Econscious final project by SKUK

where fashion & people flourish together

School of Art and Design

Fashion Marketing & Branding

This submission is the result of my own work. All help and advice other than that received from tutors has been acknowledged and primary and secondary sources of information have been properly attributed. Should this statement prove to be untrue I recognise the right and duty of the board of examiners to recommend what action should be taken in line with the University's regulations on assessment contained in its handbook. signed .............................................................. print name ……………………………………………………………….. date .................................................................

acknowledgements. I would like to thank my supervisors Mel Robinson, Naomi Braithwaite and my tutor Suzanne Winfield for your patience and understanding throughout this whole process. Your professional guidance, much needed support and advice has been highly valuable for writing this paper. I would also like to acknowledge my friends and family who have been my emotional support system from beginning to end of this experience.

By Sedi Kukwikila N0510955 Word Count: 7986

INTRODUCTION.

M A R K E T S I T UAT I O N .

C O M P E T I T O R A NA LYS I S .

T H E O P P O RT U N I T Y.

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T H E B R A N D AU D I T.

THE BUSINESS MODEL.

T H E S E RV I C E .

T H E M A R K E T S T R AT E G Y.

C O M M U N I C AT I O N P L A N .

B R A N D M A NAG E M E N T.

F I NA N C IA L S .

APPENDIX.

INTRODUCTION.

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p u r p o s e o f s t u d y. The combination of empirical primary data and secondary research will aid and support the analysis of the current market health within the fashion industry. The research will be used to develop a business model that will increase awareness amongst millennials surrounding the ethical issues within the fast fashion industry, in order to promote sustainability. Stage one explored the ethics surrounding fast fashion and focused on consumer perceptions towards the topic. The purpose of this paper is to implement the recommendations that stemmed from the stage one, to develop a business idea feasible for the current UK consumer.

introduction. Throughout stage one extensive analysis of the fashion industry was made, focusing particularly on fast fashion. Ethical issues surrounding the fashion industry have regularly been highlighted in the media. This being social and environmental issues like child labour exploitation, oversee low wage system and the overuse of natural resources. There are many global issues which are feeding the way consumers choose to live their lives (Rose, 2015). Stage one highlighted that millennials are influenced by brands but are lacking awareness of these issues. The fashion industry is being forced to change in order to lead a more sustainable future. The production to the consumption has to be re-valuated (Rose, 2015). The internet has allowed for consumers to be able to access information at a much faster rate than ever before meaning that the importance of brand transparency is crucial (Rose, 2015). In an era where fashion is being delivered at a fast rate, consumers are adapting alongside of this and now seek cheap, convenient, fast fashion (Rose, 2015). But this process has to be slowed down to preserve people and the planet.

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s t a g e o n e o v e r v i e w.

Stage one provided an understanding of consumer perceptions towards fast fashion. Also, whether buying behaviours are affected by the social and environmental issues fast fashion causes. The mixture of both primary and secondary research highlighted that baby boomers (born between 1946 –1964) are sensitive to the social and environmental implications fast fashion is having, causing them to shop cautiously. However, in contrast it was made evident that millennials (born between 1980 –2000) are less knowledgeable on the issues surrounding fast fashion therefore shop sporadically, mainly in search for value clothing. Primary research highlighted that millennials are demanding more from brands in terms of transparency, personalised products and communication strategies. The focus groups conducted revealed that millennials would be encouraged to shop consciously if fast fashion brands were more engaging and transparent with their brands. The key insights taken from stage one are: 1. Millennials will lead a more sustainable future if brands become more transparent. 2. The ‘old fashioned’ stigma attached to sustainable clothing has meant millennials are not attracted to eco-friendly driven brands. 3. The taste for cheap, disposable fashion has fed into ethics being ranked of low importance to consumers when shopping.

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s t a g e o n e o v e r v i e w. There were two main recommendations that concluded from stage one for realisation in stage two. The first recommendation was creating an online sustainable fashion brand targeted towards millennials that would be 100% transparent. However, according to primary research respondents stated that they are not attracted to clothing deemed eco-friendly and they attached to sustainable clothing with words such as ‘old fashioned’ and ‘unfashionable’. The second recommendation was to provide an online service targeted towards millennials which would aid in tackling the lack of knowledge amongst this generation to promote sustainability. The service will provide information on the manufactoring of clothing bought from fast fashion brands. Both ideas require intensive research in order to clarify the feasibility of the concept along with assessing the viability with current consumers within the UK.

research aims & objectives. To implement a new business strategy, tackling this issue requires additional research to be conducted. The research objectives are to: • Collect a census of 100 respondents in an online survey that analyses consumer’s appetite towards the business idea generated from the stage one. • Conduct industry interviews distinguishing if there is a business appetite for the generated business idea. Also, to gain financial research from existing businesses that can be used as an estimate for the stage two business plans. • Collate secondary research on the current state of the fashion industry to identity gaps in the market. • Conduct numerous focus groups to gain consumer perceptions on the business idea to validate feasibility with UK consumers.

m e t h o d o l o g y. For stage two clear research and analysis of the market along with further consumer research will be conducted and used to produce a business plan, marketing and communication strategy. A theoretical background of study will be undertaken considering relevant macro, micro and consumer trends. This will be explored in chapter 4 and will dive deep into the current mega trends that are affecting the industry and consumer buying behaviours. Alongside of this, primary consumer research and industry insights were collated testing the viability of the business idea. Using primary and secondary research, chapter 5, 6 and 7 will discuss brand image, implementation and strategy. Lastly, chapters 8, 9 and 10 explains the communications, financials and future of the business.

primar y research. Survey A total of 100 responses was recieved through an online survey made for a broad collation of beliefs, attitudes and opinions, informing the feasibility of the business idea and identifying the consumer need. This method was administered remotely making it useful to reach hard-to-access consumers. Open ended, closed multiple choice questions were asked to obtain both basic and complex analysis to aid the research. Some questions being closed ended limited the depth of the responses. So to overcome this limitation focus groups were conducted to gain further insight. Focus groups A focus group of 5 participants was undertaken and then used to validate the business idea and brand image. The interaction between the researcher and respondents made for a relaxed environment allowing for in depth responses and probing questions to be asked. Not only were verbal responses beneficial but the body language of the respondents was also taken into account. The focus groups were used to test the initial business idea, communication strategy and overall brand image. The consumer insights were beneficial in the development of the brand. Industry expert Interviews were undertaken with industry experts in order to gain an understanding of the current state of the market, consumer and industry needs. The following were interviewed: Stella Claxton (Sustainable fashion expert) People Tree Representative Soil Association Representative

secondar y research. To set the backdrop, extensive secondary data was collected and used as a starting point for research. A wide range of sources were used for example book, reports, articles, films, newspapers and websites. The sources that were used provided both basic and complex knowledge on the fast fashion industry.

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where fashion & people flourish together

refined concept. ECONCIOUS Ltd is a business to business (B2B) start-up company focused on encouraging brand transparency. ECONCIOUS Ltd is designed to aid in building enduring relationships between fashion brands and their consumers whilst generating economic growth. This will be accomplished by allowing brands and businesses to subscribe to ECONCIOUS Ltd under licensing to receive the ‘ECONCIOUS Ltd stamp of approval’ (ESA) certifying the business/brands promising there ethical commitment (The brands will be called licensees). In addition, there will be business to consumer (B2B) features whereby consumers are able to receive information on the brands that are leading a sustainable future. The key feature of the business will be brands receiving the ESA which will be featured on brand/business website, in store locations and shopping bags, certifying their contribution to sustainability. The second feature is the ECONCIOUS Ltd B2C app. This will provide consumers with information on certified brands and will have direct links to their websites. ECONCIOUS Ltd will generate revenue through having a subscription fee for brands and businesses. The validation process for brands will be covered by ECONCIOUS Ltd and a percentage of the profit made will be reinvested in charitable organisations focusing on sustainability. This will require gaining a mass client list as this will derive the majority of ECONCIOUS Ltd.’s capital. The B2C feature app will be free to join and will generate revenue through advertising sales making it imperative to build a mass user following.

M A R K E T S I T UAT I O N .

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market over view : the fashion industr y The fashion industry is the selling of apparel which includes womenswear, menswear, kids wear, accessories and footwear. The clothing and footwear market is forecasted to rise £12.4bn between 2015 and 2020. Womenswear dominates that apparel industry with a market share of 49% according to Mintel reports. However, the growth of menswear has meant the category is the second largest sector with a share of 26% (Mintel, 2015). Menswear will drive the market with retailers responding to men taking greater interest in trends and style. With higher disposable income consumers are more confident in spending money and retailers are investing in newness, encouraging more frequent purchases (Purvis, 2015). For ECONSCIOUS Ltd the market is very attractive as the higher levels of disposable income means that consumers are likely to spend more. It is predicted that the overall clothing and accessories market will grow to £63.3bn by 2018 (Purvis, 2015).

market over view : sustainable clothing The fashion industry has been at the frontier in creating genuine change in looking after the planet by championing social and humanitarian concerns (Rose, C. 2015). The controversial film ‘The True Cost’ exposed the use of sweatshops in third world countries and poor manufacturing processes undertaken by fashion brands. This highlighted that the industry was in need of tremendous change (Rose, C. 2015). However, sustainable fashion does not come without its challenges. With an industry solely based on image, the environmental and social issues fashion causes are overlooked in order to attract mass consumption. This offers ECONSCIOUS Ltd a big opportunity to penetrate this market. With the influx of sustainable fashion brands, the market is increasingly saturated making it difficult for new entrants. However, with ECONSCIOUS Ltd.’s USP (being fashion certification) makes it an attractive market to operate in. The ethical fashion market is worth £43.2bn in 2013 and has grown 18% over the last 2 years (Ethical forum, 2014). This highlights consumer’s interest in buying into green products and services, they are putting more emphasis on sustainability. The clear consumer appetite for sustainable products highlights the huge potential for ECONSCIOUS Ltd.

rise in value clothing Value clothing brands like Primark and supermarket clothing took approximately 28% of the clothing spend in 2014. This also includes fast fashion value brands such as New Look and H&M (Mintel, 2015). Young female consumers (between 18-24) are driven by sales and special offers when shopping for new clothes and have become accustomed to discount culture (Mintel, 2015). Youths would much rather wait for the discounted period of the retailing year than buy clothes full price. However, young men differ and show less interest in discounted clothing making them an attractive consumer base for retailers. Brands are able to focus on other factors that differentiate themselves from others such as design and quality of products (Mintel, 2015).

what motivates consumers to buy new clothing?

