Professor Cannata Retail Management FASM 410 Winter 2016
Charlytte Morrone
Isabella Yidi
Mi’Kiera Graham-Young
Sami Bailey
EXECUTIVE SUMMARY Building a pop up shop for ASOS in Miami, FL during Art Basel will create more recognition to the UK brand. The goal of the shop is to increase sales and awareness of ASOS’s private label brand. Even though the pop up will lose more than $12 thousand during their four days the exposure gained by the traffic of Art Basel, they will see a profit in the following year.
COMPANY HISTORY I n J u n e 2 0 0 0 , N i c k Robertson and Quentin Griffiths formally founded Asos, As Seen On Screen Ltd. In 2001, ASOS was launched on the London Stock Exchange’s alternative investment market. ASOS’ first own-label collection for women was introduced in 2003. The company hit a milestone of having one million unique visitors on ASOS.com.
The company launched its own magazine in 2007 and also moved to new headquarters i n C amden, nort h London. In 2010, ASOS Marketplace was introduced where customers could shop directly from their favorite independent lab el s and v i nt age boutiques. In 2011, ASOS went multi-channel, multi-lingual and 100% screen agnostic. They brought the launch of the ASOS iPhone and IPad application making it more convenient for customers to shop. Expanding internationally, ASOS opened international offices in New York, Lille, Berlin, and Shanghai.
In 2014, they expanded their Barnsley warehouse to hold 20 million units and opened their first European warehouse in Berlin. ASOS would like to keep updating their technology to handle different character sets, which will allow them to talk to 90% of the world’s potential customers in their own language. ASOS’s website attracts 114 million visits per month and as of December 31, 2015 had 10.7 million active customers 4.2 million of which were located in the UK and 6.5 million located in international territories.
TO BECOME THE WORLD’S
NO.1
ONLINE FASHION DESTINATION
FOR 20 SOMETHINGS
SWOT ANALYSIS STR ENGTHS
-No credit allows the company to benefit from the immediate profit -Multi-channel marketing strategy -Extensive product ranges -Best-in-class service; continuously finding new ways to enhance the customer experience
OPPORTUNITIES
-Enhance digitization on their website, by creating a digital broadcast of a runway show for customers to zoom in on the fabrics and see how the clothes move. -Incorporate offline advertising -E-commerce is globally expanding -Expansion of their ASOS app. It is currently only in the UK and Denmark
WEAKNESSES
-E-Commerce only -Logistics and costing related to production overseas -Shipping and return costs for the company
THR EATS
-The decreasing value of exchange rates, such as the Australian dollar (slowed sales growth) -International Trading Conditions
BRAND AS A PERSON -Twenty-something fashion lovers -Trendy -Inspired by celebrities, media, and pop culture -Avid consumer -Prefer affordable and accessible products -Expect equal or better quality than competitors
BRAND AS AN PRODUCT
BRAND AS A SYMBOL
BRAND AS AN SYMBOL -UK based -International -E-commerce based -Technology driven -Best-in-class service -ASOS rewards -Collaborative
Bold Design Colorful Modern logo
Co-creation Youth
Innovative Reliable Social
Daring Liberal PHYSICAL
RELATIONSHIP
REFLECTION
PERSONALITY
CULTURE
SELFPROJECTION
Innovative Collaborative Personal Trendsetters UK Adventurous Artsy
I feel trendy I feel unique
CURRENT STATUS
Source: (ASOS)
COMPETITORS
CURRENT POSITIONING
RETAIL SALES
PRICING We rolled out our zonal pricing capability across all our local platforms, except Russia. This enabled us to price brands in line with local markets thereby enabling us to start offering more competitive local pricing and country-specific promotions.
PLANS FOR GROWTH ASOS is focusing on these regions for expansion: Britain, the US, Germany and France UK sales rose 27% while international sales were up 11% in 2015.
