The Body Collective Executive Summary

executive summary 2016

Nina Patel - N0515890 FMBR30001 - Executive Summary Word Count - 997

Introduction A prior study was conducted into how emerging technology affect consumers’ buying behaviours and the key finding was the high ‘demand for bespoke products’.

This report was devised to further explore the future of bespoke products, leading to the examination of current sizing issues in the sportswear industry and to create a solution to build women’s confidence.

The Body Collective (TBC) is a new women’s sportswear brand offering affordable, bespoke sports bras and leggings online.

TBC uses ‘3D-A-PORTER’s’ 3D Scanning technology to create supportive, bespoke sportswear, unique to fit each individual.

The brand will launch an online 3D body scanning app with accurate measurements and creation options through the integrated website.

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The sizing issue The research draws attention to the upsurge in online returns according to Clothing Retail (2015):

‘’the main reason for returning clothes bought online is due to poor fit, with (48%) of women citing this as the number one factor’’.

It was clear that the fit of clothing builds women’s confidence and the report establishes the fact that sportswear does not cater to womens’ body shapes.

Therefore, a new research investigation was carried out to debate the issues, this revealed, the fit of sportswear brands catered to women had numerous issues with the bust area and length.

Consumers find it challenging to find a sports bra which supports their breast along with their favoured fashion aspects.

The case is the same with leggings; brands only offer fashion or function and there were length issues for ‘shorter’ and ‘taller’ sizes.

Moreover, the results from a focus group proved that they felt that sportswear created by brands fit models well but in reality this is not always the case. An aim for sportswear industry would be to unite and empower women, giving them confidence in their purchases whilst remaining comfortable.

Every body is different and the clothes we purchase should reflect this.

"This bra has my desired fashionable qualities but it doesn't do my boobs any justice" - focus group study

The report investigates how this sizing issue in sportswear can be solved through 5 key trends:

Athleisure

Individualisation 3D Body Scanning

Female Empowerment

Authenticity

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Opportuni ty The global sales of sports clothing hit

‘£28.7 billion in the 12 months ending July 2015, up 17% on previous year’ (Hendry, 2015).

Based on current growth rates, (Key Note, 2015) predicts the value of the sports clothing industry in the UK is expected to

‘increase by 35.3%, from £4.56bn in 2015 to reach £6.16bn in 2019, driven by annual growth rates between 7.7% and 8.1%’.

Competitive advantage

The target consumers for this new opportunity are millennials’ (aged 18-34), the best way to segment is:

The sportswear market is becoming saturated with leading functional brands and a recent emergence of high street retailers responding to the recent demand for ‘Athleisure’. Competitors that offer fashion and function commonly place importance on catering to mass market sizes. There is no service in the the sportswear market which offers women specialised products catering to her needs of the perfect fit with fashion and function combined.

The Boxer - Bold innovators embrace their body, and pushes physiological boundaries against the mainstream and society.

The Yogi - Late majority who shy away from speaking out about sizing issues, they follow the new trends as they enter media but do not consider the benefits sportswear brands provide them.

This is where the new Business to Consumer (B2C) strategy differs, ‘TBC’ offers women an opportunity to purchase sports apparel without being restricted to standard sizes. The use of 3D scanning technology gives the brand all the rights tools to position themselves with a niche service but their use of visual identity and communication which allows them access to a wide range of female consumers. TBC focuses on the middle and upper-income markets.

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Strategy Solutions It is recommended that TBC caters to the two consumer types ‘The Boxer’ and ‘The Yogi’ who are dissatisfied or unaware with the current outlook on sizing in sportswear brands.

Our product uses a niche service (3D-A-PORTER Body Scanning App), and high-quality fabrics from ‘Sensitive Fabrics’, this provides key problem-solving capabilities, unlike competitors.

The table below shows the timeline for implementing TBC’s new strategy

OBJECTIVES.

FY 2016 Jun16

FY 2017

Jun17

FY2018

Jun18

Jun19

• Brand positioned as a growing leader • Generating brand awareness • Achieve positive net profit • Build consumer loyalty PHASE 1 PHASE 2 PHASE 3 Strengthen base. Launch brand. See awareness Prepare for launch. & sales rise.

Product & Pricing

The report analyses competitor’s costs, price sensitivity questionnaire, and estimating costs from direct costs: Sports bras range £40-60 Sports leggings range £50-70

TBC product range offers 3 design and length options for Sports Bras and Leggings.

Investing in 3D Scanning technology gives the brand the chance to apply a rapid skimming price strategy range, launching the products at a medium-high price range with a high quality.

Place The distribution will take place through E-Commerce. This provides a ‘quick, convenient and accurate measurement service for consumers.’

