FASM 245 Professor Daniel Green Winter 2016 Opening Ceremony Buying Team: Jordan Dabney Lo Pitcairn Ardeen Samuel Amanda Liffers Rylie Healy
Table of Contents -Brand History -Mission Statement -Size & Scope - OC & Innovation -Opening Ceremony Locations -Social Media -Collaborations -Target Customer Profiles -Strategies for growth -SWOT analysis -Product Category -Current Lifestyle Trends -Corporate Buying Plan -Assortment Plan
Brand History Opening Ceremony was founded in 2002 by two college friends, Carol Lim and Humberto Leon, as a place to share their passions for travel, art, and fashion. Inspired by a trip to Hong Kong, they left their jobs in corporate fashion to realize their unique dream, inspired by the inclusive principles of the Olympic Games.
Mission Statement Taking its name and mission statement from the modern Olympic Games, Opening Ceremony adopts a multinational approach to retail. In addition to stocking both iconic and emerging homegrown designers, every year Opening Ceremony showcases the spirit and merchandise of a visiting country, transforming each store into a marketplace for exotic souvenirs and international talent.
Size and Scope
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Four brick-and-mortar stores E-commerce Showroom located in New York Shipping to 40 countries
Opening Ceremony and Innovation Opening Ceremony is a unique retailer. They are very innovative in everything they do. They follow the trends and carry unique items from around the world that create that universal feel. Another innovation is their pricing for products. They can carry a t-shirt for $35 or a gown for $3,500. They would rather have great pieces than focus on a certain price point. They are also innovative with their brick-and-mortar stores; they create a different and unique experience for the customer.
Opening Ceremony Locations
New York
Los Angeles
Tokyo
Ace Hotel
Social Media Outlets
Social Media Outlets Opening Ceremony is highly involved with social media. Their platforms include Facebook, Twitter, Instagram, Tumblr, and the Opening Ceremony blog. They use social media to connect with their customers and to update them in recent trends and what’s new with the company.
Collaborations
Collaborations Opening Ceremony has had numerous amounts of collaborations since being established in 2002. In 2009, the brand has collaborated with American brand, Pendleton. The classic wool shirt patterns and Native American designs with the fashion forward mindset of Opening Ceremony gave a fresh authentic energy to the collection. Rodarte sisters Kate and Laura Mulleavy, linked up with OC in 2011 to create a Scandinavian dream inspired sequence that was designed for both men and women. Known for their utilitarian work boots, Timberland, in their second collaboration with OC debuted two new styles in winter 2013-- the roll top boots and convenience boots. So it was only matter of time before they would be developing their own footwear line.
Target Customer
Alexa Lewis 28 Graduated from Parsons Assistant Editor and Chief at Paper Magazine Income $100,000-$150,000 Single Open minded Independent Creative Will sacrifice things to have exactly what she wants Mature Loves to travel and experience different cultures
Dan Blackwell 29 Graduated from NYU Freelance fashion photographer Income $80,000-$90,000 Single Individual Quite and reserved Internalizes things Into craft coffee Loves local breweries Would rather be in the mountains, but his job keeps him in the city Dog lover
Strategies for Growth Amplify e-commerce capabilities and fashion collection Expand its retail presence with mono-brand and multi-brand stores Enhance women’s, men’s, and accessories collections More brick and mortar stores around the US as well as internationally
SWOT Analysis
Strengths Features many designers Four brick and mortar stores create a special shopping experience Large target audience Highly involved with social media Focus on innovation rather than pricing Many collaborations with other designers Keep up with the most current trends
Weaknesses Only have four brick and mortar stores Online inventory is limited Women’s department is bigger than the men’s department The products available come in limited quantities Gift cards can only be used in the way they were purchased
Opportunities More stores throughout the US as well as internationally More online inventory More collaborations to promote designers New ways of promotion Creating an Opening Ceremony App
Threats Lower priced retailers with similar items such as H&M and Forever 21 Decline in the Asian market
Product Category
UNISEX FOOTWEAR “Today, looks that work for him, often work for her” (footwearnews.com)
Luxurious Loafers
Luxurious loafers are a great unisex shoe. They’re stylish for both men and women. The loafers shown above from Acne Studios are the perfect example of the trend. They come in every color and texture, like leather or suede.