CURRENT DISTRIBUTION ASOS believes in providing fast, efficient delivery to their customers at affordable prices, and providing FREE delivery worldwide for any orders over $40. ASOS services over 200 countries worldwide. Asos distributes its products through its website as well as its mobile purchases. ASOS supports independent labels by providing ASOS Marketplace. ASOS Marketplace is a website that provides a platform for small businesses that want to sell their own label or vintage clothing. ***License: ASOS Marketplace does not claim ownership rights of members content. The ASOS warehouse in Barnsley, Yorkshire, is at the heart of their distribution operations.
ANNUAL SPENDING FIGURES $30.3 million for technology costs out of the $1,787.0 million total revenue in 2015. In 2015, Asos’s U.S. sales were up 43 percent. If you eliminate exchange rate effects, that’s 31 percent for the U.S. Asos invested $71 million in warehousing and technology during 2015 and is investing a further $113 million in the new financial year.
ADVERTISING ACTIVITIES ASOS website Shopping App + Magazine App -For iPhone & iPad/iPad Mini -For Android phone/tablet Apple watch app Mobile news website, ASOS Likes ASOS Magazine ASOS Marketplace Social Media
SOCIAL MEDIA PLATFORMS
x MIAMI
GOAL To increase sales in private label category
STRATEGY Open a pop-up shop in Miami during Art Basel in the month of December focusing on swimwear and accesories
TARGET CUSTOMERS MARIANA WILSON Age 28 Education: B.A in Journalism at NYU Resides in: New York City Career: Assitant Editor at Glamour Magazine Yearly Income: $55,000 Leisure Activities: Fashion blogging, pilates, vintage shopping, clubbing, Ultra Music Festival
RACHEL ALEXANDER Age 24 Education: Miami Ad School in San Francisco Resides in: London Career: Advertising junior copywriter at Grey London Yearly Income: $46,000 Leisure activities: Bargain hunter, yoga, gallery events, traveling
ANDREA FERNANDEZ Age: 20 Resides in: Miami Career: Digital marketing student at University of Miami Part-time Sales Associate at Nordstrom Yearly Income: $3,000 (Supported by parents) Leisure Activities: SoulCycle, running the Key Biscayne bridge, shopping, trying new trendy restaurants, hanging out with friends
BEHAVIORAL INFORMATION Uses of technology include social media such as instagram, twitter, facebook Use social media as a primary source to hear about products, special deals, and shopping news Embrace loyalty programs Price has the greatest influence on millennials’ purchase decisions above all other factors, including quality, brand, store and availability. 81% of Millennials are on Facebook
SWIMWEAR STATISTICS SWIMWEAR INDUSTRY STATISTICS
DATA
Global annual swimwear industry revenue $13.25 billion Annual US spending on women’s two-piece bathing suits
$8 billion
Average price for a woman’s bathing suit
$24.26
Average price for a men’s bathing suit
$15.62
Number of bathing suits owned by the average American woman
4
STATE OF FLORIDA Retail sales per capita (2007) $13,240 in Miami and $14,353 in Florida Clothing and Accessories Store Sales in Miami are $423,213,000 Florida retail sales during the 12 month period ending June 2014 totalled $6.1 billion
MIAMI AND ITS BEACHES AREA ATTRACTIONS INCLUDE: Ocean Drive Bayside Marketplace Vizcaya Museum and Gardens Parrot Jungle Island Deering Estate at Cutler Little Havana and Calle Ocho Perez Art Museum Miami Wynwood Walls
ESTIMATING COMPETITION Lincoln Road Mall South Florida’s premier outdoor shopping,
dining, and entertainment destination.
Sawgrass Mills Mall Florida’s largest retail centre Alchemist Gallery-like boutique with ultra-modern decor
offering designer clothing & accessories.