According to Mintel consumers prioritise spending on clothing than any other product. The total spend on clothing rose 6% in 2013 despite income being decreased and tax increasing. Consumerâ&#x20AC;&#x2122;s confidence in shopping has meant the sector has benefited with strong sale increases with 2014 seeing a 4.8% increase in spending (Mintel, 2015). Seasonal events Mintel carried out research on 942 male and females aged between 15-24, of which a third of these women purchased new clothes for seasonal events like parties and festivals. Consumers who shop at fast fashion brands are more likely to shop for events, over consumers who shop at department stores and premium fashion brands (Mintel, 2015). Key Analysis: Several brands capitalize on seasonal events like festival periods. For example online retailer ASOS have festival collections which feature apparel, accessories and footwear. This encourages consumers to not only buy apparel but other product ranges brands offer. Payday Opportunity Part-time employees are more likely to shop after payday moreover those in full time employment due to different commitments. Brands are now utilising pay day as marketing opportunities with various brands like River Island, Miss Guided and Pretty Little Thing capitalizing on this by holding fashion pay day events (Mintel, 2015). What does it mean for ECONCIOUS Ltd? Stage one primary research highlighted that consumers shop sporadically mainly for events. Mintel emphasizes similar insights stated above which mean the consumption of apparel and accessories has annual high trade periods. ECONSCIOUS Ltd will capitalize from this by marketing seasonal periods targeted towards millennials in order to generate the most traffic through the app.

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fashion market swot analysis. Strengths

Weaknesses

• Fashion industry is a multi-billion dollar industry • Poor economic power and great competition and continuing to grow and providing jobs for many. means many brands are likely to fail. • Top designers are collaborating with fast fashion retailers making designers goods more accessible to consumers. • The internet based advertising has meant brands can communicate with their consumers quicker than ever before.

• The UK apparel industry heavily rely on exports from foreign countries. • Consumers are wasteful of goods due to fast fashion promotion of ‘disposable consumption’.

Opportunity

Threats

• Quick development of technology means that brands can turn out products at a faster rate.

• Consumers are more demanding than ever before. It’s becoming increasing difficult for brands to adapt to their needs.

• Further opportunities means brands can operate overseas increasing their consumer base.

• Ongoing concerns about global social and environmental issues tarnishing the industry.

• Targeting millennials is beneficial with their strong buying power. • Volatile currencies make the apparel industry investments hard due to cost and revenues rapidly changing.

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certification ser vices. Certification services operate within the organic market which is said to be currently worth £1.95 billion with a 4.9% growth from 2015. The growth increase highlights consumers are buying into organic and the market being an attractive industry for businesses to operate in (Soil Association, 2015).

the future. If shopping remains a priority for consumers the apparel category will remain strong over the next five years. The growing economy will benefit the clothing sector however, as interest rates increase the forecasting years may potentially see weaker growth (Mintel, 2015). As previously stated the market is expected to grow 20% between 2015 and 2020 reaching £12.4bn. ‘While clothing remains a highly resilient category, it is also a mature sector that is becoming overcrowded.’ (Mintel, 2016). This suggests that competitors need to stand out from the crowd as consumers shopping expectations are rising. In a saturated market, creating a brand with no distinct point of differentiation is risky. But, with consumers becoming more confident the market is increasingly attractive for new businesses to penetrate.

C O M P E T I T O R A NA LYS I S .

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competitor analysis.

direct competitors. The direct competitors of ECONCIOUS Ltd are profit and non-profit organisations that offer similar functionalities of focusing on conservation of sustainable practices. For example, Fairtrade Foundation, Worldwide Fund of Nature, Forest Stewardship Foundation, Rainforest Alliance, UTZ Certified and Soil Association Certification. ECONCIOUS Ltd.â&#x20AC;&#x2122;s ethos is bringing awareness to brands who produce mindfully with protecting the worldâ&#x20AC;&#x2122;s natural resources and people living in developing countries.

indirect competitors. The indirect competitors of ECONCIOUS Ltd are sustainable fashion brands. For example, People Tree, Monsoon, Fat Face, Minna, Mirabelle and New balance. Brands whose value is slow fashion (an alternative to fast fashion) by making people and the planet central to what they do. These brand have gained a following based on the transparency they have with their consumers, therefore less likely to subscribe to ECONSCIOUS Ltd for certification. A disadvantage to this is consumers shopping directly at the brand rather than through ECONCIOUS Ltd.

p o s i t i o n i n g m a p.

This positioning map shows a clear gap in the market for ECONCIOUS Ltd to penetrate. Current competitors in the market focus of the sustainability surrounding social, wildlife and environmental issues. With ECONCIOUS Ltd being a fashion forward company this is beneficial and will make ECONSCIOUS Ltd a strong competitor within the saturated market. Additionally, the brands shown operate mainly on a B2C level apart from Forest Stewardship Foundation and UTZ Certified operating on both a B2B and B2C level. Again, there is a clear gap in the market for ECONCIOUS Ltd to operate on both levels increasing brand traffic on a consumer and business level.

competitor analysis: business model. COMPETITOR

STRENGTHS

WEAKNESSES

Forest Stewardship Foundation

• One of the leading services to • Been criticised for bad forestry promote forest management. practice which tarnished the • Strong brand image with over brand. 870 members. • Members of the council accused of malpractice.

Rainforest Alliance

• 500 company locations making • Accusations of green washing. the brand easily accessible. • Leaves producers in vulnerable • Providing jobs for over 6000 state as they do not offer employees guaranteed or minimum price.

Soil Association

• Strong brand image with over • Accused of adopting a 27,000 members corporate mindset in attempt • Certifies over 80% of organic to reach a larger audience. produce in the UK

Worldwide fund Of Nature

• World’s largest conservation • Criticism in the media for organisation with over 5 partnerships with major million supporters worldwide. corporations contradicting • Operates in over 100 countries. brand purpose.

Fairtrade Foundation

• The initiative represents • With the rise of value products over 1.2 million farmers and high cost of product is not workers attractive to consumers. • Fair-trade operates in over 58 • Practice has been criticised in countries. the media for farmers getting close to 0 in returns. • Certification deemed expensive for brands

UTZ Certified

• Label featured on 10,000 • Company does not pay products worldwide. marketing costs for logo • Widely accessible as practice causing weak brand image. operates in 116 countries. • Criticised for its lack of producer support.

competitive advantage. ECONCIOUS Ltd competitive advantage is that the service focuses on the sustainability within fashion brands. The service will operate in a niche that no other businesses occupy. Currently, companies that focus on conserving sustainable livelihood specialise in food, animals, textiles, nature and people. Additionally, no other businesses offer information based on the process whereby purchased clothing is manufactured.

market share. Soil Association certifies 80% of organic produce in the UK currently making it the leading organic certifier (Soil Association, 2016). With the array of specialised organic and non-organic clothing brands, ECONSCIOUS Ltd will affectively operate within both the clothing and organic produce market in hopes to gain significant market share.

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T H E O P P O RT U N I T Y.

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MARKET DRIVERS.

millennials drive sustainable consumption. Millennials are driving the shift of change. They will account for one third of the global spending by 2020 and have a £150bn buying power (Mintel, 2015). They will soon be the largest generation in history and have a different mind-set to previous generations. In the focus group undertaken all respondents stated they care about the environment and the affects fashion is having on the planet.

t e c h n o l o g y. As smartphone ownership increases consumers are becoming more accustomed to purchasing goods through tablets and phones (Mintel, 2015). Brands should utilise this and ensure that their websites are responsive and easy to use. Also, for businesses with limited finances, investing in free in store Wi-Fi is worthwhile as consumers may find it easy to purchase goods online rather than in store (Mintel, 2015). The digital age allows people to be much more connected and engaged with brands. This is beneficial for ECONSCIOUS Ltd as consumer now have more of a voice, debate issues and demand transparency - this being ECONSCIOUS Ltd.’s main purpose. According to research undertaken by trend reporter ‘Voxburner’ young consumers buy a majority of their clothing online. 971 consumers were interviewed and 28% of 16-24 use apps for online retailing at least once a fortnight and 36% said they have used high street retailer apps. Of those surveyed ASOS, Boohoo and New Look are retailers that are frequently visited online and within app (Macleod, 2014). This secondary data validates ECONSCIOUS Ltd.’s B2C concept being app based as millennials shop more on their smartphone than in brick and mortar stores.

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M E G A- T R E N D. s u s t a i n a b i l i t y. The conservation of natural resources and reduction of emission is top priority for many industries. A growing population demands greater protection of the world’s natural recourses in order to guarantee sustainable worldwide provision. The western world is becoming more aware with consumers contributing to sustainability being through purchasing products from the local region or buying into ECOnvenience (combination of ethical consumption and convenience) (Trendone, 2015).

M AC R O - T R E N D. r e - e c o n o my. By 2050, 7 million tonnes of waste will be thrown away daily. The only solution to this is ‘reuse, recycle, reduce’, where consumer goods are being up cycled into new products. Re- commerce is a characteristic of the trend reconomy in which products are bought, reconditioned and reintroduced into the market (Trendsone, 2015). Businesses are beginning to upcycle minimising the environmental impact textile waste has on the planet. For example, online retailer ASOS marketplace allows consumers to sell their unwanted goods to others promoting the reconomy movement. Similarly, there are many apps dedicated to this trend allowing consumers to swap, sell and upcycle clothing.

ethical consumption. Consumer’s decisions are made more consciously than ever before making it a status symbol. Products on offer are judged from a moral perspective that involves paying a higher price. Mintel research highlighted 41% (900 consumers surveyed) of consumers consider how ethical clothing or footwear is before purchasing (Bloomer, 2015). This highlights there is scope for ECONSCIOUS Ltd to promote themselves as socially responsible being there’s a clear market for ethical consumption.

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P E S T- E . Conducting a PESTLE analysis enables the identification of external factors that can affect ECONSCIOUS Ltd. The information will then inform the business strategy and the organisation of the business.

Political

ISSUE

IMPACT ON BUSINESS

• • • •

Rise in BRICs/ Next 11 countries The global apparel and footwear market is predicted to grow to 2 trillion dollars by 2018 (Fashion united, 2014). However, most of the industry’s growth is highly dependent on BRIC countries (Brazil, Russia, India and China) and runs the risk of being over reliant on them (Fashion United, 2014). BRIC countries generated over a quarter of the world apparel and footwear sale and are expected to grow over the next 5 years. But the vulnerability of the economy in Brazil and Russia means that sharing the market with western countries will be a challenge (Fashion United, 2014). This suggests gaining significant market share could be difficult for brands competing with BRICs.

Rise in BRICs The next 11 counties Government policies Effects of war

Effects of war International relationships could be affected due to the aftermath of wars. So ECONSCIOUS Ltd would have to abide by the rules and regulation of the countries they chose to operate in. Environmental

• • • •

Resource depletion Recycling considerations Biodiversity Current and future environmental legislation changes

Resource depletion “Shortfalls of water, energy, and food can sabotage economic and business growth as well as compromise social well-being.”-(Ott, 2015). The world’s population consumes the equivalent to 1.6 planets a year (Bloomer, 2015). According to the guardian this figure should only rise to two planets by 2030. Deforestation, soil erosion and the depletion of water are the causes of this deficit (Bloomer, 2015). With natural recourses depleting business will have to find an alternative, more sustainable way of production. This could be done through recycling, lowering of production and increase awareness of their carbon footprint. Current/Future legislations The current and future laws on environmental issues mean that ECONSCIOUS Ltd have to abide by laws made by the government. Ensuring the preservation of citizens, business and public authorities (European Commission, 2016).

