exterior: 7”W x 3.75”H x 1”D Snap Closure Two solar panels on front of wallet
Apple iAccessories
Product Information COLLECTION STYLE NO.# CATEGORY
iAccessories 021582 Wallet
SEASON SIZE
Fall 2014 One Size
3.75” 1”
7”
Apple iAccessories
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Cost COLLECTION STYLE NO.# CATEGORY
iAccessories 090590 Handbag
A. Materials Yardage Ecolife Leather 0.0925 Polyester Lining 0.35 B. Components Solar Panel Li- ion Battery Zipper Logo Zip Slider Thread
Amount 2 1 1 1 4.0
C. Labor Cutting Sewing Construction
Yield
D. Others Leather Label Hangtag Tissue Polybag Handbag Box
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Amount 1 1 1 1 1
SEASON SIZE
Fall 2014 One Size
Yield ($/yd) 115 5.99 Total $/unit 1.90 18.11 .15 .06 .00126 Total Cost/Minute
Total (USD$) 10.64 6.34 $16.98 Total (USD$) 3.80 18.11 .15 .06 .00504 $22.13 Total (USD$) .65 1.87 1.00
Total $/unit .70 .020 .00711 .0759 .752 Total
$3.52 Total (USD$) .70 .020 .00711 .0759 .752 $1.56
Freight
$11.94
Total Cost
$56.13
Apple iAccessories
Opportunity Analysis Technology has become a crucial part of every day life that it is important to supply consumers with the demand in accessories to enhance the experience with their devices. The iAccessories will allow the consumer to charge their phone on the go, saving them time and use the device more often. By the end of the average workday, consumer’s devices are running low on battery life and the wearable technology will allow them to use the devices with ease. Apple breaking into the fashion industry will open new opportunities, stretching their innovation for a wearable technology market that has barely been touched. The potenital to grow with iAccessories is very high.
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COLLECTION SEASON STYLE NO#
COLLECTION SEASON STYLE NO#
iAccessories Fall 2014 062060
COLLECTION SEASON STYLE NO#
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iAccessories Fall 2014 090590
Apple iAccessories
iAccessories Fall 2014 081385
COLLECTION SEASON STYLE NO#
COLLECTION SEASON STYLE NO#
iAccessories Fall 2014 010862
iAccessories Fall 2014 021582
iAccessories Apple iAccessories
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