DIRECT COMPETITION By Revenue H&M - $21,366,580,000 Zara - $14,800,000,000 Gap - $16,435,000,000 Nordstrom - $14,437,000,000 Urban Outfitters - $3,323,100,000 Forever 21 - $1,050,000,000
DIFFERENTIAL
ADVANTAGE
Miami recieves around 70,000 visitors from around the world during Art basel weekend ASOS has a global presence which will increase foot traffic The warm weather in Miami during the season will attract tourists escaping the colder climates
STORE LOCATION WYNWOOD, MIAMI Trendy arts hub Contains over 70 galleries, museums and collections Drawing in thousands during Art Basel for its pop up parties and galleries and inspiring unusual collaborations between musicians, artists, graphic designers, commercial brands and all kinds of creative types
MEASURABLE
OBJECTIVES
Number of visitors to the pop-up shop Number of swimsuit units sold Increase likes and followers on social media Increase downloads on app
ENTRY MODE
New location launched in January of 2014 Infrastructure: Spaces range in price from $35-$40 sq ft and units start at 350 sq ft and up.
AREA FACTORS
Pedestrian Traffic: We anticipate a high amount of foot traffic due to the high tourist traffic during Art Basel. Transportation: Metro, Metrobus, Taxi, Uber Parking: Meter parking, Miami Parking Authority (40 NW 3rd St #1103, Miami, FL 33128)
SALES FORECAST
0.05
Percentage of Conversion from Foot Traffic to Foot Fall Day 1 Footfall Conversion % Footfall to Transaction Average Basket Total Revenue Cost of Goods Sold $ Per Product Category Women’s Swimwear Women’s Bags Women’s Cover Ups Women’s Scarves Women’s Sunglasses Women’s Flipflops Women’s Beach Towels Small Accessories Women’s Hats
0.02 Day 2
0.03 Day 3
0.02 Day 4
750 0.1
300 0.1
400 0.15
325 0.15
$143 $10,725 $3,218
$150 $4,500 $1,350
$200 $12,000 $3,600
$175 $8,531 $2,559
Day 1
Day 2
$3,218 $536 $2,681 $536 $1,073 $536 $1,073 $536 $536
Day 3
$1,350 $225 $1,125 $225 $450 $225 $450 $225 $225
Day 4
$3,600 $600 $3,000 $600 $1,200 $600 $1,200 $600 $600
$2,559 $427 $2,133 $427 $853 $427 $853 $427 $427
STORE INSPIRATION
STORE LAYOUT
Product Category
Average Price
Average Units Per Day
Day 1
Day 2
Day 3
Day 4
Women’s Swimwear
$60
54
23
60
43
Women’s Bags
$50
11
5
12
9
Women’s Cover Ups
$51
53
22
59
42
Women’s Scarves
$21
26
11
29
20
Women’s Sunglasses
$21
51
21
57
41
Women’s Flipflops
$21
26
11
29
20
Women’s Beach Towels
$55
20
8
22
16
Small Accessories
$18
30
13
33
24
Women’s Hats
$34
16
7
13
13
COSTING Human Resources
Total
Hourly Pay
Total
Store Manager
$31.44/hr
$1,131.84
Managers (2)
$19.04/hr
$685.44
Merchandiser
$31.11/hr
$1,119.96
Sales Associates (6)
$10.00/hr
$960 $4,582.68
Fixtures
Total
Tables (2)
$180
Clothing Racks (2)
$196
Mannequins (3)
$417
Shelving (3)
$45
Hangers (900)
$1,980
Wall Hooks (4)
$16
iPod Touch (“Registers”) (4)
$796
Office/Cleaning Supplies
$100
Projector
$299.99
Projector Screen
$199.99
Total
$4,229.98
PROMOTION
Photobooth located outside of Art Basel to promote to shop
Signage located in Lincoln Road Mall
Advertisment for ASOS Magazine
FINANCIAL PLAN Net Sales
$35,756.00
Cost of Goods Sold
$10,727.00
Gross Margin
$25,029.00
Expenses
$37,973.99
Profit/Loss
Rent + Utilities
$4,533.33
Legal Fees
$170.00
Human Resources
$4,582.68
Fixtures + Furniture
$4,229.98
Promotional Plan
$24,458.00 -$12,944.99
IN CONCLUSION Our initiative is to see the future potential ASOS has to open its first brick-and-mortar location Through the pop up shop, we aim to raise awareness of ASOS private label brand