Shared Closet by Joung Min Han

Shared Closet Joung Min Han

Parsons the New School for Design

Senior Thesis Seminar Fall 2009

Instructors: Robert Rabinovitz

Norman Fryman

Project Overview

Phase 1: Discovery 1. Observation of current situation 2. Problem indication 3. Context 4. Formation of need 5. Possible solutions: brainstormm

Phase 2: Research & Analysis 1. Current solutions AVELLE Men’s Wearhouse Rent The Runway 2. Statistical facts 3. Mass media & publications: articles, news

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Phase 3: Solution & Support 1. Abstract of solution 2. Value chain 3. Store interior plan 4. Advertisements 5. Demographic: customer profile personas scenarios/storyboard 6. Financial plans: income statement cash flow projection

Discovery

1. Observation of current situation 2. Problem indication 3. Context 4. Formation of need 5. Possible solutions: brainstorm

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Phase1-1 Project Direction: Observation

Initial Research What is Design? Expansion of design’s territory Intro:

The dictionary meaning of a word ‘design’ is simply planned details. The details can be about an object’s features, a system, or anything that needs planning and consideration. Maybe that is why people are relying heavily on design to solve the problems that they faced or to fulfill their desires. It is a method that a product can primarily show its appeal to the customers and it also is a tool that the makers use to communicate with the users. The power of creating innovation, invention, development, and awareness of something new and different enabled the field of design to expand in many areas. The role of design will expand without stopping as it is becoming a communication tool in different areas. In paper is about the cases of the expansion of design in different areas.

Conclusion: Victor Papanek, an author of Design for the Real World, once said “…design has become the most powerful tool with which man shapes his tools and environments (and, by extension, society and himself).” The role of design became extremely important, since it is a way that we can create what we needs and through that changes and shapes his surroundings. Not only its role is getting bigger, but it is also evolving through adopting new aspects and changes in society. Design will be a tool that people use to solve the problems and shape a better lifestyle.

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logo: http://www.zipcar.com/

logo: http://www.kia.com/

Phase1-1 Project Direction: Observation

Initial Research: Case studies

A conceptual design can change people’s view about their properties through a system. Zipcar is a car sharing system developed to prevent individuals getting their cars, to reduce the waste of resources. The whole system was designed to let car users to have an access to a car and pay for the time that they used it. Therefore, the Zipcar members feel like they own a share of the cars that they can use. In this case, design is benefitting the society and individuals by creating the alternative solutions to fill the needs with a better consequence (both environmental and social).

Kia Motors was one of the leading vehicle companies in South Korea. By year 1998, which was period of financial crisis in Korea, Kia faced financial difficulties and got merged with Hyundai Motors. Unfortunately, even after the merge, Kia’s sales did not grow significantly. The solution that the firm came up was to adopt Peter Schreyer, a former chef creative director of Audi and Volkswagen, as Chief Design Officer and as vice president of the firm. The result was remarkable. Their sales increased by 14% and the improvement on design was almost a surprise. The benefits that Kia motors gained by having a designer as their vice president is an example that shows how design affects the business.

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http://i.treehugger.com/images/2007/10/24/Fair_Fashion.jpg

Project Direction: Analysis

Problem indication: Ownership and Consumption

Personal ownership is required to best enjoy the benefits of a product.

This makes it difficult for teenagers, college girls or young professionals who do not have sufficient funds to afford to purchase trendy fashion items each season. The desire to wear trendy and fashionable styles conflicts with their financial status.

The alternatives that affordable brands such as H & M and Zara offer are well designed but mass produced with inferior quality. If they do purchase these goods, they are often stuck at the end of the season with outdated clothing that no longer suites their lifestyle or fits into their tiny closets.

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Project Direction: Observation

Situation: Fashion is about ‘change’

Fashion is about creating change and is a huge concern for most girls.

Designers create thousands of new styles each season which they hope will be better than last season. Supporting obsolescence by extravagant advertising while remaining trendy and fashionable has resulted in overproduction and unwarranted inventory.

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Project Direction: Conclusion

Brainstorm: Relations among focus concepts

FASHION

PRODUCT SERVICE SYSTEM

SUSTAINABLE BUSINESS

CONSUMPTION

OWNERSHIP

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Project Direction: Conclusion

Formation of Need

Maslaw’s Hierarcy of Needs

where the demand of fashion and luxury goods play the role

Seasonable obsolescence and depreciation results in ownership of goods that will no longer be used and are worth much less than the purchase price. Where to store these goods becomes a problem. A service is, therefore, required to help consumers without a strong financial standing to be able to feel comfortable by wearing stylish, fashionable goods each season without creating waste or facing financial hardship.

