Dare2B Investors Pack

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INVESTORS PACk

The ‘parley’ range PHOEBE BRADLEY

CONTENTS 0.0: IN TRODUCTION ........................................................ pg.3 1.0:

RESEARCH 1.1: MARKET ............................................................... pg.4 1.2: CONSUMER ..........................................................pg.6 1.3: COMPETITORs .................................................... pg.8

2.0: DETAILS

2.1: THE PRODUCT ................................................... pg.10

2.2: THE BR AND ..................................................... pg.14 3.0: CSR STR ATEGy ...................................................... pg.16 4.0: IN TELLECTUAL PROPERTY ISSUES .......................pg.22 5.0: THE LAW: REGULATING DESCRIPTIONS .............. pg.24 6.0: PROMOTIONAL STR ATEGy ................................... pg.26 7.0: THE LAW:

7 . 1 : T H E S U P P L Y O F G O O DS A N D S E R V I C E S . . . . P G . 3 0

7.2: PRODUCT L IABIL ITY .................................... PG. 32 8.0: FINANCIAL FOREC AST .......................................... PG.34 9.0: CONCLUSION .......................................................... PG.3 6 1 0 . 0 : R E F E R E N C E S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P G . 37 11.0: APPENDIX .............................................................. PG.40

0.0: INTRODUCTION “Second to oil, the fashion and textiles industry is the most polluting industry in the world” according to Lever, C. (2018).

It is therefore in higher demand than ever, for all brands across the fashion business to convert to be more ethical. There is a huge shift in consumer behaviour, as shoppers are becoming increasingly aware of the impact that the fashion and textiles industry is having on the environment. With a rising demand for a more sustainable approach to the production and consumption of a product- right through to its disposal, brands are having to reconsider their methods of manufacturing, sourcing and distribution Rath et.al (2012). Mintel (2017) suggests that Generation Y

(Millennials) are the catalysts in the concentration of sustainable fashion, with 44% saying that they would like to see “more eco-friendly fabrics used in clothes”.

Despite this, ethical values are remaining to be seen as something that is ‘nice to have’ rather than something we ‘need to have’ according to Passport (2017). There is especially pressure on outdoor brands to improve their ethical status, as consumers are realising that they are ultimately destroying their own ‘playground’.

During this investment pack, I will be proposing ideas of a new ethical product for the Dare2B brand. The product is a 2-piece gym set consisting of leggings and a vest, for a female consumer. This investment pack will cover 8 main points, in which my proposed ethical product’s relevance will be justified.

1.0: research

1.1: THE MARKET

According to Passport (2018), sportswear sales are forecasted to see a steady increase in retail value in the future. This is due to athleisure increasingly becoming a part of consumer lifestyles- whether it be for fashion, they are paying more attention to their appearance whilst exercising, or due to general fitness interests (see figure 1 for the Sales of Sportswear through Retail Value RSP). Nevertheless, the current sportswear market is displaying strong potential: as of 2017, sports participation

seen a 9% increase from 2016, as 65% of adults participated in a sporting activity. Thus, resulting in almost 60% of people actively purchasing some form of sportswear in the past 12 months (Mintel, 2017). Women’s sportswear market in particular, is demonstrating potential for new product: Sports England states that 2.7% more of women are undertaking exercise on a weekly basis than men between 201516, proving steady market increase (Mintel, 2017).

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Whilst trend active-wear is more fashion focused, sustainability tends to not be a key focus. Despite this, Brands such as Adidas are persisting to be strong front-runners within the sportswear market; taking a more sustainable approach collaborating with ecofriendly organisation Parley for the Oceans, producing footwear and apparel products made from recycled plastic (Le Fort, C. 2015).

Like many, sportswear is not Dare2B’s current focus when thinking ethically when comparing to their outdoor range. Taking a more greener approach to their sportswear products would be opening a new concept for the brand- giving them a new unique selling point, and putting them on the forefront to compete against strong sportswear competitors such as Patagonia and Adidas.

1.0: research

1.2: THE CONSUMER Dare2B has hopes to aim towards a younger audience of around 2534 years, according to Lever, C. (2018).

Primary research results taken from a survey, however, depicts that Dare2B should actually be targeting even younger consumers, of around 1830. The survey indicates that 55% of people who completed the survey confirmed to care about the sustainability issues that impact the environment, as a result of the fashion industry; and whilst 70% of people were in the age bracket of 18-25, and 2635 year olds were the next majority age group, it is clear that Dare2B need to be focusing on aiming a new product to this consumer group.