Social/Cultural

• International/National inequalities • Gender equality • Human rights • Migration • Population growth • Urbanisation • Attitudes to the natural world • Working conditions

Human rights/Inequalities The living wage is said to be central to human rights in businesses. It allows for basic health, the purchasing if food and taking care of families (Bloomer, 2014). The fashion industry has been regularly criticised for the working conditions in oversee factories so governmental laws have been put in place to regulate the rights of garment workers (Bloomer, 2014). This means ECONSCIOUS Ltd should have explicit social responsibility to respect human rights throughout their supply chain (Bloomer, 2014). Higher wages for workers could mean higher productivity which is beneficial for brands. Urbanisation More people now live in cities than rural areas around the world. People are moving in search for economic opportunity, modern amenities and access to education (Purvis, 2015). Urbanised cities result in the competition for space, jobs, water and energy but saturated area lead in increase sales for localised businesses (Purvis, 2015).

Technological

• • • •

Social media Digitalisation Mobile web/Cloud surfing Manufacturing

Social media/Digitalisation A consumer can engage with brands without physical contact which has been made possible by the internet (Mintel, 2015). The Internet works especially well amongst millennials as of 2015 (according to a report made by Deloitte) 47% are influenced in their purchases by social media (Roesler, 2015). With ECONSCIOUS Ltd operating solely online, social media is something the business cannot afford to overlook as this provides quick access to consumer bases. Manufacturing As the advancement of technology continues, manufacturing is becoming more than creating physical product (Brown, 2015). The nature of the product and consumer demand is causing the shift in how companies run (Brown, 2015). Consumers demand personalisation and customisation which blurs the line between consumer and creator (Brown, 2015). Meaning that companies are able to work at a much smaller scale as innovation marketing models catering to specific consumer needs are catapulting.

P E S T- E .

Economical

• Transparency demands • Strength of consumer spending • Volatility in energy • Agriculture prices • Ease of loan access • Interest, inflation and unemployment

Transparency demands/ Consumer spending Since tragedy stuck in Bangladesh (2013) where thousands lost their lives when a garment factory collapsed, transparency is becoming a trend amongst consumers (Ethical fashion forum, 2013). Consumers are becoming increasingly aware of the effects fashion is having on the planet. Brands are now becoming more transparent building credibility and consumer loyalty (Ethical fashion forum, 2013). In the future transparency will be challenging for the fashion industry as it requires brand trust due to the exposing nature. But, nevertheless important as the trend becomes increasingly important to consumers. ‘Buying a mystery will be an absurd concept soon. There’s no luxury in a riddle.’ – Bruno Pieters Interest, Inflation & Unemployment Unemployment in the UK peaked at 2.7 million at the end of 2011after the severest recession in 2009 (BBC News online, 2015). The business environment is unpredictable and with consumers becoming more informed and diverse the fashion industry may not be free from financial adversity (Teo, 2009). With the rise in unemployment, the lavish spending of consumers may be replaced with the cautious consumer (Teo, 2009). Brands run the risk of falling into credit problems and filling for bankruptcy. This being said if ECONSCIOUS Ltd experienced this, negotiating partnerships with other brands or find investors to help financially would be beneficial (Teo, 2009).

BUSINESS APPETITE. EXPERT

INSIGHT

Stella Claxton (Expert on Sustainable fashion at Nottingham Trent University)

• Products have become progressively cheaper and the volume has gone up so that’s the biggest negative effect on the industry. The environmental implications are terrible. • The competiveness has driven the speed and put pressure of price which has raised the volume that is being sold. • Businesses are blaming consumers for demanding lower priced clothing but actually the businesses are responsible for trying to gain a competitive advantage by focusing on price and creating the desire. Consumers are constantly being bombarded with corporate messages. • Businesses have to engage with the implications of fast fashion as consumers are becoming more knowledgeable on the issues. • There is a gap in the market on engaging consumers with the issues that are happening in the fashion industry. Businesses have to identify the right way to do this as social issues is not an attractive part of the industry. Brands have to be engaging to make the consumer brand link mainstream.

See appendix 3.03

(Claxton, 2016) Soil Association representative (Soil association certification brand) See appendix 3.01

• With the way the fashion industry is moving at such a fast rate businesses need to take control of what they are producing. • It is up to the businesses to make a change whilst encouraging their consumer base to be more cautious. • We as a business have seen a change since certifying products from consumer feedback. So we know its working and consumers are becoming more aware. • The idea of fast fashion diminishing is unrealistic so brands should engage consumers to be more conscious. (Soil Association, 2016)

People tree associate (People tree – Eco-friendly fashion retailer) See appendix 3.0

• Since the tragedy in Bangladesh businesses have been forced to revaluate their business strategies • More and more sustainable fashion brands are coming into the market but it’s not for everyone • Fast fashion brands have high market share and should focus on implementing sustainable practices bringing awareness to the issues. • But the fashion industry is missing this. Consumers are not aware of how fashion can affect the planet and these needs to be addressed. (People Tree, 2016)

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analysis. There is a clear industry need for brands to engage with consumers in regards to the implications fast fashion is having on the planet. There is an opportunity for ECONCIOUS Ltd to penetrate the fashion market by offering the certification service that bridges the gap between consumer engagement and brand transparency. The insights provided by the industry experts verify the industry is lacking the consumer connection needed to better improve the industry. This, being in regards to sustainability and the preservation of future generations. All expertsâ&#x20AC;&#x2122; interviewed stated this change will only happen once brands accept the responsibility and work with consumers to do so. Brand transparency is long overdue from fast fashion brands as their manufacturing process can be difficult and not something that brands would want to share with their consumer. But, as consumers are becoming more knowledgeable about the issues it is inevitable this should be the next step for the industry.

consumer trends. The focus group consisting of 5 people between the ages of 18-23 was carried out in order to gain feedback on the refined concept. This allowed for further understanding of consumer opinions, buying behaviours and consumer needs. Gaining insights directly from the target consumer is beneficial in making improvements to the concept. TYPE

INSIGHT

Initial Survey (Concept Validation)

• Ethical collections in major clothing fast fashion brands seem unauthentic to consumers. • Consumers are witnessing a change in brands but do not understands the purpose of change • 84% of respondents stated that sustainability is not getting the media coverage it needs. • 90% of respondents believe there is a social need for more awareness surrounding the ethical issues within fashion. • 93% of respondents said that they are interested in ECONSCIOUS Ltd as a brand, stating there is a gap in the market for the service.

*See appendix 1.0-1.07

Focus Group 1 (Concept validation) *See appendix 2.0-2.05

Focus Group 2 (Brand presence) *See appendix 2.0-2.05

• The lack of media attention surrounding the effects of fast fashion has left millennials not caring about the issues. • Convenience is the driving force amongst millennials in regards to purchasing clothing. • Shopping within apps is becoming increasing popular than online. • Women’s biggest social concerns are child labour issues and depleting resources. • Millennials believe it’s the brands social duty to contribute to the well-being of the planet. • Consumers are influenced by the media but have not been made to care about conscious shopping. • Consumers believe there is a gap in the market for a service that encourages conscious living amongst millennials. • Millennials want to be informed on specific topics • A strong brand image is important to millennials, they shop at brands they trust. • Word of mouth advertising influence millennials sales • Incentives are a buying force for millennials. • Millennials communicate with brands via social media in regards to product query. • Apps are the most engaging platform for millennials, with consumers purchasing good through their smart device.

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idea validation. It is evident that both industry experts and consumers have highlighted the need for the ECONSCIOUS Ltd service. INSIGHT

CONCEPT REFINEMENT

Millennials (aged 18-34) want to be informed

According to both the online survey and focus groups a majority of consumer stated they want to be informed of fashion brands effect on the planet, fashion brands and their ethics and information on leading a sustainable life. This will feature on the app.

Incentives being a buying force for millennials *See appendix 2.06

ECONSCIOUS Ltd will offer rewards based on consumers buying behaviour. The more purchased through the app the more offerings the consumer will receive.

d e f i n i n g t h e c o n s u m e r. Consumer segmentation It is important in identifying the target consumer ensuring ECONCIOUS Ltd targets their specific needs and wants. Age: As previously stated in the stage one report, the aim is to target millennials (18-38). It was highlighted that they lack knowledge surrounding ethical issues within the fast fashion industry which causes them to shop sporadically. Gender: Fast fashion brands that are currently operating in the market target both men and women therefore ECONCIOUS Ltd will do the same. Location: The research is based on the UK consumer therefore being the most attractive market for ECONSCIOUS Ltd to operate in. Insights show the millennials communicate more online reinforcing ECONSCIOUS Ltd being an online based business.

c o n s u m e r b u y i n g b e h a v i o u r. Online presence According to Mintel reports millennials have the most buying power and the online platform, will interlink seamlessly with the internet savvy millennials (Mintel, 2015). Millennials are highly influenced by integrated shopping experiences and are utilising online channels to become smarter and better informed customers (Mintel, 2015). However, they expect to find the same information in regards to merchandise, pricing, discounts whether in-store, online or on mobile devices, making it a seamless shopping experience (Mintel, 2015). Loyalty Millennials being brand loyal in the current retail environment is becoming more difficult. According to Mintel brands having exceptional customer service whether in store or online is effective. In exchange for their loyalty consumer want a personalised experience in the form of discounts and promotions (Mintel, 2015). Consumers liked to be liked With Millennials always being on the go they are constantly connected to their smartphones (Mintel, 2015). Even though the relationship with brands on social media is purely transactional, brands need to be conversational in order to influence buying behaviour by offering promotional deals (Mintel, 2015).

...

fig. 13

...

fig. 13

analysis. In order for ECONCIOUS Ltd to provide a seamless experience constant interaction is necessary. ECONCIOUS Ltd have to be available at every touch point whether it is through social media, the app or online. This can only be done through integrating the operations so consumers can have an effortless journey from discovery of the service right through to maintenance and complaints. The behavioural analysis will aid the development of ECONCIOUS Ltd B2C marketing content as it is made easier what the consumers want to hear. The demographic analysis helps identify the most effective marketing channels by comparing the demographics of each channel. This will be further analysed in the communication plan (Chapter 6).

pen portrait. The ECONSCIOUS Ltd consumer is an adaptable, young ambitious being. They are stylish in regards to what they wear, where they go and what they listen too. Their core values are there friends and family and breaking away from societyâ&#x20AC;&#x2122;s norms whist having an interest in current affairs. They have the disposable income to enjoy their youthful life by engaging in personal activities like socialising, taking trips and purchasing digital devices. The ECONSCIOUS Ltd consumer shops both in store and online seeking convenience and high quality products. They turn to ENCONSCIOUS Ltd in order to be apart a movement that encourages change. This being a status symbol to them, they are consuming the products they love whilst being cautious to the planet.

fig. 14

industr y marketinng (B2B). With Soil Association being ECONSCIOUS Ltdâ&#x20AC;&#x2122;s main competitor a SWOT analysis was undertaken in order to understand Soil Associations strengths and weaknesses. This will give ECONSCIOUS Ltd the competitive advantage making sure the service is distinct by meeting that unmet consumer and business need. Also, using Soil Associations framework will highlight what issues that could potentially impact ECONSCIOUS Ltd as a new business.

swot analysis - soil association. STRENGTHS

WEAKNESSES

Certification Soil Association offer a large range of organic and sustainable certification schemes across food, farming, health and beauty, textiles and forestry. The soil association organic symbol is featured on 70% of organic products in the UK proving that the brands stamped operate on the highest standard of Financial Reliance sustainability. Soil Association is funded by consumer donations and business offerings. This not being a steady form Customer Trust of income for the business means that there are Soil Associationâ&#x20AC;&#x2122;s certification stamp is highly possibilities with the business not being able to fund recognisable due to the large exposure. The stamp is their outgoing their costs. trusted by consumers all over the country meaning that consumers are brand loyal to products that ECONSCIOUS Ltd will borrow the initial costs to feature the certification. start up the business from government investment. In order to guarantee the received investment avoiding Rise of organic potential to not raise the funds needed. The annual market report states there has been a 4% growth in organic produce bringing sales back from there decline in 2009 when the recession hit. The Soil Association certification increased by 8% and will only get better. The rise in the demand of organic produce means that increase in brands wanted to gain brand certification. OPPORTUNITY

THREATS

Oversee Expansion Currently, Soil Association is a UK based charity certifying UK based businesses and brands. Oversee expansion could see the association certifying more brands generating further income that could readily support future charitable endeavours. In reference to the PESTLE analysis above the BRIC markets means they are attractive locations to operate in.