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http://www.viewpoints.com/images/review/2007/162/22/1181619211-15927_full.jpg

Project Direction: Possible solutions

Brainstorm: solution idea 1 of 3

Shared Closet: Local clothing rental places Interior - Looks like typical specialty store (photo is from Intermix) 1.

Racks 2.

Shelves 3.

Stands 4.

Changing rooms

Plans (different payment options) available: • Occasional: work, student, party wear plans • Unlimited plans • Friends plan Item categories: 1.

Accessories: shoes (higher rent fee), bags, scarves, hats, belts 2.

Tops: blouse, t-shirts, 3.

Dresses: evening, day 4.

Pants: jeans, formal 5.

Skirts: denim, formal

Requirements: 1.

Membership (with? or without? annual fee) 2.

Deposit (50% of product’s retail value – too much?)

3.

Rent fee: 7~10% of product’s retail value (per day.

Discounted rates for longer days. *Etc. 1 day = $20, 3 days = $50, 7 days = $100) Item categories: 1.

Accessories: shoes (higher rent fee), bags, scarves, hats, belts 2.

Tops: blouse, t-shirts, 3.

Dresses: evening, day 4.

Pants: jeans, formal 5.

Skirts: denim, formal

Plans (different payment options) available: • Occasional: work, student, party wear plans • Unlimited plans • Friends plan

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Screenshot from Shopbop.com

Project Direction: Possible solutions

Brainstorm: solution idea 2 of 3

Online Closet: Order rent system Rent system: 1.

Select the location (will have one supplier in one state –

to enable fast shipping/return speed and reduce the shipping costs).

Each locations carry different styles reflecting demographic characteristics.

2.

Select the items with different price ranges depend on the length of the rent into a cart 3.

Review the rent fee, tax (if applicable), and deposit (will be returned within 7 days after items are received) 4.

Check out

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Screenshot from Ebay.com

Project Direction: Possible solutions

Brainstorm: solution idea 3 of 3

Platform: Rentebay Provides users to post their clothing with different rent prices. Instead of selling their items through existing model “ebay,� they post their items to rent out for other users with a lower price.

Just like Ebay with rent items instead of selling the items.

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Research & Analysis 1. Current solutions AVELLE Men’s Wearhouse Rent The Runway 2. Statistical facts 3. Mass media & publications: articles, news

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Researches & Analysis: Existing Solution

AVELLE [bag borrow or steal] Case Study 1 of 3

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AVELLE logo: https://www.bagborroworsteal.com

Pros

Cons

• •

•

• •

• • • •

Stable rent system Various partnerships: cleaner, shipping company, repairman Good eputations “Think of what you borrow as being on loan from a good friend.” allow consumers to use items much freely and tears the barrier for a “borrowed” item “Steal it” option: allow users to purchase the item when they really love it Membership benefits with reasonable discounted rates for longterm rents Insurance system Outlet system

•

Limited choice of product categories (carries accessories and handbags only) Absence of physical store: limits the accessibility hard to get a real image of the product (withouth actually trying it on)

Researches & Analysis: Existing Solution Men’s Wearhouse Case Study 2 of 3

Pros

Cons

•

• •

• • • • •

Branches throughout the nation (Retail Chain/distribution channel) Good reputation with a strong brand image Stable business model Supply chain Various price points Purchase options available

Limited category: Men’s wear only Products are limited to suits and formal wear

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Researches & Analysis: Existing Solution

Rent The Runway Case Study 3 of 3

“Rent the Runway is hoping to make high-end fashions much more accessible and almost as easy as renting a movie from Netflix.�

-The New York Times

Pros

Cons

• • • • •

•

Stable rent system An exclusive member access system Insurance system Newly supplied styles Selective choice of styles

•

•

Limited choice of product categories: focused more on occasional dresses (such as cocktail dress) Absence of physical store: limits the accessibility hard to get a real image of the product (withouth actually trying it on) Members only access limites the accessibilities

Researches & Analysis: Mass Media & Publications

WWD “PPR Sales Drop 7.6 Percent In Q3” Article 1 of 3

by Elena Berton Posted Wednesday October 21, 2009 From WWD Issue 10/21/2009

Sales of PPR, a major luxury fashion corporation, dropped by 8 percent due to economic crisis.

Gucci’s Icon bag. Courtesy Photo

Gucci Group is also suffering in sales of its major brands such as: Gucci’s sales declined by 7 percent Bottega Veneta by 11.6 percent Yves Saint Laurent sales decreased 20 percent

Logo of Tommy Hilfiger

October 20, 2009

By KATIE WEISMAN Growth in sales of “bridge collection” such as D&G by Dolce and Gabbana, Tommy Hilfiger or Tory Burch shows a white space in the fashion industry.