Cleated Soles
Cleated soles are the next trend we are following. Cleated soles can be added to any shoe, like a boot, sandal, or every a luxurios loafer. These cleated soled shoes from Moschino show just that.
Work Boot
The third trend we are following is the work boot. The work boot adds comfort and stabilty to your everyday boot. Dr. Marten has amazing styles and colors of the trend.
Chelsea Boot
The fourth trend is the Chelsea boot. These boots also add comfort to your everyday boot. They come in an aray of colors and materials, like the ones pictured from Mansur Gavriel.
Slimline Runner
The slimline runner is our final trend. It is an amazing and comfy trend. It also follows the atheisure trend that is so popular. The slimline runner comes in many different styles like the ones pictured from Vans, Puma, and New Balance.
Current Lifestyle Trends
Technology
Technology has advanced over the past few years and has finally reached footwear. Technology within footwear started when we were able to customize our shoes from anywhere, this has vastly expanded. Other technologies include specific shapes for support to different parts of the foot, cushioned soles for high impact, etc.
Athleisure
Athleisure has finally taken off. What began as a little New Years resolution is now a full blown trend, from working out to be healthier to just having the look because it’s comfortable, cute and easy to switch from day to night without much effort.
Corporate Buying Plan
Corporate Plan FALL 2016 Plan Net Sales, Fall 2016: 517.5 Est. Net Sales, Fall 2015: 450.0 Plan % Last Year: 15.00% Average Stock, Retail: 211.2 Inventory Turnover: 2.5 Planned Reductions, $: 129.4 Reductions % Sales: 25.00% Plan IMU%: 59.32%
AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FALL 2016
NET SALES: 62.1 88.0 72.5 103.5 129.4 62.1 517.5 % FALL: 12% 17% 14% 20% 25% 12% 100% PLAN BOM STOCK: 186.3 219.9 202.9 238.1 258.8 186.3 211.2 STOCK/SALES RATIO: 3.0 2.5 2.8 2.3 2.0 3.0 PLAN EOM STOCK: 219.9 202.9 238.1 258.8 186.3 186.3 PLAN REDUCTIONS: 19.4 23.3 19.4 23.3 24.6 19.4 129.4 % FALL: 15.0% 18.0% 15.0% 18.0% 19.0% 15.0% 100% PURCHASES , RETAIL: 115.1 94.2 127.0 147.5 81.5 81.5 646.9 PURCHASES, COST: 46.8 38.3 51.7 60.0 33.2 33.2 263.1
Corporate Plan - Net sales are planned at $517,500, most of this comes from the New York and Los Angeles store as they are the powerhouse stores of the Company - Increases are planned at 15% because of the constant changing Trends, as well as growth in the footwear category - An inventory turn of 2.5 allows for new receipts to come in steadily - Markdowns are at 25% because of how fashion forward the company is, new items need to come in constantly - An initial mark up of 59.32% covers high markdowns
New York Buying Plan
New York FALL 2016 Plan Net Sales, Fall 2016: 285.0 Est. Net Sales, Fall 2015: 247.8 Plan % Last Year: 15.01% Average Stock, Retail: 105.7 Inventory Turnover: 2.7 Planned Reductions, $: 71.3 Reductions % Sales: 25.00% Plan IMU%: 59.32%
AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FALL 2016
NET SALES: 34.2 48.5 39.9 57.0 71.3 34.2 285.0 % FALL: 12% 17% 14% 20% 25% 12% 100% PLAN BOM STOCK: 95.76 111.4 103.7 119.7 135.4 88.9 105.7 STOCK/SALES RATIO: 2.8 2.3 2.6 2.1 1.9 2.6 PLAN EOM STOCK: 111.4 103.7 119.7 135.4 88.9 85.0 PLAN REDUCTIONS: 19.4 23.3 19.4 23.3 24.6 19.4 71.3 % FALL: 15.0% 18.0% 15.0% 18.0% 19.0% 15.0% 100% PURCHASES , RETAIL: 69.3 64.0 75.3 96.0 49.4 49.7 403.6 PURCHASES, COST: 28.2 26.1 30.6 39.0 20.1 20.2 164.2
New York - Net sales are planned at $285,000. This is because New York is the power house stores, it sees the most traffic and is the original store. -Increase, remains at 15% -Turnover rate is at 2.7 As the main store New York has to be the store that Constantly changes inventory. This store has the ability for designers to sell at a faster rate and get their name out there as it has that international advantage with people from all over passing through. -Markdowns and Initial markup remain the same as they mirror the corporate plan.