See appendix for Survey Monkey results.

(Figure 2 - Consumer Board.

Market Segmentation adapted from Posner, H (2015).)

1.0: research

1.3: THE COMPETITIOrs

Whilst the brand is trying to target a younger consumer, Dare2B needs to be looking at competition within the sportswear market, as well as from a fashionability point of view. See figure 3 for Dare2B’s main competitor table analysis. Primary survey research supports the table in stating that Adidas, Nike and Patagonia are Dare2B’s main competitors for this product.

(See Appendix for Survey Monkey results)

(Figure 3 - Competitor Analysis Table.)

2.0 : Details of the product & brand 2.1: The Product: the parley collection

£65.00 (leggings)

‘Parley Vest’

FRONT

Competitors within the marketplace such as Patagonia are already working with Polygiene fabrics; therefore, price of the garments should not be affected too much when comparing to competitors’ prices.

This is a feature that many competitors are already using and therefore, is vital to be used within the new product. People are already paying extra for this feature with other brands, so it is an opportunity for Dare2B to catch up with the rest of the more sustainable fashion market.

BACK

‘Parley Tight’

FRONT

SIDE

BACK

PRODUCT INFORMATION: Dare2B plan to launch a new ethical product that is manufactured using thread and yarn spun from two different types of marine plastic waste; PET and Nylon. Dare2B will do this through the collaboration of American organisation Parley for the Oceans (see figure 4, (next page) for information on Parley for the Oceans). The gym-wear products will come as a two-piece seta top and leggings, and will eventually roll out to be a complete sustainable collection, with a variety of print designs and colours.

THE PRINTS: The prints on the fabric will reflect the ocean- colour palettes will be kept to a minimum as this helps keep cost, the dyeing process and waste to a minimum. Dyeing darker colours is a much easier process which would require less time, therefore, the new products will consist of darker shades- also reflecting the darker colours of under the sea (Chhabra. E, 2015).

PLASTICS: PET plastic (from water bottles) is the easier of the two plastics to melt and reconstruct into fibres for fabrics. Nylon plastic (produced from gill nets) is a lot harder to upcycle into fibres.

This is because they are constructed to be strong enough to avoid disbanding in salty oceans.

This means that to make the net plastic soft enough to produce for active-wear, a process of grinding the plastic into powder must happen before it is then extruded (Rhodes, M. 2016).

However, this method would have to be considered when thinking about timing and cost of production, as it requires partnerships with material engineers all over the world.

2.0 : Details of the product & brand

“Production processes play a key role in sustainability, and the ultimate aim should be wastefree and endlessly reusable products.�

(WGSN, 2018)

2.0 : Details of the product & brand 2.2: The BRAND

LOGO PLACEMENT: The Dare2B logo will be positioned on the front, top left hand side of each garment.

It will be embellished in, using recycled grey coloured thread.

Sleeveless Scooped back for extra length at back

Blue base colour- produced using SpinDye method

Print on back for style.

Print design inspired by the ocean

Mesh panels added for breathability and added style

Cropped capri style leg

As one of Dare2B’s most ethical products, the brand will want to shout about the new innovations undertaken, especially to justify the increased pricing of the products. The brand will do this through different ways:

BRAND PACKAGING: When ordering online, garments will arrive in a recycled brown cardboard box. This box will be simple with just the brand’s logo printed on to it. The box will also have a strapline on to promote the idea of recycling. “plastic pollutes” #recycle

(Example: a rough idea- inspiration taken from Zara online delivery boxes.)

(Example: label example for in-store products)

BRAND LABELS: The labels on the garments will be produced from recycled paper and will be 100% recyclable.

The aim with the new product is to educate the consumer about the impact plastic has on the environment- Oceans in particular. There will be a number of different mini facts about plastics on each label for each product, explaining the positive impact purchasing the product will have on the planet. The label will also feature the Parely for the Oceans logo- showing clear association with the organisation.

3.0: CSR STRATEGY “The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”

(WBCFSD, 1999)

According to Fashion Revolution (2017), manufacturing and sourcing methods are currently resulting in the suffering of both the environment and the consumer. As almost 60% of consumers, aged under 25, believe that retailers should be more transparent about the production of their clothing, it is clear that a brand’s social responsibility is of growing importance, for Millennials in particular (Mintel, 2017). This is why brands are now having to ensure that they are always considering the five main areas within CSR policies:

1.