Consumers’ demand for a luxury good is rising despite difficult economic situation.

Sales of Tommy Hilfige rose by 21 percent D&G sales increase in average of 8 percent annually

Logo of Tory Burch

Researches & Analysis: Mass Media & Publications

‘Affordable Luxury’ Bucks the Crisis Article 2 of 3

Researches & Analysis: Mass Media & Publications

Rent the Runway Ramps Up Article 3 of 3

New York Times Bits Rent the Runway Ramps Up

By JENNA WORTHAM

Increase in assigned members of 100,000 within 2 month 1,000 orders were shipped making $100,000 in revenue 10 percent of RTR’s customer base are repeat renters Interest from male customers Style Advisors Present for girlfriend

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Researches & Analysis: Studies

Waste Couture: Environmental Impact of the Clothing Industry

FAST FASHION DISPOSABLE

SYNTHETIC FIBER POLLUTION

ENVIRONMENT

WASTE

EMISSION LOW WAGE

Luz Claudio

“estimated 21% of annual clothing purchases stay in the home.”

by Recycling of Low Grade Clothing Waste, 2006 report “more than 68 pounds of clothing and textiles per person per year.” “clothing and other textiles represent about 4% of the municipal solid waste.”

by EPA Office of Solid Waste ...and the figures are rapidly growing

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Researches & Analysis: Statistics

Product Service System (PSS)

What is Product Service System (PSS)?

As sustainable business models including consumption and production become an issue within most of industry, various methodologies to minimize the environmental effect were established.

A term “dematerialising” also became a way to achieve production with lower amount of environmental effects. Product service system is one of detmaterilization.

As it was mentioned above, the main purpose of a product service system, which will be used as PSS from now on, is to provide a sustainable business model that satisfies both consumption and production. It is also known as a function oriented business model, which companies and businesses provide a related service and the product to satisfy the best needs of consumers. The relationship between product and service varies due to different form of PSS. There are three main types of PSS including; product oriented PSS, Use oriented PSS, Result oriented PSS.

Types of Product Service System

The product oriented PSS is a form that the ownership of the physical and tangible object is belongs to the consumer but a further service will be provided. This form of PSS provides necessary services along with the product to satisfy the need of consumer at most efficient level. The impact of this form of PSS is that consumers can benefit out of the product at best without purchasing or consuming another or an alternative items; therefore, the consumption to fill the needs can be minimized through this type of PSS. A mobile phone business is a perfect example for this type of PSS. The carrier sells the phone to the users and they provide phone connections and other services.

The use oriented PSS is based on consumers’ usage of the objects’ functions, which the ownership of the tangible object or asset belongs to the provider, while the users and consumers are paying the usage of its functions only. The examples, which are much more familiar terms to everyday consumers, are including sharing and leasing. This type of business model is expanding into various markets such as a motor, housing and even in apparel industry. Zip car is one of the most recent and successful example of use oriented PSS, which the business motto is also based on creating a group consumption to prevent waste of resources and decrease the individual consumptions. Another example is showing the use oriented PSS is reaching into new areas, which is an apparel industry. Bag borrow and steal is a fashion accessory leasing system that allows users to lease the items for certain period of time and pay only for the amount of time that they used. It was also called a Netflix for a bag, not to mention that Netflix is also one of the major successful business models in this category.

The last type is a result oriented PSS, which a service replaces the product. This type of PSS satisfies the needs of consumers without providing a physical product; instead, it fills the need through a service, which is an alternative to the existing product. There are different examples, one is a voicemail replaces the role of an answering machine and a home order channels, which enables users to order the TV programs or movies by simply clicking their remotes, replaces the DVDs even, in further sense, the DVD rentals.`

Simply Product Service System is enabling consumer to enjoy the maximum value of the product by providing an appropriate services.

Conclusion: The impact and necessity of Product Service System Through the research it was found that many articles have stated that the product service system is pushing current business models into much more eco-friendly and sustainable form. The impacts of PSS are including; maximizing the usage of a product through a combination of product and service (product oriented), reducing the individual consumptions of tangible products by group consumption (use oriented: lease and share), and reducing the production, which consumes the resources, by providing an alternative service that can replace the physical products. PSS is not only changing the production system but it also is changing how consumers consume the utilities. By allowing functions to replace the physical products, it is creating different atmosphere in the consumption environment. I believe that PSS will provide a new business model that allows users and companies to consume and provide in a more sustainable manner.