Competitor Advantage Soil Associations biggest competitor is nonorganically sourced food, beauty, textile brands that are currently operating in the market. The fast fashion model attracts consumers due to the low pricing and wide accessibility of goods. Even with the rise in organic produce being sold people are high influenced by high street brands as they continue to hold the largest market share according to Mintel. This means Soil Association has to have a strong brand ethos to alter consumer buying behaviours away from non-organic brands.

T H E B R A N D AU D I T.

05 53

the brand audit. Mission ECONCIOUS Ltd aims to ensure sustainable livelihoods by delivering solutions through highlighting healthy, fashionable practices. Vision We envision a world where fashion, people and the planet flourish together. Promise We promise to offer our customers honest information to aid in leading more sustainable life. Values Our core values are our planet and preserving what Mother Nature has given to us. This guides us in fulfilling our mission and work towards attaining our vision.

corporate values. We promote businesses that value our planet and are making steps to bettering the world we live in. We offer a bespoke service for each brand by allocating a sustainability fashion expert who can offer a range of tips and advice to help the business grow. A percentage of the profits we make will fund charitable causes within the UK then eventually oversees.

brand essence.

THE BUSINESS MODEL.

06 57

... fig. 15

the business model. The ECONSCIOUS Ltd seal of approval aims to be a nationally recognised stamp of social, environmental, economic sustainability that helps both fashion brands and consumers do better for the planet.

licensees. In order for potential licensees to be certified, brands should submit their ethical trading strategy or annual report (on the improvement of workers conditions in their supply chain) to the ECONSCIOUS Ltd sustainable expert team. The submissions will be analysed ensuring the brands commitment to ethical trading. Once all documentation is validated brands can be certified and begin the alliance with ECONCIOUS Ltd into bettering their business whilst bettering the planet. During the first year of operation ECONCIOUS Ltd will approach brands that practice their corporate responsibility of ethical trading in order to become potential licensees. All certified licensees would have to comply by these areas outlined: • Demonstrate commitment to ethical trade • Integrate ethical trade into business model • Identifying problems in the supply chains • Ensuring suppliers improve on condition • Encourage sustainability practices to consumers *(Full list of potential licensees in appendix 4.0)

u s p. “We offer the nation better fashion that has been made to high standards of integrity, which have been independently assessed. We offer a wide database of fashion brands that are taking steps into bettering our planet. We are the only fashion certification service in Britain that specialise in high street brands.” KEY BUSINESS USP (B2B) Offers existing brands with certification that can be trusted and recognised by people KEY CONSUMER USP (B2C) Showcases fashion brands excising their sustainable practices Provides consumers who are looking to shop consciously with an easy shopping experience

branding. To ensure the brand image is seamless throughout the whole business ECONSCIOUS Ltd.’s vision, mission and essence will be distributed amongst all employees and potential partners. It is important for the ECONSCIOUS Ltd to remain coherent with its messages emphasising a strong brand image.

brand image. To develop a creative brand image a focus group was conducted gaining consumer opinions on potentials logo. Respondents were asked to state words that they associated with sustainability. The words ‘eco-friendly’, ‘green’, ‘clean’, ‘conscious’, and ‘environmental’ evoked words like ‘protection’, ‘earthy’, ‘recycling’ and ‘ natural’.

brand name. Research was undertaken for a name that would best represent the brand. Using the brand essence model conducted and consumer feedback, the two words that best described the brand was conscious and eco-friendly. ECONSCIOUS Ltd derived from the two words being merged together.

initial logo ideas. The initial logo ideas were developed from the insights gained from the focus group. A vote was initiated and logo ‘B ’was most appealing to the consumer group therefore best representing ECONSCIOUS Ltd.

(A)

(B)

fig. 16

fig. 17

colours. Respondents stated they associated sustainability with the colours ‘white’, ‘beige’ representing purity and earthy tones like ‘green’ and ‘brown’.

key messages. ECONSCIOUS Ltd powerful key messages crystallize the brand and should consistently communicate the key information of the company to audiences and consumers. • ECONSCIOUS Ltd is a local company with a global message. • ECONSCIOUS Ltd can be trusted to do the right thing. • ECONSCIOUS Ltd continuously fulfils the commitments to investors, customers, employees and communities. • ECONSCIOUS Ltd will anticipate and respond to consumer and business needs.

team. Marketing director: Responsible for the running of ECONSCIOUS Ltd, overlooking all aspects of the business. • Social media manager: Responsible for the running of all social media accounts. • Content writer: Responsible for writing monthly magazine and website content. • Digital designer: Responsible for the design and layout of the monthly magazine. • Sustainable experts: Representatives that will be allocated to licensees responsible for the development of their businesses.

location. All consumer and market research is UK based making it the most ideal location for ECONSCIOUS Ltd to operate in. Office space in Farringdon London will be hired due to low rent costs and the centralised location in the capital city.

T H E S E RV I C E .

07 65

t h e a p p. Android dominates the smart phone market with a share of 57% with Apple iOS being a close second with 47% (Mintel, 2015). Peer recommendations are the biggest drivers of app downloads with consumers rating this as their influencer. According to Mintels â&#x20AC;&#x2DC;Influential Trend Reportâ&#x20AC;&#x2122; peer to peer marketing has lead marketers to spend money on courting influential groups like millennials. They are considered most likely to spend money and be frequents downloaders of apps (Mintel, 2015). However, millennials being technologically savvy means that they harsher critics of poor quality apps so testing the app on a small group before launching to the mass public would be ideal (Mintel, 2015). Focus group respondents stated that they engage mostly with apps on their Smartphone and ideally prefer if brands invested in them due to increasing accessibility and convenience. ECONSCIOUS Ltd would develop the B2C relationship by creating an app that allowed consumers to engage with certified brands. The in app feature would allow them to purchase products through the app. Also, consumers would be able to scan existing clothing that they own which will provide information on how the garment was manufactured. Most products travel through various parts of the world before they reach shop floors and the ECONSCIOUS Ltd app would share information about the process. Workers right, transparency, policies and monitoring would be analysed and made available to the consumer. Focus groups respondents stated the app is a simple way to understand how products are affecting the planet making the change of leading a conscious lifestyle easier. However, respondents stated reward schemes would make the app more engaging. So, ECONSCIOUS Ltd would provide a voucher codes for various activities (restaurants, day trips, cinema tickets) when consumers buy products through the app.

... 66

... fig. 17

the website. The website will be B2B feature providing information on ECONSCIOUS Ltd’s services. The services will include: • Global Fashion Standard Mark – Certification for fashion brands demonstrating commitment to ethical trading • Global Ethical Standard Mark – Certification for ethical fashion brands • Global Organic Standard Mark – Certification for organic fashion brands

fig. 18 With all certifications being of a high level of service, technical support and sustainable practice knowledge will be provided to all licensees. Each licensee will be provided with a fashion expert that aids in developing the businesses efficiently by suggesting tips into bettering their sustainable practices

mobile version.

fig. 19

E magazine. Each licensee will receive a monthly magazine featuring essential information relating to standards and regulation changes made by the government that may affect particular certifications. This is ensuring all ECONSCIOUS Ltd licensees are proactive in maintaining their sustainable business.

fig. 20

T H E M A R K E T I N G S T R AT E G Y.

08 73

marketing objectives. • • • •

To attain 600 brands licensee subscriptions by 2019. To become the leading sustainable fashion certification service in the UK by 2020. To increase the market sales for UK clothing by 0.1 % by 2020. To feature in store promotion within brand licensees store by 2019.

marketing. The following methods will be used to attract licensees to ECONSCIOUS Ltd’s services: • Direct marketing via email to businesses • Pay per click advertising Consumer advertising: • Social media advertising • PPC advertising

B2C advertising.

ECONSCIOUS Ltd will be promoted primarily online with limited traditional media promotion techniques (B2B magazine promotion). The low cost of online advertising means the ECONSCIOUS Ltd can acquire a mass consumer base at a quick rate. To maximise the number of potential licensees ECONSCIOUS Ltd will work with ‘Stumble Upon’- a discovery engine that recommends web content to users. Stumble Upon • Targeting options used to target the right audiences and niches • Receive commission on net sales generated • Cost effective way of promotion

ppc advertising. Pay per click advertising is the most used way for advertising businesses online. ECONSCIOUS Ltd will use Google AdWords as it’s the largest search engine with a 67% market share. This method will be used to generate traffic to the website, giving access to millions of consumers and businesses searching for the service. Also, this will be beneficial when ECONSCIOUS Ltd expands oversees as they will be an existing consumer base prior to launch. The low running costs of the service and cheap PPC transactions means that ECONSCIOUS Ltd can spend more than the competitor’s searchable phases and words.

B2B direct marketing. ECONSCIOUS Ltd will send emails to a database of fashion brands (currently suited to be approved) advertising the services. The rise in digital has meant targeting e-consumers is important as more businesses are operating online. This method will be used for the coming years as the business gains recognition and a strong database of licensees.

fig. 20

fig. 21

t h r e e y e a r s t r a t e g y. YEAR ONE

Launching To ensure the launch of the ECONSCIOUS Ltd service is successful the first year will be dedicated to developing and refining the B2B website and B2C app. This will require intensive market and consumer research. Research on current fashion brands that are exercising their sustainable footprint will be carried out in order to identify which brands ECONSCIOUS Ltd should approach to be certified. Once licensees have been secured, 2 months will be devoted to completing all the necessary checks into validating the licensees’ sustainable practices within their brand. This is to ensure lead time for website and app updates. These checks will be completed by the in-house sustainability experts. Securing licensees is important in building the business leading to the B2C app launch. The launch period is important for ECONSCIOUS Ltd marketing and communication strategy and year one will focus on promoting the brand to businesses and consumers. The initial campaign will be online and offline based reaching a wide audience.

