Anthropologie Brand Analysis by Rachel Murray

ANTHROPOLOGIE Internal Analysis

COMPANY BACKGROUND -Founded by Dick Hayne -His friend moved to Philadelphia and was having trouble finding her style among the stores that were available to her -Created a lifestyle brand designed for creative, educated and affluent 30-45 year old women -First store opened in Wayne, Pennsylvania in 1992.

COMPANY VALUES “The brand name evokes obvious association to the academic discipline of anthropology which is the “study of humanity” with main concerns of topics as “What are humans’ physical traits?” and “How do humans behave?”” They support creative individuals clever details and fine craftsmanship Sustainability: Reuse and Renewal, Alternate Energy, Recycling Global collaborations Charitable programs: Big Brother, Big Sister, Alex’s lemonade stand Children’s Scholarship

CUSTOMER BASE : AGE / DEMOGRAPHIC -creative-minded woman, who wants to look like herself, not the masses. She has a sense of adventure about what she wears, and although fashion is important to her, she is too busy enjoying life to be governed by the latest trends. -adventurous -likes exotic travel, well traveled -affluent but not materialistic -enjoys cooking and gardening -annual income of $150,000-$200,000 -30-45 years old, have seen the age vary into the 20’s -college or post-graduate education -married with kids or in a committed relationship To her, Anthropologie is a portal of discovery—a brush with what could be. A place for her to lose—and find—herself.

“We create a story, who is she? Where does she live? What does her favorite sweater look like?”

soft and delicate Casual wearable pieces with a feminine spin.

easy cool Pieces perfect for the fashionable woman on the go.

elegant classic Elevated basics that transition perfectly from work to play.

modern sporty Fashion for the more casual Anthro shopper.

boho chic Boho-chic is a style of fashion drawing on various bohemian and hippie influences

Anthropologieâ&#x20AC;&#x2122;s clothing assortment is split up into dresses, sweaters, tops, jackets and coats, jeans, pants, jumpsuits and overalls, skirts, intimates and sleepwear, loungewear, activewear, swimwear, petites and sale. On the website you can choose to shop by trend, shop by brand, or by monthly lookbooks. Prices vary based on the item and brand, but a dress averages around $130-$210.

CLOTHING

Anthropologie has a huge assortment of accessories including jewelry, socks, handbags, belts, hats, scarves, eyewear, cold weather accessories and tech accessories. Prices range from less than 25 to over 500.

ACCESSORIES

Different styles: Boots, Sneakers, Flats, Heels & Wedges, Mules & Slides, Sandals. Featured Brands include Tretorn, Gola, Veja, Superga and Sam Edelman. Prices range from $50 to $600.

SHOES

The beauty and wellness section is split up into 6 categories: bath and body, makeup, skincare, haircare, wellness and fragrance. You can also shop the mask shop, travel sizes, gifts, and sale. Brands vary from Mario Badescu to Sachajuan. and prices average around $22 - $38.

BEAUTY

Categories include Furniture, art and wall dĂŠcor, wallpaper, candles. Kitchen & dining, Bedding, bathroom, organizing & storage, hardware, room dĂŠcor, rugs, curtains, lighting, garden & outdoors, books & stationary, gifts, kids. Price range are bellow $25 to over $6 000

HOME GOODS

-For life’s extra-special moments, BHLDN helps brides-to-be celebrate with vintage-influenced special occasion gowns and dresses, accessories and décor. Brought to you exclusively by Anthropologie, BHLDN (pronounced “beholden”) offers a carefully edited assortment of wedding gowns, bridal party dresses, accessories, gifts and décor that caters to the bride in search of unusually beautiful things. From fine jewelry and ethereal dresses to handmade cake toppers, vow journals and more, BHLDN helps brides create events brimming with beautiful garments and objects reflective of their personality. For brides and bridal parties looking for outfitting assistance, BHLDN offers styling services online, by phone and in BHLDN boutiques, located in select Anthropologie stores across the country.

BRIDAL

SOCIAL MEDIA ADVERTISING PINTREST This network has proven itself to be a successful revenue driver –

especially for retail brands. Anthropologie’s Pinterest profile is certainly a conducive shopping environment. With nearly 771,750 followers, the retailer is building an impressive fashion go-to platform – their boards incorporate personal shopper picks, seasonal style, wedding, crafts and decorating. It’s a relevant platform for everyday fashionista and avid anthropologie followers.