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Researches & Analysis: Statistics

Average income of household

Age of Householder Householder under 25 years Householder 25 to 44 years Householder 45 to 64 years Householder 65 years and over

United New York States State Bronx $26,747 $27,611 $26,389 $59,704 $36,328 $55,413 $61,962 $65,274 $38,915 $32,158 $31,734 $21,677

Analysis

Kings Manhattan Queens Richmond $31,631 $36,514 $38,697 $30,444 $49,228 $82,689 $58,233 $71,928 $47,989 $62,432 $62,025 $80,136 $20,995 $30,052 $31,085 $34,003

According to US Census Bureau, average income of household under age of 25 is around $27,000 around the nation and $28,000 in New York State. This tells that the householder, after paying the necessities and housing, has approximate disposable income of $5,000 to $6,000 annually. Monthly disposable income may be around $400 to $500.

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Researches & Analysis: Mass Media & Publications

Analysis: Conclusion

$

Recession have caused almost every business in the economy to suffer. When it comes to fashion, which is not a necessity that people requires to make their lfe, it is even harder to maintain the sales when people have financial difficulties.

The case of PPR sales dropping in a huge scale indicates that consumer spend less money on fashion when there is a financial crisis. The New York Times article about affordable luxury brands shows that that the existing business model of luxury fashion industry requires consumers to pay greater money than they could afford; therefore, those budget/affordable ‘bucks the crisis’ as it says in the article.

There is a need of an alternative consumption option other than individuals’ “ownership” such as collaborative consumption and “group ownership.”

Solution & Supports 1.

2.

3.

4.

5.

Abstract of solution Value chain Store interior plan Advertisements Demographic: customer profile personas scenarios/storyboard 6. Financial plans: income statement cash flow projection

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Solutions & Supports

Business Model

1. CHOOSE online or in-store

MEMBERSHIP

SHARED CLOSET

4. RETURN

2. PAY unlimited membership pass or À la carte

3. TAKE

Solution

Shared Closet is an apparel rental business, providing clothing to fashion conscious consumers with affordable price range.

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Solutions & Supports Value Chain

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Solutions & Supports: Prototype

Store Interior Plan All levels

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Store Interior Plan Ground level

http://www.traderscity.com/board/userpix19/18956-residential-glass-elevator-1.jpg

Solutions & Supports: Prototype

glass elevator

register

http://images.inmagine.com/img/zefarf/crzs005/crzs005001.jpg

wall closet

window display

http://www.apartmenttherapy.com/uimages/chicago/2-19-08closet7.jpg

Barneys Window Display

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Store Interior Plan Ground level

http://www.traderscity.com/board/userpix19/18956-residential-glass-elevator-1.jpg

Solutions & Supports: Prototype

glass elevator

register

http://images.inmagine.com/img/zefarf/crzs005/crzs005001.jpg

dresser (4 angles)

fitting rooms

storage

http://www.homelement.com/images/1386-Dresser-Mirror.jpg

http://www.wornthrough.com/blog/wp-content/uploads/2010/02/moving-into-compact-storage.jpg

http://farm4.static.flickr.com/3061/2370495222_eca3947627.jpg

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Solutions & Supports: Prototype

Store Interior Plan Ground level

mezzanine level

The mezzanine level will be located on the semisecond level on top of one corner on the ground floor. The yellow triangle on top-right in the floor plan is where the mezzanine level will be located.

Memership desk and information center will be located in the mezzanine floor.

http://www.flickr.com/photos/postgreen/2437963771/sizes/o/

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Solutions & Supports: Prototype

Advertising Campaign Teaser

+

+ = $0

Visit

www.sharedcloset.com for more information

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Solutions & Supports: Prototype

Advertising Campaign Narrative 1

“endless styles�

www.sharedcloset.com 35

http://blog.modelbase.co.za/wp-content/uploads/2008/12/shopping_freundinnen2_568_01.jpg

Solutions & Supports: Demographic

Customer Profile

Gender female

Age

18-28

Occupation

students (high school seniors or college), young professionals, and young wives

Income

on allowance, household income around $50,000;

monthly disposable income $1,500

Geography

urban cities (i.e. New York City, Los Angeles, Tokyo)

Lifestyle

love shopping, interested in fashion and trends, having or planning to have a profession, lives in metropolitan areas, goes to party occasionally

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Solutions & Supports: Demographic

Customer Profile: Geography

London New York

Tokyo

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Solutions & Supports: Demographic

Persona A Gender female

Age 22

Occupation Senior College Student

Income Allowance from parents: $1000 Part-time job: $1500

monthly disposable income (after rent, utilities, food and necessities) $500

Geography New York

Lifestyle http://www.flickr.com/photos/23726395@N02/2386101969/

A senior student in FIT majoring fashion design. Parents are not paying for the tuition but pays a portion of monthly spending. On student loan and scholarship. Spends most of monthly spending for buying garments and materials. Very interested in fashion but can’t afford designer brands. Just got an internship in Prada. Looking for a job and needs to stand on her own after graduation.