YEAR TWO

The progress of year one will be analysed ensuring the objectives are being met. Online/Instore feature The first half of year two will be devoted to featuring the ECONSCIOUS Ltd logo on certified brands website and in stores. It’s imperative to strengthen ECONSCIOUS Ltd.’s brand image so year two will introduce a series of marketing strategies aimed to target the consumer. App Launch/ Refining Business The app will launch in year two as ECONSCIOUS Ltd will have a directory of licensees that will be able to feature on the B2C app. Throughout year one and year two consumer feedback will be analysed in order to continuously develop the business. This will be reviewed through the app whereby consumers can leave comments and questions. For the ECONSCIOUS Ltd B2C app to be successful consumer opinion is vital in providing a seamless experience. Post B2B/B2C launch campaigns Year two will see the beginning of both B2B and B2C post launch campaigns that will continue in year 3 and 4.

YEAR THREE

Expanding ECONSCIOUS Ltd. The main focus of year three will be expanding and developing ECONSCIOUS Ltd. The marketing team will focus on new innovative ways to attract new consumers and licensees. By year three ECONSCIOUS Ltd should have secured over 150 licensees with methods to attract more. New growth opportunities will be researched in year three such as, making the B2C app available in oversee markets and diversifying into opening charities aiding oversee garment workers.

C O M M U N I C AT I O N P L A N .

09 79

communication objectives. • • • •

Attain 2500 followers on Twitter in the first 2 months of social media launch Attain 3000 followers on Instagram within the first 3 months of social media launch Attain 2500 likes on Facebook within the first 3 months of social media launch Attain 1500 app subscribers in the first month and a half of launch

media. PROPOSITION

MEDIA IMPORTANCE

CHALLENGES

• Communicating to the ECONSCIOUS Ltd consumer • Gaining licensees • Enticing new and strong consumer base • Penetrating the organic certification market

• To engage potential consumers • Appealing to different and licensees. potential licensees • To gain national/global • Finding the most effective recognition marketing techniques • Provide potential consumers • Engaging consumers and and licensees with brand licensees information. • Increase social media and website traffic. APPROPRIATE MEDIA

Social media, online advertising, in app advertising, press releases, print

fig. 22

B 2 B s t r a t e g y. PR Press coverage for ECONSCIOUS Ltd is vital for promoting the service. Press releases will be published by major print broadcasters in order to strengthen brand credibility in the minds of targeted consumers and licensees. The benefit of this being consumers gaining an unbiased view of the service through third party outlets. For example, a review in a local newspaper would be more impactful then in-house advertising, as consumers perceive the media as presenting an impartial view of the service (Macleod, 2015). PUBLICATION

SECTION

PLATFORM

BENEFIT

Guardian Newspaper (Mixed gender promotion)

Sustainable business/ Print/Online Fashion

• Strong brand image • Serious tone of voice proving credibility of service • Respectable and well known sustainable fashion section within newspaper fitting brand purpose

Grazia Magazine (Predominantly female Promotion)

Fashion

• Strong brand image • Targets same consumer base (Millennials) • Circulation rate of 160,000 reaching wide consumer/business base

Cosmopolitan Magazine (predominantly female promotion)

Fashion

Online

• Strong brand image and online presence • Strong fashion coverage • Circulation rate of 1,000,000 reaching wide consumer base

Metro Newspaper (Mixed gender promotion)

General news/ Strong fashion section

Print/Online

• Targeted for inner city tech savvy worker • 3.2 million readers every day, reaching a wide consumer base • 1.3 social media followers

The press releases will be published in staggered stages of brand launch. The first release will be through The Guardian and Metro newspaper announcing the launch of the service and consumer app. The second release will be published once licensees have been confirmed by ECONSCIOUS Ltd announcing brands that have been certified by the service. Both Grazia and Cosmopolitan magazine will cover this. Press will also be invited to the industry launch event that will be later discussed in section 9.2. Limitation A limitation of press releases are the lack of direct control ECONSCIOUS Ltd may have on the brand message being relayed to targeted consumers. Whilst the ECONSCIOUS Ltd brand essence has been carefully crafted, media outlets may convey the message incorrectly. In case of this ECONSCIOUS Ltd will work with publications to validate press releases before they are published.

B 2 B i n d u s t r y l a u n c h e v e n t : l e t’s f l o u r i s h . The launch event ‘Let’s Flourish’ for ECONSCIOUS Ltd will take place to generate press attention and new business partnerships. Potential licensees will be invited enabling more understanding of ECONSCIOUS Ltd.’s services. The event will consist of: • Speeches being made by team members on the affects fast fashion is having on the planet, what brands can do and the benefits of being certified by ECONSCIOUS Ltd. • Live entertainment. • Causal dinner for invited guests. • Photo call for media purposes. • Donation stand where offerings can be made. All proceeds will benefit the ECONSCIOUS Ltd initiative enabling sustainable livelihoods within fashion. Keeping in theme with ‘Let’s Flourish’ the event will take place in Kew Gardens reinforcing the natural, organic and authentic essence of the brand.

B 2 C s t r a t e g y. email. ECONSCIOUS Ltd will offer consumers a subscription service to receive emails correspondence. According to PR couture automated emails receive 119% higher click rate than broadcast emails because they speak to consumers at the chosen moments (PR Couture, 2015). According to Mintel consumers are most engaged with their devices on Sundays making it the most ideal day for automated emails (Mintel, 2016). Limitation According to Mintel consumer perceptions of email advertising can be negative due to the intrusive nature of businesses bombarding information (Mintel, 2016). ECONSCIOUS Ltd will empower consumers allowing them to dictate the content they are sent and how often. This keeps ECONSCIOUS Ltd relevant to the consumer.

social media. The first step would be creating social media accounts on Facebook, Twitter, Youtube and Instagram. ECONSCIOUS Ltd will target the digital native who is highly influenced by social media. With the rise in social media networks, posting and sharing pictures have become common occurrences amongst millennials and many people are interacting with brands online (Mintel, 2015). A survey of 500 people taken by Mintel showed a third of young females use social media sites to share their favourite brands with friends (Mintel, 2014). Men are less likely to use social media for interacting with brands; however, when they do it is mainly for seeking out special offers. Consumers are increasingly using social media sites to engage with brands and show that they like adverts and campaigns (Mintel, 2015). Focus group respondents suggested they would like to see daily updates on ECONSCIOUS Ltd but do not wanted to be overloaded with posts as it can become overbearing. Three posts a day on each platform will update the consumer on new brands that have been certified, incentive offers, collection lines brands are working on and general information on sustainability. The social media sites will become live prior to the launch of the service to create interest. The likes and follow the pages receive will accumulate through peer word of mouth

fig. 22

B 2 B p o s t l a u n c h s t r a t e g y.

Assuming the success of the brand, ECONSCIOUS Ltd will emit it’s own pull marketing strategy where businesses will actively seek the brand themselves, resulting in less need for B2B marketing. The focus for ECONSCIOUS Ltd will be making the brand a house hold name and advertising to brands on the benefits of being certified by ECONSCIOUS Ltd.

B2C post launch strateg y : f lourish me!

To maintain the brands awareness after initial launch in year one ECONSCIOUS Ltd will launch the online campaign ‘Flourish Me’. Social media bloggers will be approached to represent the brand online by regularly posting about the brand. The bloggers will be thoroughly researched in order to best promote ECONSCIOUS Ltd.’s message, this will include fashion and health bloggers. Prior to contacting the selected bloggers an activity plan will be provided. This will include: • How many posts they are expected to write • What the contests giveaway have to include • Ensuring ECONSCIOUS Ltd promotion to their readers Benefits of using bloggers: In reference to the primary research finding, millennials are influenced by social media. The power of blogs influence consumers buying behaviour and according to research undertaken by Corporate Eye 9 in 10 consumers in the UK purchase products after reading a blog. 1 in 2 UK consumers use blogs for product investigation and inspiration. Blog advertising is beneficial for ECONSCIOUS Ltd, being that this is a quick way to advertise through bloggers who have an existing strong consumer base (Mintel, 2014). Limitations Bloggers and consumers can post negative comments that sometimes cannot be removed. There is a possibility that bad news can go viral tarnishing the brand. ECONSCIOUS Ltd can overcome this by using negative comment to best improve that brand. However, this limitation is of low risk therefore making social media marketing ideal for ECONSCIOUS Ltd to continue brand promotion after the initial brand launch in year one.

strateg y implementation plan. 2017 STRATEGY/ COMMUNICATION

Crowdfunding campaign (Further explored in chapter 10) Crowdfunding incentives send out

B2B Email send outs

B2C Email send outs

Social media launch (Continuation: Purple)

Press statements released to publications (Pre-launch through to launch) Industry launch event: Letâ&#x20AC;&#x2122;s Flourish!

In store and online brand advertising

Post launch B2B/B2C strategy launch

2018 3

2019 12

B R A N D M A NAG E M E N T.

10 89

customer ser vices. For business enquiries ECONSCIOUS Ltd will provide email and telephone support from the UK Farringdon offices. The ECONSCIOUS Ltd website will offer a 48 hour response time on email enquiries in regards to licensee agreements and ethical trading information. Consumers receive email order confirmation on products bought through the app but ECONSCIOUS Ltd will not be responsible for stock, warehouse and dispatch information. Tracking information and contact details will be provided in the confirmation email for product queries.

b u s i n e s s d e v e l o p m e n t s t r a t e g y. The ECONSCIOUS Ltd business development strategy will involve researching ethically trading businesses that match the criteria to be certified. The businesses must fit the framework before the sustainable experts and management agree to the certification. ECONSCIOUS Ltd will try to secure licensee agreements in the long term being extremely attractive in regards to gaining capital and market share. The framework: • Ethical trading strategy • Mass consumer base • Large online following • Product desirability • Competitive market share Business fitting the criteria will ultimately lead to an increase in consumer engagement for ECONSCIOUS Ltd due to their existing attractive consumer base.

t e c h n o l o g y. ECONSCIOUS Ltd website will be developed by ArtistsWeb a London based e-commerce website developer. ArtistsWeb are responsible of the running of high websites including ‘Deezer’, ‘Amica’and ‘Superior Interiors’. With ECONSCIOUS Ltd purely operating online, the website is important in representing the brand to businesses. The websites offers: • Simple navigation • Certification service enquiry form • Business e-mail service • Integrated social media updates • Video and audio functionality • Graphic and animation

a p p. The ECONSCIOUS Ltd app will be developed by ‘Gooii Ltd’a Nottingham based company due to the low fee costs.

g r o w t h s t r a t e g y. The main objective for ECONSCIOUS Ltd is to become the leading e-commerce fashion certification service in the UK. This will be achieved by generating economic return by capitalising off the thorough business model. The key elements of ECONSCIOUS Ltd’s growth strategy are: • • • • •

Continually developing the website and app features Expanding licensee and consumer database Offering new services for both licensees and consumer Implementing new marketing strategies Enhance consumer shopping experience within app and website

ECONSIOUS Ltd plans to continually enhance the services to address the evolving needs of the planet, consumer and business needs. Specifically, ECONSCIOUS Ltd will prioritise on the technical features of the website and app ensuring ease of use for businesses and consumers.

design, implementation, maintenance. External companies will be approached for the design of the website and app which includes the maintenance of both platforms. A dedicated in-house team will be in charge of the content management. As seen above in chapter 6 both platforms are designed to best represent the brands identity.