SOCIAL MEDIA ADVERTISING INSTAGRAM Instagram is all about connecting through images. Instagram is an excel-

lent way for brands to share product insight and behind the scene life. In fact, most companies are utilizing Instagram. Anthropologie posts pictures of employees, products, designs, apparel, pets and everyday life to bridge the gap between the brand and consumers. They had the genius idea of creating related content for all their stores: Anthropologie, Urban Outfitters and Free People.

BRANDS The majority of Anthropologieâ&#x20AC;&#x2122;s products come from their own line, but the store also features a wide variety of other brands. Examples include Chan Luu, Jeffrey Campbell, Leviâ&#x20AC;&#x2122;s, Keds, and Mara Hoffman. Anthro does not have to put forth money to produce products, they can feature other brands instead. Buying into other brands also allows Anthro to offer a wider assortment of products. Exclusive products and collabs bring in new customers.

There are currently 225 Anthropologie Group stores. 201 are located in the United States, 13 in Canada, and 11 in Europe. With approx. 24,000 employees working for the URBN brand, the company is responsible for much employement around the globe.

IN STORE EXPERIENCE “One of our core philosophies,” explains Anthropologie president Glen Senk, “is that we spend the money that other companies spend on marketing to create a store experience that exceeds people’s expectations. We don’t spend money on messages — we invest in execution.” The shopping trips are like nothing you have ever experienced before. Anthropologie lays out their products so that clients have to walk through every part of the store. Every section, whether it being bedding, clothing or kitchen tells a different whimsical story. All senses are awakened as you walk in.

ANTHROPOLOGIE external analysis

MARKET PLACEMENT

ANTHROPOLOGIEâ&#x20AC;&#x2122;S PLACE IN THE DOMESTIC U S MARKETPLACE

Our retail segment competes on the basis of, among other things, the location of our stores, website, mobile applications and catalog presentation, website design, the breadth, quality, style, price and availability of merchandise and the level of customer service offered. Some of our competitors have a greater name recognition and financial and marketing resources. Our Anthropologie stores also face competition from small boutiques that offer an individualized shopping experience similar to the one we strive to provide to our target customers.

MARKET SHARE SIZE

STRENGTHS & WEAKNESSES

The specialty retail and the wholesale businesses are each highly competitive in both the domestic and international markets. We believe that the variety of products and our unique store and website experience offered by our retail segment help differentiate us, but this also means that Urban Outfitters, Anthropologie, Free People, Terrain and Bhldn stores compete against a wide variety of smaller, independent specialty retailers, department stores and national specialty chains. Some of our competitors have a greater name recognition and financial and marketing resources.

WEAKNESSES -Price -Limited aesthetic options -Limited Target Audience -Marketing and advertising approach

STRENGTHS -Retail Stores -Online -Mobile Apps -Catalog Presentation -Experience -Quality -Style and Aesthetic -On trend

The apparel industry is dominated by Nike. The Nike Brand, as well as Converse, combined annual sales top the scale at 32 billion dollars in 2016. Nike makes the majority of their sales in the footwear category.

TJX is the second highest earner with 2016 annual sales of 30.94 billion dollars.

Third is VF Corporations with brands such as The North Face and Timberland. VF made 12 billion in revenue in 2016.

L Brands is a close fourth with in annual sales. L Brands owns Victoriaâ&#x20AC;&#x2122;s Secret, Bath & Body Works, and Henri Bendel among others.

Our Place in the Womenswear Market Looking at the top four earners in the apparel industry reveals a common theme. These brands are all successful because they predominantly specialized in one category and did it better than their competitors.

Womenswear sales in USA in 2016 were approximately $114,000,000,000.

Sales in womenswear as a whole are expected to increase 2.71% in 2017

Anthropologieâ&#x20AC;&#x2122;s net sales in 2016 were $1,384,943,868

Anthropologie occupied 1.2% of the total womenswear market in 2016

Women’s Outerwear Market

In response to this, we have bought heavily into outerwear for this 2017 fall/winter season. We will take into account the projected stabilization in the women’s outwear category and our outerwear sales for this fall/winter season, and will be buying a smaller selection focused on customer favorites for the coming seasons. Our 2018 selection will be smaller as a result.