Scenario A is a senior student who goes to a fashion school in New York. She currently got an internship at a luxury fashion brand. Her everyday style does not fit to the brand image and dress code of the company that she interns, so she decided to buy some clothes that are appropriate for the internship. She had to buy clothes that works for her internship. Since she did not have enough funds she bought lower priced stuis with inferior quality. When the internship was over, the stuis were all worn out so she got rid of them.

Scenario of Storyboard 2 (page 11)

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Gender http://i.treehugger.com/images/2007/10/24/Fair_Fashion.jpg

Solutions & Supports: Demographic

Persona B female

Age 19

Occupation Freshman College Student

Income on allowance; about $5000/mo. + parent’s crendit card

monthly disposable income (after rent, utilities, food and necessities) $3500 + @

Geography New York

Lifestyle Just moved to New York from LA for college. Majoring in violin. Interested in fashion.

Subscribe fashion magazines (Vogue, Marie Claire, W, and more). Visit style.com and other fashion trend websites often. Often goes to shopping with friends. Living in a school housing (mendatory for freshman student). Recieving monthly allowance. Parenets are paying for rent, food, necessities, and school materials.

Scenario B just came to New York from LA, where a lot more space than NY is available. She loved the new shops in Soho , designer flagship stores in fifthavenue, and department store such as Bloomingdale’s, Barneys, and Saks. She shopped, shopped and shopped because she needs a new look for a new lifestyle. However, right after a month, her tiny closet cannot fit anymore dresses she bought. She started to leave her bags and shoes on the floor and after another month, her roomate cried she can’t live with a mass anymore. Now B is looking for a storate space to keep her clothing and bags untill she can get her own place. *This is a written scenario of Storyboard 1 (page 10)

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I really love shopping

http://i.treehugger.com/images/2007/10/24/Fair_Fashion.jpg

I love shopping

www.flickr.com

www.flickr.com

Project Direction: Demographic

Storyboard: “I need a bigger closet” 1 of 2

But I live in New York

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And I got an internship at CHANEL! ;)

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A scene from “너는펫”

This is what I wear

http://www.chanel.com

http://www.urbanoutfitters.com/urban/index.jsp

Project Direction: Demographic

Storyboard: “Urban outfitters to Chanel” 2 of 2

What the he** am I suppose to wear?!

Project Direction: Financial Plans Income Statement 2011-2012

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Project Direction: Financial Plans Cash flow Projection 2011-2012

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Bibliography

Global fashion industry growth in emerging markets Grail Research LLC

Avelle: Bag borrow or steal www.bagborroworsteal.com

RTR: Rent the Runway www.renttherunway.com

Nation Master http://www.nationmaster.coms

Images http://www.zipcar.com/ http://www.kia.com http://i.treehugger.com/images/2007/10/24/Fair_Fashion.jpg http://kenosisdown2earth.files.wordpress.com/2008/01/maslows_ hierarchy_of_needs.png http://www.viewpoints.com/images/ review/2007/162/22/1181619211-15927_full.jpg Screenshot from http://www.Shopbop.com Screenshot from http://ww.Ebay.com AVELLE logo: https://www.bagborroworsteal.com Men’s Wearhouse logo: www.menswearhouse.com RTR logo: http://www.renttherunway.com/ Gucci’s Icon bag. Courtesy Photo Tommy Hilfiger official website Tory Burch official website http://images.inmagine.com/img/zefarf/crzs005/crzs005001.jpg http://www.traderscity.com/board/userpix19/18956-residential-glasselevator-1.jpg http://www.apartmenttherapy.com/uimages/chicago/2-19-08closet7.jpg Barneys Window Display Barneys.com http://images.inmagine.com/img/zefarf/crzs005/crzs005001.jpg http://farm4.static.flickr.com/3061/2370495222_eca3947627.jpg http://www.wornthrough.com/blog/wp-content/uploads/2010/02/ moving-into-compact-storage.jpg http://www.homelement.com/images/1386-Dresser-Mirror.jpg http://www.flickr.com/photos/postgreen/2437963771/sizes/o/

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Appendix

1. Poster 2. Postcard 3. CD [PDF files of book & presentation]

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Poster

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Postcard

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CD

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