F I NA N C IA L S .

11 93

start up costs. The start-up costs for ECONSCIOUS Ltd will include costs for the initial development of the website and app, wages and office space. The estimated figures have been listed below: START-UP COSTS SERVICE COSTS App development

£15,000

Website development

£5,000

LOCATION Office space

£5,220

Utility Bills

£1,200

Electronics (Laptops, phone etc...)

£2,800

Equipment (stationary etc...)

£150

Salaries/Wages

£95,000

Total

124,370

funding. Crowdfunding Crowd funding is the practice of funding a particular project by raising money through a large group of people. ECONSCIOUS Ltd will use this concept to both raise money for the business and create consumer awareness as the nature of this practice requires promotion to consumers and investors. The crowd funding campaign will consist of a video (available on the website and social media accounts) highlighting the brands concept, objectives and purpose. According to website ‘crowderfunder.com’ rewards are given in exchange for money being an effective tool of testing the viability of the business and building loyalty with consumers. REWARDS

DONATE REQUIREMENTS

cuddly toys

(Donation: £5-£20)

stationary sets

(Donation: £5-£20)

tote bags

(Donation: £21-£50) A recycled tote bag with ECONSCIOUS Ltd logo on the front with optional personalisation (Donation: £50+) Vouchers in association with ‘wowcher’ for weekend trips

Voucher

donations. Public donations will be accepted from members of the public and partners that will aid in the development of the business.

lotter y funding The big lottery fund awards grants to UK organisations that help improve their environment. Funding is given for many reasons, one being ‘sustainable development’ for organisations helping the quality of life for future generations. ECONSCIOUS Ltd falls into this category therefore eligible for funding. Funds are granted between £300- £500,000.

uk government. Similarly, government funding is also provided to businesses that focus on sustainable practices. Funding is offered between £500- £10,000,000. FUNDS UK government

£90,000

Crowdfunding

£5000

Lottery funding

£100,000

Total

£195.000

The total amount borrowed was estimated in regard to ECONSCIOUS Ltd.’s start-up costs. The estimated cost will fund ECONSCIOUS Ltd prior to the business generating profit.

B2B certification fees. Below are the annual costs of licensee certifications by ECONSCIOUS Ltd. The figures have been calculated insuring ECONSCIOUS Ltd retains revenue and covers the overhead costs for future years.

commission. Licensees certified by ECONSCIOUS Ltd will pay an annual membership fee for the certification and expert business knowledge provided. ECONSCIOUS Ltd will commission off any consumer purchases made through the app and PPC advertising on the website. CERTIFICATION

FEE INCLUDING VAT

Application fee – covering your first year with us

£799

Approved certification official stamp – up keep

£999

sales forecast. The sales forecast is a summary of what ECONSCIOUS Ltd revenue projections for the coming months. B2C

Targeted clicks per annum

Rate per click (£)

Total (£)

YEAR ONE

YEAR TWO

75,000

£0.30

£22,500

YEAR THREE

82,500

£0.30

£24,750

B2B

Targeted licensee agreements per annum

Rate per agreement

Total (£)

YEAR ONE

207

£799

165,393

YEAR TWO

207

£999

206,793

YEAR THREE

207

£999

206,793

All figures have been calculated using the volume brick up model. Industry insight (Soil association representative) verified targeting 10% of total fashion brands operating with the UK. See appendix no 5.0.

marketing budget.

YEAR 1 2016-2017

YEAR 2 2017-2018

YEAR 3 2018-2019

Metro Newspaper (1 page spread)

£75

Grazia magazine (1 page spread)

£10,000

Cosmopolitan Magazine £13,761 (1 page spread)

£13,761

£3,250

£500

£600

Guardian (1 page spread) Bloggers

Swing ticket production £600 Venue hire

£2000

Food/drink

£700

Entertainment

£1000 £28,186

£28,186

TOTAL (overheads)

£31,386

profit and loss account.

The profit and loss account shows ECONSCIOUS Ltd financial performance over the next three years. Due to ECONSCIOUS Ltd being an online service the direct cost are ÂŁ0 as no physical product is being sold. First year of running will see a loss due to repayments of the initial start-up costs. ECONSCIOUS Ltd will break even in year two making every year after purely profitable. Future years will see ECONSCIOUS Ltd expand in new markets with potential in operating on a global scale. This resulting sales revenue increase for year four and five.

measures of success. To determine whether ECONSCIOUS Ltd are being successful there will be a number of factors that will be considered. Measures Profitability

Making profit after business outgoing highlights ECONSCIOUS Ltd.â&#x20AC;&#x2122;s successes.

Growing consumer base

Gaining and retaining a consumer base is a sign of ECONSCIOUS Ltd reaching their target consumer base affectively. This will be done by analysing the social media accounts, analysing the consumer engagement levels. Without a consumer base a business successes if very limited and will not be able to accommodate any long term goals.

Consumer and business satisfaction

Consumer (B2C) and business (B2B) satisfaction will be an indication that ECONSCIOUS Ltd are meeting needs. B2C: Consumers will be able to rate ECONSCIOUS Ltd through the app.

Employee satisfaction

B2B: Businesses will be sent an annual form whereby they can rate the service they have been provided. Developing a positive work environment for hard working employees is important in retaining quality members of staff. Acknowledging their appreciation will make them only want to work harder.

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risk analysis. The risk analysis will be used to identify the factors that may jeopardise ECONSCIOUS Ltd successes. The risks have been ranked from 1-5 (one being low risk and 5 being high risk).

Type

Factor

Safety

Potential loss of life or injury in working environment Potential incident (E.g. Fire, environmental damage etc...)

Revenue

Monetary loss 5 Consumer base loss Licensee/partnership loss Lost opportunity in market loss

This is highly risky due the ECONSCIOUS Ltd being reliant on both an active consumer base and licensee agreements to make money. The satisfaction levels for both B2C and B2B platform with be regularly monitored and all feedback will used to improve the running of the business.

Costs

Any unexpected costs that affect the business but could have been prevented

The financials for ECONSCIOUS Ltd have been thoroughly calculated in regards to the business gaining capital. The loss of any unexpected finances will affect the profit and loss accounts leaving the brand in a vulnerable position.

Legal

Business compliance failures

In reference to the PESTLE analysis in chapter 4, ECONSCIOUS Ltd complying by all business laws is highly important in avoiding being potentially shut down by authorities.

The risk of data loss is highly risky due to consumer and business data protection issues. With both the ECONSCIOUS Ltd app and website being created and maintained by external companies, the responsibility of data protection will be handled by them.

S e c u r i t y System breakdowns breaches causing data loss or capital losses

Risk level 1

Reason With ECONSCIOUS Ltd being based in a small office, the risk level of this occurring is low. The space will be rented so the building will have existing safety regulation that ECONSCIOUS Ltd would comply by.

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future: ansoff matrix model. The Ansoff Matrix table analyses the future growth potential of ECONSCIOUS Ltd highlighting the viability for the business.

Existing products

New Products

Existing Markets Market Penetration – Low Risk

Product Development – Medium Risk

• Gaining market share through • Extension into certifying children fashion brand certification. wear brands • Increase business subscription sales and consumer traffic in existing markets New Markets

Market Development – Medium Risk

Diversification – High Risk

• • Making the service available to brands that operate oversees e.g. BRIC countries •

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Diversifying by certifying brands outside the fashion industry e.g. Food. Creating 100% transparent fashion brand extended from ECONSCIOUS. • The start-up of charities within the UK and eventually on a global scale

conclusions. The project sought out to bring shopping consciously mainstream by creating a new business idea whilst offering financial, social and environmental benefits. This idea birthed ECONSCIOUS Ltd, an ethical fashion certification service targeted towards millennials with the purpose being bringing awareness to the implications fashion can have on the planet.

stage one: critical reflection. In reflection to stage one thorough market research aided in successfully understanding the wider issues of fashion. This benefited in predicting how these affects will influence the future of brands and consumers in the UK. Both primary and secondary research was undertaken at a high level to effectively achieve the objectives set out. The ECONSCIOUS Ltd concept responds to the issue at hand and was derived from the clear gap in the market highlighted from both primary and secondary research.

stage two objectives. The principle research findings for this paper was to: • Distinguish if there was a business and consumer appetite for ECONSCIOUS Ltd. • Research the current state of the fashion industry and analyse any gaps for ECONSCIOUS Ltd to penetrate. • Identify and validate the feasibility of ECONSCIOUS Ltd amongst millennials. In reference to the research objectives secondary research provided in depth knowledge on current state of the fashion industry and consumer buying behaviours of sustainable fashion brands. As explored in Chapter 4 primary research highlighted that there is both a consumer and industry need for the ECONSCIOUS Ltd concept. Consumers are demanding more transparency and it’s the brands responsibility to respond to this. With the mind-set of the millennials changing, they care more about environmental and social issues then previous generation, it’s inevitable the fashion industry has to address this by tackling the effects of fast fashion. Industry experts also supported this by collectively stating fashion brands have to partake in sustainable practices in order to push the industry forward to lessen the lasting negative effects.

limitations. The biggest challenge was gaining industry insights from both fast fashion and sustainable clothing brands. However, in depth research was collected and successfully aided the development of this report. If there was not given time restraint more industry insight would have been collated. Nevertheless, the data attained informed the research which lead to the development of ECONSCIOUS Ltd.

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future prospects. The launch of ECONSCIOUS Ltd will not only positively endorse conscious shopping, but will economically benefit the UK industry with the target of 0.1% (£12.4m) sales growth by 2020 (In reference to initial marketing objectives). Alongside this, brands certified by ECONSCIOUS Ltd will be appealing to the changing consumer, which will increase awareness (surrounding the effects of fast fashion) thus benefiting the future. The conservation of the world’s natural resources and people will be protected – this being the ultimate goal. Overall, as a business ECONSCIOUS Ltd will aim to operate on a global scale. Once ECONSCIOUS Ltd has successfully penetrated the EU the focus will be in BRIC countries as they generate over a quarter of the worlds apparel and footwear sales and are expected to account for 64% of the global projected sales. Based on the profit and loss accounts and the Ansoff Matrix analysis above this should be financially feasible for the future. ECONSCIOUS Ltd will continue to find innovative ways in promoting a conscious lifestyle to people all over the world.