Social responsibility: It is already fact that Dare2B has zero tolerance to modern slavery and human trafficking (Dare2B, no date).

The new products will also support this, and other issues surrounding the topics of women’s right and maintenance of cultural traditions, education and training. Dare2B will ensure that the manufacturing factory is transparent about working conditions to ensure to be abiding by the CSR social responsibility standards.

2.

Environmental impact Solutions: The gym set will require a dying process. According to WGSN (2018), almost one fifth of water pollution is produced as a result of dyeing methods within textiles. That is why Dare2B will invest in a more ethical method of dyeing named SpinDye (see figure 5 for advantages of using SpinDyeing). During the SpinDye process, the dyes are added in the construction of the yarn, causing the pigment to become a homogenous part of the fibre, meaning the colour will ultimately last longer (SpinDye, no date). See figure 6 for SpinDye process diagram.

The set will be produced with finishes that also make the product more ethical: miDori bioWick to soften the fabric, as well as Polygiene odour control (see figures 7 & 8 for advantages of using bioWick and Polygiene).

(Figure 5 - Infographic stating the advantages of SpinDyeing.)

(Figure 6 - SpinDye process diagram, taken from SpinDye Official Website.)

3.0: CSR STRATEGY

(Figure 7 - Inforgraphic about miDori bioWick Fabrick Softening finish.)

(Figure 8 - Inforgraphic about Polygiene Odour Control finish.)

3.

Sustainability:

To avoid extra transportation costs, the products will be sourced and manufactured all in one place: a Chinese vertical factory. From thorough into pros and cons of various countries, China proved to be the most time and cost efficient; the use of vertical integration means that the fabric as well as the product can be produced under the same roof (Hodson & Sinclair, 2017). The SpinDyes will be imported from Sweden and the Parley Plastics will be imported from the nearest Ocean prior to production of the yarn.

Despite ethical improvements, the product’s sustainability after disposal is still questionable.

As the product is ultimately still produced from synthetic plastic, it will not just dissolve into the ground. Dare2B will push consumers to close to loop-recycle these garments, by bringing them into store in exchange for a credit note of the same amount spent on the garment (as long as proof of purchase can be shown). The company can then recycle the old garments to produce new ones.

3.0: CSR STRATEGY 4.

Worker’s Rights:

Dare2B already has full control over their supply chain, with complete visibility of the providers who manufacture their products (Dare2B, no date). Whilst China is mapped out as one of their major material and component supply chains already, information will already be accessed regarding worker’s rights, fair wage, healthcare and health and safety to ensure they are to a high enough standard. Dare2B will ensure that the Chinese chosen supplier follow the ETI Base Code standards (Dare2B, no date).

5.

Philanthropy:

The new consumer has a growing interest in the environment and supporting causes that are suffering. By collaborating with the Parley for the Oceans organisation, Dare2B is actively supporting a new party, as well as sea life around the world, also giving the brand a positive and more ethical image.

A small percentage of profits from the new collection will also be donated to the Bangladesh Protibondhi Foundation school in which Dare2B already supports (Dare2B, no date).

“A commitment to sustainability is imperative for the fashion and textiles industry. Now is the time to recognise growing consumer interest and demand for transparency and accountability as a key driver for investing in fibres and resources with lower environmental impact.”

WGSN (2018)

4.0: intellectual property issues

(Figure 9 - Inforgraphic about relevant Intellectual Property Issues.)

5.0: the law: regulating descriptions

(Figure 10 - Inforgraphic about the Law Regulating Descriptions.)

6.0: promotional strategy Primary research from a survey suggests that it should become Dare2B’s mission to educate the consumer about the environmental issues surrounding fashion. Despite over half of people stating to care about environmental issues surrounding the fashion industry, over 50% of people claimed to purchase sportswear every 3 or 6 months. This validates that 52.5% said that

how sustainable a product is does not affect their purchase decision- they are unaware that purchasing so much in such a short amount of time is actually extremely unethical. 29% of people also claimed to be unaware of any sustainability issues, thus further supporting the urgency to educate through promotion, as this could lead to further sales. See Appendix for Survey Monkey results.