-focus group consumer

“Internet retailing saw the fastest current value growth in retail distribution of sportswear in 2015, up by 19% over the previous year”

Figure 2. Scanning App Mockup

- (Euromonitor, 2016)

Step One -Tight clothing.

-Hair up.

-Front Shot.

Step Two -Turn 90 ° right and look straight.

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Step Three -Back Shot.

-Add height.

Figure 3: Website order process

Step One: Sports Bra or Leggings - 3 fashion designs to choose from

chest waist hip

leg length

Step Two: 2 lengthing options to choose on scan

ORDER PLACED Share on

Store data

Step Three: Order placed > Share design or store preferences

Step Four: Track order progress

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Communication Aims

• To break down barriers that mainstream media has put up for women, and tackle sizing issues.

• To gain media coverage and introduce the brand to build consumer awareness.

Key players in sports & fashion industry will endorse the brand by documenting their experience and opinions beginning the brand-building social media campaign #TheBodyCollective.

Circulating Instagram and Facebook, inviting consumers to post photos with the hashtag and email address. Invites will be sent to consumers allowing them access to the launch event with industry professionals in London on the 1st June 2017 during ‘Women’s Sports Week’.

Through the social media buzz and industry leaders support of the brand, TBC hope to engage women in this national discussion about sizing and confidence in taking part in sports.

The momentum for the new brand will be followed up through: • Consistent Social Media.

• Newsletters to Subscribers.

• Video content from Launch on Glamour website.

• Big launch of the website.

• Orders commencing.

Figure 5

Figure 4

Figure 6

Figure 7

Figure 8

#thebodycollective

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Financials Requirements for expansion

To aid the launch the new brand will gain funding from: • Savings up to £13,000.

• 3 months Crowdfunding, aiming to raise awareness and an extra £10,000, if this aim is not reached, extra funding required can be taken out via a Bank Loan and repayments will be taken into consideration.

Profit & Loss Account

Year 1

Year 2

Year 3

Sales Cost of sales (direct or variable costs) Gross Profit Gross Profit Margin

30,000 20,850 9150 31%

120,000 83,000 37000 31%

240,000 166,000 74000 31%

12,000

20,000

32,000

4000 1000 3000 6000

4000 500 1000 6000

4000 500 1000 6000

26000

31500

43500

-16850

5500

30500

Overheads Wages 3D Scanning development Website Development & Maintenance Licensing Advertising materials Total overheads (indirect or fixed costs) Net profit

TBC expects to earn a modest profit by year 3 based on projected sales. The projections are based on the following key assumptions: • Early growth will be moderate as we establish awareness in the market.

• Primary suppliers will offer higher prices; after two years’ supplier power is expecting direct costs to decrease.

• Profits and wages will be reinvested in expanding the product and service line.

• Year 1 annual volume estimated at 1,500 expanding to 6000 by year 3.

• Net income is projected to reach £30,500 in year three as awareness increases and brand loyalty becomes more efficient.

Conclusion A risk factor in the plan is that the development of the 3D App technology has been under development for 3 years and the launch may be pushed to a later date and a competitor with bigger financials and contacts may be able to snatch this opportunity. This can be overcome by the fact that competitors will not be aiming to solve the same problem as TBC.

The report evaluates these growing problems and concludes that TBC will increase the sportswear market growth, and customer satisfaction needs.

It will bring value in society through women building a nationwide conversation to change the societal norms in the industry.

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References Clothing Retail 2013. Mintel Academic [Online] Available at: http://academic.mintel. com/homepages/default/ [Accessed 2 March 2016].

Euromonitor, 2013. Sportswear global. [Online] Available at: https://open.mediamath. com/news/46/uk-consumers-are-less-brand-loyal-when-trying-new-products [Accessed 2 March 2016].

Hendry, V., 2015. Active Autumn/Winter 17/18 Trends. Nottingham, WGSN. Key Note, 2015. Sports Clothing & Footwear, s.l.: Key Note.

Illustrations Fig. 1. Branding Essence. (2016) [Own Image] Fig. 2. 3D-A-PORTER Scanning App Mockup Steps, 2016. [Own Image] Fig. 3. Website Order Process Mockup, 2016. [Own Image] Fig. 4. Lisa Crossie (2016) [Online] Available at: https://www.buzzfeed.com/sheridanwatson/follow-these-woman-stat accessed 1 May 2016.

Fig. 5. Susie Bubble, (2014) [Online] Available at: http://www.shewearsfashion.com accessed 1/5/16.

Fig. 6. Shewearfashion, (2015) [Online] Available at: http://www.shewearsfashion.com accessed 1/5/16 Fig. 7 & 8. Emma & Charlotte (2015) [Online] Available at: http://lungesandlycra.co.uk accessed 1/5/16

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one size fits nobody