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illustrations. Fig. 01 Parvin Dabas, (2010), Cotton farmers [ONLINE]. Available at:https://shopforchange.wordpress. com/2010/02/05/parvin-dabas-cotton-photos/ [Accessed 2 May 2016]. Fig. 02 Caleb George, (2016), The sea [Online] Available at: https://unsplash.com/photos/Lh6X0gXu7eg/ info [Accessed 2 May 2016]. Fig. 03 Haya joy, (2016), Girl model [Online] Available at: http://haya38.exblog.jp/i4/ [Accessed 2 may 2016] Fig. 04 Albert melu, (2015) , Plant [Online] Available at: https://unsplash.com/photos/ruQHpukrN7c [Accessed 2 May 2016] Fig. 05 Björg Vigfúsdóttir, (2010), Model [Online] Available at: https://ernabergmann.wordpress.com/ brynja-for-topshop/ [Accessed 2 May 2016] Fig. 06 Björg Vigfúsdóttir, (2010), Model [Online] Available at: https://ernabergmann.wordpress.com/ brynja-for-topshop/ [Accessed 2 May 2016] Fig. 07 Björg Vigfúsdóttir, (2010), Map [Online] Available at: https://ernabergmann.wordpress.com/brynja-for-topshop/ [Accessed 2 May 2016] Fig. 08 Björg Vigfúsdóttir, (2010), Model [Online] Available at: https://ernabergmann.wordpress.com/ brynja-for-topshop/ [Accessed 2 May 2016] Fig. 09 Philip crew (2014), London [Online] Available at: https://www.pexels.com/photo/london-nightlights-bridge-50632/ [Accessed 2 may 2016] Fig. 10 Philip crew (2015), Plant [Online] Available at: https://www.pexels.com/photo/london-nightlights-bridge-50632/ [Accessed 2 May 2016] Fig. 11 Adam smith (2014), Model black and white [Online] Available at: https://www.pexels.com/photo/london-night-lights-bridge-50632/ [Accessed 2 May 2016] Fig. 12 Davide ragusa (2015), Crowd [Online] Available at: https://unsplash.com/photos/gcDwzUGuUol [Accessed 2 May 2016] Fig. 13 alasdair-mclellan (2010), Topshop models [Online] Available at: http://fashiondailymag.tumblr. com/post/48848304308/models-rosie-tapner-bambi-northwood-blyth [Accessed 2 May 2016] Fig. 14 Markus Spiske (2015), dry soil, [Online] Available at: https://www.pexels.com/photo/earth-fielddesert-dry-96865/ [Accessed 2 May 2016] Fig. 15 lionel abrial (2015), Cotton in hand, [Online] Available at: https://unsplash.com/photos/0DosbK_etK8/info [Accessed 2 may 2016]

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Fig. 16 lionel abrial (2015), happy farmers cotton, [Online] Available at: https://unsplash.com/photos/ 0DosbK_etK8/info [Accessed 2 may 2016] Fig. 17 Jen Maga (2015), Cotton on head [Online] Available at: https://www.pinterest.com/ pin/218776494377153088/ [Accessed 2 May 2016] Fig. 18 Sedi Kukwikila, website mock up [Self made] Fig. 19 Sedi Kukwikila, website mobile mock up [Self made] Fig. 20 Sedi Kukwikila, magazine mock up [Self made] Fig. 21 Josh Ollins (2010), two Topshop models Available at: https://models.com/work/topshop-topshop-fw-10 [Accessed 2 May 2016] Fig. 22 Josh Ollins (2010), two Topshop models Available at: https://models.com/work/topshop-topshop-fw-10 [Accessed 2 May 2016]

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references. The business plan work book By Colin Barrow, Paul Barrow, Robert Brown Publisher: Kogan Date: 2012 To Die For: Is fashion wearing out the world? By Lucy Siegle Publisher: Fourth Estate Date: 2011

other sources.

How fashion works By Gavin Waddell Publisher: Blackwell Date: 2004

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b i b l i o g r a p hy.

Fast Fashion byÂ Barnes, Dr Liz, Lea-Greenwood, Ms Gaynor PUBLISHER Emerald Group Publishing Ltd DATE: July 2006 The business plan work book By Colin Barrow, Paul Barrow, Robert Brown Publisher: Kogan Date: 2012 To Die For: Is fashion wearing out the world? By Lucy Siegle Publisher: Fourth Estate Date: 2011 Fashion Theory Editor: Malcolm Barnard Publisher: Routledge Date: 2007 How fashion works By Gavin Waddell Publisher: Blackwell Date: 2004

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Ritchie, R. (2011). Sustainable Fashion. There’s An App For That.. [online] EcoSalon. Available at: http:// ecosalon.com/sustainable-fashion-there%E2%80%99s-an-app-for-that/ [Accessed 16 May 2016]. Roesler, P. (2016). How social media influences consumer buying decisions - The Business Journals. [online] The Business Journals. Available at: http://www.bizjournals.com/bizjournals/how-to/marketing/2015/05/how-social-media-influences-consumer-buying.html?page=all [Accessed 9 Apr. 2016]. Rose, C. (2015). Sustainable Growth in the Fashion Industry | European Year for Development. [online] Europa.eu. Available at: https://europa.eu/eyd2015/en/fashion-revolution/posts/sustainable-growth-fashion-industry [Accessed 4 May 2016]. Schmitt, H. (2016). 20 Innovative Companies That Combine Fashion and Tech. [Blog] Brit + Co. Available at: http://www.brit.co [Accessed 3 May 2016]. Smedley, T. (2016). Nothing to wear? Peer-to-peer fashion rental start-up could help. The Guardian. [online] Available at: http://www.theguardian.com/sustainable-business/fashion-rental-startup-rentez-vous [Accessed 12 May 2016]. Soil Association, (2016). Organic Market Report 2016. [online] London. Available at: https://www.soilassociation.org/media/5644/sa-organic-market-report-2016.pdf [Accessed 11 May 2016]. Style with heart, (2016). Organic Clothing Brand Listing. [online] Stylewithheart.com. Available at: http://www.stylewithheart.com/category/organic/ [Accessed 8 May 2016]. TE Online, (2016). Global Recession Impacts on Fashion Industry: Strategies for Survival. [online] London. Available at: http://www.teonline.com/articles/2009/03/global-recession-impacts-on-fashion-industry-strategies-for-survival.html [Accessed 8 May 2016]. The Independent, (2016). Fashion apps: Retailers roll together shopping and social networking for mobile customers. [online] Available at: http://www.independent.co.uk/life-style/fashion/features/fashion-apps-retailers-roll-together-shopping-and-social-networking-for-mobile-customers-10367330.html [Accessed 7 May 2016]. Trendone, (2016). Macro-Trend: Ethical Consumption. [online] Trendone.com. Available at: http://www. trendone.com/en/trend-universe/macro-trends/macro-trend-detail/ethical-consumption.html [Accessed 16 Apr. 2016]. Trendone, (2016). Macro-Trend: Reconomy. [online] Trendone.com. Available at: http://www.trendone. com/en/trend-universe/macro-trends/macro-trend-detail/reconomy.html [Accessed 16 Apr. 2016]. Trendone, (2016). Mega-Trend: Sustainability - TRENDONE - EN. [online] Trendone.com. Available at: http://www.trendone.com/en/trend-universe/mega-trends/mega-trend-detail/sustainability.html [Accessed 16 Apr. 2016]. Ueland, S. (2016). 13 Innovative Mobile Commerce Apps. [online] Practical Ecommerce. Available at: http://www.practicalecommerce.com/articles/78916-13-Innovative-Mobile-Commerce-Apps [Accessed 8 May 2016]. Vaughan, A. (2016). Soil Association has disowned 'O word', say resigning trustees. The Guardian. [online] Available at: http://www.theguardian.com/environment/2014/dec/01/soil-association-has-disowned-o-word-say-resigning-trustees [Accessed 7 May 2016].

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appendices .

ONLINE SURVEY RESPONSES 1.0

1.01

1.02

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1.03

1.04 115

1.05

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1.07

1.08 117

1.09

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focus group responses. Question 1: Can everyone begin by introducing themselves and stating your favourite clothing brand? Category code A B C D

Gender FEMALE19 FEMALE20 FEMALE22 MALE22

Response Hi, I’m Olivia. That’s a tough one. I’d have to say ASOS I’m Karen and my favourite brand is Topshop I’m Eve and my favourite brand is Zara I’m Jason and my favourite brands is ASOS

FEMALE23

I’m Nav and my favourite brand is ASOS

Question 2: The fashion industry has many implications on the planet as you may know. This being socially and environmentally. For example sweat shops and child labour. Are you aware of these issues? Which issues concern you the most? Category code A

Gender FEMALE19

Response Yeah, I would say sweat shop. Fast fashion retailers being so common we know how they are making their clothes but it’s not being highlighted. Especially in student life it is so popular to shop on this website because they are so cheap. These retailers are online and the consumer is very much disconnected to the idea that sweat shops are being used to

FEMALE20

FEMALE22

D E

MALE22 FEMALE23

Yeah, child labour I would say. Its saddening that kids are going through something like that just to feed their families. It’s morally not right. Yeah, depleting resources would be my biggest concern. If we continue the way we do it will obviously have devastating effects on our planet. I think there could be a lot more in the media about the affects fast fashion is having on our planet. Yeah, exactly before rana plaza no one knew about it. Yeah, often people choose value over quality. In the past people didn’t care about what was going on but since rana plaza it’s different. I agree with eve brands should be more transparent.

2.0

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industr y inter views.

People Tree Representative

3.0

Do you feel that there is enough awareness of ethical issues surrounding fast fashion being covered in the media? I don’t think they’ll ever be enough awareness to the issues because it’s a problem that realistically will not go away. All we can do is better the problem and by that we will constantly need awareness highlighting the issues. There has been change since rana plaza but not enough. How are you addressing the issues? People Tree designs garments to be produced by hand as much as possible, so our products have small carbon-footprints too. The rest of our eco-policy is pretty straightforward. We promote natural and organic cotton farming. And we avoid using damaging chemicals in production (where possible, we use recycled and biodegradable substances instead). Also, we try to recycle everything we can, and always aim to protect water supplies and forests in the environments we work in. What do you think brands can do moving forward? Brands have to be more sustainable there is no way the industry can continue if brands don’t make a change. Monitoring levels of production will be difficult for fast fashion brands as the industry is about turnover and selling more than the competitor. But brands should address some of their issues in order to be a more sustainable for the future. ECONSIOUS is a B2B service whereby fashion brands are able to get a stamp of approval for taking action into bettering the planet. With consumers engaging with transparency do you think this is a viable business plan? Yes, that’s great! People are so influenced by fast fashion brands and some are aware of the ethical issues surrounding this so if consumers know that they are buying into something good it’ll be beneficial for the brand and obviously the planet. Do you think there is growth potential in the idea? Yes, for sure. A lot of potential, I’m surprised there isn’t something out their like that already. The only problem would be getting brands to sign up to it but once you nail that then it’s great. Lastly, what do you think the fashion industry is missing and how can it be better improved in regards to sustainability? Brands should use the corporate voice to create awareness of the topics and make step into bettering the planet. They should promote natural and organic farming, avoid polluting substances, protect water supplies, use biodegradable substances where possible and recycle where possible. All these factors would aid in leading a more sustainable future.