SOCIAL MEDIA: Because Dare2B plans to target a new, younger consumer, promotional strategies will differ slightly. Social media plays a huge part in modern society- especially within the Millennial demographic as technology is becoming ever more prevalent within their everyday life (Fashion Revolution, 2015). To advertise on social media is free, however, platforms such as Facebook and Instagram now have options for paid promotion- with this happening, brands are having to invest in paying for promotion via these platforms in order to reach the consumer. This is why Dare2B will use 5% of their 10% marketing spend budget on paid social media advertising- this way, the brand has full control over content that goes out and the message given to consumers.

Instagram mock up of promotional material.

VIDEO: Dare2B will also spend 5% of marketing spend on producing a promotional video for social media- as this tends to be their main form of current promotion. Current videos show the products in action; there tends to be lots of product focus.

The videos are fun- they are not only promoting the product/ brand but they are humorous (Dare2B Official YouTube, 2017).

Dare2B will go down the route of fun, but in a more inspirational way as they will be addressing a serious matter of the situation of the planet’s oceans and how the consumer can help.

6.0: promotional strategy To ensure that the correct product is targeting the Dare2B consumer, I will follow the Customer Impact Diagram as a way to question the relevance of my proposed product. See figure 11:

(Figure 11 - Consumer Impact Diagram.)

Consumer decision-making models are widely used by businesses for the research of consumer behaviour (Professional Academy, no date). To ensure to appeal to the consumer effectively, I will work from a consumer decision making model adapted from the Engel, Blackwell and Miniard 1990 Purchase Decision Model. See figure 12:

Problem Recognition:

what do they need?

New gym clothes. They must be ethical because they are more aware of the problem of the impact on the environment.

Information search:

Research into ethical sportswear will begin via search engines such as Google. Dare2B will come up as recent news of providing newly, improved ethical products.

Alternative Evaluation:

Competitor shopping- comparisons between prices, practicality, fashionability and sustainability. Dare2B will be priced within the same as competitors to be relevant and considered

Purchase Decision:

The consumer will finally decide on the Bare2B brand, after researching into new innovations undertaken.

Use, Care & Storage:

Polygiene finish- the garment will not need to be washed as regularly,& when washing- on a cold 30-degree wash. It is easy and practical to wash. The miDori bioWick permits fast drying too.

Post Purchase Evaluation:

The consumer will analyse their purchase. This will influence them on whether they return to purchase more from the store/ brand.

Disposal:

Dare2B will encourage the idea of recycling. They will offer an exchange deal in store- bring in old clothing and receive a credit voucher to spend in store in return. This encourages brand loyalty from the consumer.

(Figure 12 - Consumer Decison Making model.)

7.0: the law: SUPPLY OF GOODS AND SERVICES & PRODUCT LIABILITY

(Figure 13- Inforgraphic about the Law On The Supply of Goods & Services and Product Liability.)

8.0: financial forecast

Dare2B will charge ÂŁ65.00 for the Parley Leggings. Competitor research into Patagonia justified this price (See figure 15). The leggings will be available both online and in-store; whilst Dare2B have almost 550 stores worldwide, the product will only be available to purchase in half of them (Dare2B, no date). The leggings will make a total profit of ÂŁ291,996 according to the forecast sheet (see figure 16). The leggings will be on sale for a period of 12 weeks, from June to August, the warmest months of the UK calendar. The leggings are a S/S collection, with possibilities of a future A/W collection.

(Figure 14 - Costing sheet for Parley leggings) (Figure 15 - Sales Forecast for Parley leggings)

9.0: conclusion To conclude, Dare2B forecast clear potential to take more successful ethical steps in the same direction as competitors such as Patagonia.

Ensuring to keep up with the latest sustainable methods such as upcycling marine plastic waste, and a greener way of dyeing will keep Dare2B at the forefront with other eco-friendly brands. Collaborating with Parley for the Oceans shows potential to open the brand to a wider consumer base of people, people who are ethically conscious and willing to buy into sustainable items. Aiming this new product to a younger consumer market ensures that the brand is keeping up with the current sportswear/ sustainable fashion market situation catering to the consumers who are demanding more products like this.

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10.0: references

10.0: references

11.0: APPENDIX Survey Monkey Results

11.0: APPENDIX

Screenshot from Alibaba.com

Screenshot of currency rate from The Telegraph.

11.0: APPENDIX Screenshot of Patagonia comparison table, taken from the website.

11.0: APPENDIX

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