Women’s outerwear accrued almost 11 million in total sales in 2016, and made up 9.4% of the total womenswear

COMPETITORS M A D E W E L L F R A N C E S C Aâ&#x20AC;&#x2122; S N O R D S T R O M

OUR OUTERWEAR ASSORTMENT Anthro sells coats/jackets that range in price from 78998. Out of the 230 coats/jackets we are offering online and in our 225 stores for this season, 7 of them are Anthropologie brand while the rest are from outside designers such as Citizens of Humanity, Bailey 44, and Lost in Lunar.

These other companies are similar to Anthropologie in price point, style, accessability and advertising. Francescas is a boutique chain that caters to the southern belle. Madewell is known for their amazing denim and minimalistic styles. Norstrom is known for their giant selection of brands, styles and price points.

COMPETITOR ANALYSIS

Madewell currently offers 40 coats/jackets ranging in price from 98-798. The majority of Madewell coats/ jackets are Madewell brand, with limited selections from other brands such as Karen Walker. Madewell collaborates with other brands to create unique coat/jackets such as their madewell x b sides and madewell x penfield collabs. Madewell is a branch of the J. Crew Group. They have 113 locations and their 2016 net sales were $341,600,000. Madewell is similar in the creation of a lifestyle, but their target customer has a different lifestyle and aesthetic than our customer. We are able to offer a wider variety of outerwear in a wider variety of prices than Madewell, though they offer more options from their own Madewell line.

Francesca’s coat/jackets range in price from 38-64. Like Anthro, the majority of Francesca’s coats/jackets are not Francesca brand. They carry a lot of Mi Ami and Blue Rain. Francesca’s is a boutique style store with 670+ stores in 48 states with 2016 net sales of $439,377,000. Francesca’s targets a younger customer group. As a result, their selections are not as high end or expensive as ours. They buy in smaller quantities than we do. Their outerwear selection is small, and can differ greatly based on the store. Unlike us, they do not offer every option online. This gives each store a more unique boutique feel. Our store experience is more finely curated and immersive.

COMPETITOR ANALYSIS Nordstrom is a high end department store. They have 123 full line locations in the US and Canada and their 2016 net sales were $14,498,000,000. Nordstrom sells a wider variety of coats/jackets than both Anthro and Francesca’s. They carry options for men’s, women’s, and children’s departments. Nordstrom has their own branded line, but mostly carries other designers. Prices range from 29.40-7,590. Anthropologie cannot compete with the huge selection offered by Nordstrom. Where we excel is in offering a curated selection of outerwear, along with other clothing, that resonates with our customer. We create a lifestyle and a story for our customer to buy into, unlike Nordstrom.

EXTERNAL MARKET TRENDS In a recent survey from Statista the vast majority of affluent women (making 100k to 200k) reported spending 0 dollars on outerwear in the past 6 months. Of the women who reported buying outerwear, most of them spent under 250 with a few spending up to 499. Taking this survey, along with the projected lack of growth in the outerwear industry, into account, we will be buying a smaller selection of outerwear for 2018. The vast majority of our selection will be under 250, with a small selection of pieces reaching up to 500. Climate change has contributed to warmer, shorter winters. Temperatures are projected to continue rising. This environmental trend has led to a decrease in demand for outerwear. Shorter winters mean less wear on coats and jackets, and thus these pieces do not need to be replaced as frequently.

MILITARY INSPIRED This trend is an excellent example of trickle up, since it actually came from military uniform and evolved over the years. This trend has been around for centuries and isn’t going away. Every year designers reinvent this statement style.

WHO BUYS ANTHROPOLOGIE Anthropologie has always catered to more artistic clients. They don’t sell basic staples, they sell fashion pieces that you can’t find anywhere else. They are inspired both by the runway and street style while always staying true to their brand image. They always have their customer in mind when selecting their new styles. Online shopping has changed the way people spend their money. Anthropologie is amazing at creating an omni channel that offers a seamless experience from stores to their online website. With internet people are more informed about your brand and products than they used to be. This has also allowed companies to learn more information about how their customers shop and what they are really looking for.

CHARMS SEOUL

BALMAIN