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Soil Associate Representative

3.01

Do you feel that there is enough awareness of ethical issues surrounding fast fashion being covered in the media? Yes and no. It’s difficult to say because we have come a long way ethically since the disaster at rana plaza. Many steps have been made to better the improve fashion industry. However, there is still a long way to go in terms of brands practicing sustainability. How are you addressing the issues? Well being the country’s leading certifier we know our consumers want something they can trust. We as an association are identifying businesses that are doing better for the plant and creating awareness around them. People are becoming more aware of the issues that are affecting our plant and they want to do something about it. With the certification come personal services whereby businesses are assigned a dedicated Certification Officer who can help you apply for and maintain your licence. What do you think brands can do moving forward? In order for businesses to thrive in the current market consumers need to know where their products come from and how they are being made. That transparency is very important in building consumer loyalty. When consumers buy from honest brands they have that reassurance. ECONSIOUS is a B2B service whereby fashion brands are able to get a stamp of approval for taking action into bettering the planet. With consumers engaging with transparency do you think this is a viable business plan? I think it’s a great idea. We offer certifications for the health and beauty sector and fibre but not specifically for fashion brands so there is definitely a gap in the market for a service to cater to that need. Not many people know that affects fashion can have on the planet so it’s important for people to understand that. Also, if your service mean brands would evaluate their production strategy then that’s even better and we are step forwards into preserving the planets resources. Do you think there is growth potential in the idea? Definitely, people are so influenced by fashion and it’s a fast growing industry so they’re so much potential moving forward. Brands can only become more sustainable from here on out as the industry is detrimental to the planets resources. The industry will not last if changes are not made so brands and consumers have to work together to change it. Lastly, what do you think the fashion industry is missing and how can it be better improved in regards to sustainability? Awareness. Even though there are many sustainable brands coming into market people still lack knowledge of what is happening to the planet. This is not a one man job it requires everyone to get involved and take action, but it begins with brands. They have the power to change the views of their consumer. They have to work towards making their businesses more sustainable they will not last otherwise.

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STELLA CLAXTON INTERVIEW TRANSCRIPT

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Interviewer: What are your opinions of the state of the fashion industry in regards to sustainability? Stella: Overall the industry has got itself into a bit of a mess. Due to the way the industry is so competitive now and over the last 20 years. Things have become progressively cheaper and the volume has gone up so that’s the biggest negative effect on the industry. So we’ve had this move for the last 20 to 30 years two big things have happened one is the move of production in developing countries and how that’s made supply chains very large and fragmented. People have become removed from where retailers are based and consumers are based and that’s caused lots of issues with the supply chains complexity for lots of issues to be hidden. It’s not always that people are trying to hide things just that it is very complex. I worked for a manufacturing company in the UK and I was a designer but we had a factory and they are not always horrible places. There was a whole community around working in the factory, we were supplying UK retailers and they could come up and see the factories at any time. They used to come up on virtually weekly bases and they knew what was going on and it’s much more transparent and much simpler. The supply chain was much more contained where the products was being sold, retailed. This whole drive of low prices is the nature of the industry which has obviously trickled down into producing in developing countries which has created a lot of issues, in terms of how people are treated in competitiveness which we can’t get away from and becoming more and more intense. The competiveness has driven the speed and put pressure of price which has raised the volume. Both the amount of resources we’re using and wasting in many ways is dangerous. If we’re not careful in the next 20 to 30 years we’re going to have issues replenishing the natural fibres we use. There are also issues of increasing the environmental legislation that is happening throughout the world which regulates the environmental aspects. There isn’t a way of recycling the resources affectively. There’s only so far you can go before it ends up in landfill. Interviewer: Do you think there is enough awareness surrounding these issues? Stella: I think there are two things some people aren’t aware and might, a lot of people are aware but don’t care. Some people don’t care enough to do something about it and businesses find it difficult because they’ll say that consumers are not asking for it or are not interested in it which is partially true. But businesses have created the situation and they’ll say consumers have created the situation by demanding cheaper clothing but actually the businesses are responsible for trying to gain a competitive advantage by focusing on price and creating the desire. Ultimately we don’t by clothes because we need them we buy because we want. You can’t blame the consumer because they are bombarded with it and now especially with social media. It’s very hard to stop this sort of cycle. But businesses are starting to engage and apart from anything they have to because they have certain targets to meet over bigger retailers governed by all sorts of regulations on emissions. Businesses have an ethical code of conduct which we don’t know are being managed. But most of them are trying to do something. The sustainable action clothing plan is an initiative that 40% of UK retailers have signed up to whereby governments are trying to influence brands to be more conscious and sustainable. So the government are trying to engage to work with industry to promote sustainability. The easy things for business to engage with are energy saving concerns within the management of their factories. Another thing is looking at the raw materials used and the environmental impact so there is something called the material sustainability impact which rates certain fibres and there is a way of monitoring the materials. You can quantify how much cotton is used so that what businesses are doing at the moment.

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M&S want to have each product have a plan A attribute by a certain date and a certain year so they have a target to achieve that. So it could be that it is made in an energy saving factory, it could be that it’s made with sustainable cotton but that’s the target they are working towards. So they see it as something they can put on the product saying that they have plan A attributes. So I’d have a look at what they’re saying because I think it can help you. Interviewer: So the idea that I have come up with is having a service whereby businesses can gain an ethical stamp of approval for taking action to bettering the planet. I just wanted to get your opinion on the idea and if you think it’s a viable business plan? Stella: How would you make money though? What’s the business aspect of it? What is the service you’re providing? There are a number of companies you may not be aware of like made by they are a sustainability consultancy who is working with WRAP and engaging with smaller businesses who haven’t got the big infrastructure and knowledge on sustainability. So made by help brands strategise in being more sustainable and there is something they can report this to call a score card so every year they can measure certain things. It’s all about measuring impact and reporting in it and giving it a score which can be used to promote like on a swing ticket or whatever. I don’t know if that’s the kind of thing you are talking about but brands can pay a fee for your service? Interviewer: Yeah, it would be on a subscription basis whereby brands subscribe to get the service to get certification. Also, it would have a business to consumer aspect so they’d be an app where consumers could actually scan the barcode of an item and tell then the process of which there clothes are being made, and information on what brands are doing to better the planet. Stella: Yes, I think that’s a good idea. You need to understand if your brand will consult people because you would need to employ people that know about sustainability to be able to advice people. Or are you the person that creates the customer link with businesses by creating campaigns and marketing ideas because that might be really useful. What businesses need to understand is what is the right way to talk to consumers because its missing as its not a sexy part of the fashion industry unfortunately, so people don’t invest in it. There is definitely a gap there on engaging consumers with these issues so it thinking about making it mainstream. Currently it is starting to happen because it has to, at some point we are going to run out of resources. The competitive advantage may be how your service can communicate what you are doing. So it would be interesting to understand how the smaller brands would do it as we know brands like M&S and H&M have big marketing campaigns surrounding theirs.

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Interviewer: It’s just that lack of awareness for consumers because I don’t think they completely understand what it is or what it means. Especially with brands like H&M with their conscious collection, does it mean the rest of the brand is unsustainable? It’s all very confusing. Stella: It would be interesting to see how you would market it. You could start from the point of saying ‘this is happening..’ and ‘these are the ways people are reporting on it…’ You need to have something you can measure before you put it on a swing ticket or an app. You have to be able to measure and say that these are the criteria and have something behind it and then you have to define what people are reporting on so its things like fibres, factories, recycling, and organic produce. Is that what you’re thinking? Interviewer: Yes, as a young person living today thinking about my own shopping habits, I buy what’s cheap. But if there was more awareness brought to the fact that you can consume products that are not good for the world in a way that was interesting would be more affective. I previously done a few focus groups on this and people said it’s not marketed in a way that we care about it. I wanted to find a sense of differentiation so finding a way to market these issues but in a way that’s engaging for young people as they are pushing this generation forward. Stella: This is what you’d have to think about is the purpose of your service to drive sale because that would make it self-defeating? Interviewer: No, if consumers bought an item from let’s say ASOS with the featured stamp of approval they are engaging with what’s happening and responding to the issues that are happening in the world. Stella: That’s a good argument. Yeah. No I think that’s right. Interviewer: Do you think it’s a viable idea? Stella: Well I certainly think that there is room for improving the way we communicate to young people about it. But it’s not only young people that lack knowledge it’s a lot of older people too and they just as bad in terms of their buying habits. Not all young people are consuming fashion and it is very easy in the context of young people to feel surrounded by it. For some people things lasting are important for people on a budget. But for some young people it wouldn’t even be on their radar and they are driven by price and quality. So when people say we have to educate people well actually to me it’s the business have to take responsibility. The problem is in the past it’s been about an education thing so consumers are made to feel like they are being told off or criticised for doing it. You don’t want to make consumers feel guilty about shopping being something is recreational. So finding the right way of engaging with people is a great idea. There is a lot of research showing that millennials are much more caring about the environment which is not coming through in the way they are buying

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Interviewer: Yeah that’s what I really wanted to engage with. Asking people around me on their opinions they said it would be great knowing that you are consuming something that is benefiting the world making it a bonus. So you’re buying habits are staying the same. Respondents in my focus group stated that they did not want to shop in sustainable brands but shop in brands that they already know. If those brands were engaging with the issues that are happening right now it would be a bonus. Stella: Yeah I completely understand. Have you looked at what high street brands are doing in terms of sustainability? Interviewer: I haven’t done too much research yet but I’ve started to look into some. But that’s the next part of my research is to look into what brands are doing now. Stella: Yeah, I think it’s a good idea. Look at what brands are doing now. It would be useful for you to look at the WRAP website and look at the sustainable clothing plan as there is a list of retailers that have signed up to them. I’d have a look at the retailers that you were bought to from your focus groups. Try and dif down and find if they have annual reports. Interviewer: Thank you for helping, I haven’t got any further questions. You’ve made me away of many things I didn’t know about so thanks you. So to sum up I wanted to know if there is a gap in the market for my business because you have a lot of knowledge surrounding this. Stella: I certainly think there is a need to engage with consumers. Also read ‘shaping sustainable fashion’ and they have a both in there about promoting consumer awareness. But I think it’s a great idea, good luck with it!

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4.0

Potential Licensees

Global Fashion Standard Mark â&#x20AC;&#x201C; Fashion brands demonstrating commitment to ethical trading ASOS New Look Next Gap Monsoon Primark H&M Jack wills River Island Fat face Whistles Global Ethical Standard Mark â&#x20AC;&#x201C; Fashion brands ethically sourcing and producing products. Krochet Kids Mayamiko Everlane Fair Trade winds Mata Traders Patagonia Apolis Nisolo Madefair Noctu Symbology Fibre Athletics Sseko Shift to nature People Tree Wallis Evera Global Organic Standard Mark - Fashion brands producing without synthetic chemicals (Organic) Elle Georgia Visible clothing Cock & bull menswear Lowie Nature shop Bibico Sea salt Cornwall The white T-shirt Co Kailique Mia Bambina Brain Tree organic clothing Eco outfitters Super natural Silver stick BohoHemp

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financials.

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All quotes were confirmed by representatives of the businesses and used within the financial section of the report.

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