Los Angeles Buying Plan
Los Angeles FALL 2016 Plan Net Sales, Fall 2016: 207.0 Est. Net Sales, Fall 2015: 180.0 Plan % Last Year: 15.00% Average Stock, Retail: 84.5 Inventory Turnover: 2.5 Planned Reductions, $: 51.8 Reductions % Sales: 25.00% Plan IMU%: 59.32%
AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FALL 2016
NET SALES: 24.8 35.2 29.0 41.4 51.8 24.8 207.0 % FALL: 12% 17% 14% 20% 25% 12% 100% PLAN BOM STOCK: 74.52 88.0 81.1 95.2 103.5 74.5 84.5 STOCK/SALES RATIO: 3.0 2.5 2.8 2.3 2.0 3.0 PLAN EOM STOCK: 88.0 81.1 95.2 103.5 74.5 74.5 PLAN REDUCTIONS: 7.8 9.3 7.8 9.3 9.8 7.8 51.8 % FALL: 15.0% 18.0% 15.0% 18.0% 19.0% 15.0% 100% PURCHASES , RETAIL: 46.1 37.7 50.8 59.0 32.6 32.6 258.7 PURCHASES, COST: 18.7 15.3 20.7 24.0 13.3 13.3 105.3
Los Angeles - Net sales are planned at $207,000. This is because Los Angeles is the Second biggest store, it sees similar traffic to the New York store but not as much. -Increase, remains at 15% -Turnover rate is at 2.5 This is because Los Angeles is still a very big store as well as a major contribution to Opening Ceremony. A 2.5 turn here is still fast and allows a steady flow of receipts as well as new items, just a little Slower than New York -Markdowns and Initial markup remain the same as they mirror the corporate Plan.
Assortment Plan
Assortment Plan Focus Product Category: Opening Ceremony Designer Footwear Planned Purchases at Retail: $285,000.00
DESIGNER TOTAL PURCHASES
STYLE TOTAL PURCHASES
Acne 25% $71,250 Adidas Originals 5% $14,250 Dr. Martens 4% $11,400 Fenty Puma x Rihanna 14% $39,900 Kanye West x Adidas 15% $42, 750 Mansur Gavriel 20% $57, 000 Moschino 3% $8, 550 New Balance 4% $11,400 Reebok 5% $14,250 Vans 5% $14,250 100% $285,000.00
Cleated Soles Slimline Runner Chelsea Boot Work Boot Luxurious Loafers
5%
$14,250
25%
$71,250
30% 10%
$85,500 $28,500
30% 100%
$85,500 $285,000
Assortment Plan Opening Ceremony as a company has a wide variety of designers which contribute to the overall inventory. After taking into consideration all of the designers it has been narrowed down to the designers who we believe are the top trending and in high demand right now. The chart demonstrates the percentages of what will be purchased from the designer, we specifically chose these in believing it is what the consumer wants based off the current trends.
Thank you from the Opening Ceremony Buying Team 2016!