September 22, 2017
prima fila
Prima Fila is a high-end luxury brick-and-mortar that offers womenswear in a wide variety of fashion products such as ready-to-wear, footwear, bags, and accessories to younger women. The store is scheduled to kick off its operation in Spring 2017, and it will be located in Sanlitun, one of the most popular fashion centers in Beijing. The high-end luxury fashion industry is underdeveloped in China, and there is mass opportunity for a well-positioned luxury fashion business to grow, especially when the consumption power of such an economy has significant potentials and the demand has not been well satisfied. Prima Fila is capable of adapting to the market by leveraging on its owners’ expertise, and it will be operated under a limited partnership business structure. The mission of the business is to best serve the Chinese luxury fashion lover and seeker’s need, such as providing them with the access to the latest trends, make exact merchandise or style available to them, and create a sustainable relationship between Prima Fila and its clients.
prima fila
: front row Our company aims a sittig in the leading position in the fashion industry and offer high-end fashion and contemporary designer goods in the Chinese market.
• high-end luxury retailer brick-and-mortar • offers women’s ready-to-wear, footwear, bags and accessories to young women • located in Beijing, China
INDUSTRY OVERVIEW
• Chinese people’s luxury consumption in China accounts for about 10%(28 billion USD) in the world • Chinese people’s overall luxury consumption worldwide accounts for 35% (74 billion USD) of the total amount • Currently, 4 luxury fashion stores in Beijing
Luxury fashion goods have an enormous market in China, especially in the major cities such as Beijing, Shanghai, and Chengdu. According to the 2014 Chinese Fashion Industry Analytical Report, Chinese people’s luxury consumption in China accounts for about 10% (28 billion USD) in the world, which is a very considerable number for a developing country. Moreover, Chinese people’s overall luxury consumption worldwide accounts for 35% (74 billion USD) of the total amount, meaning that the luxury market outside of China has generated more than twice of the consumption in China. Therefore, our business has the opportunity to fill in this gap and attract the consumptions abroad to the local market as long as we can meet their exact demand for merchandise and services. Also, as the global luxury consumption has been pressured by the global economy, the Chinese consumption is less affected. Currently there are only about 4 luxury fashion stores in Beijing, and people go shop at these places mostly due to their big names and classic items. Prima Fila will seize the opportunity to bring more trendy and unique fashion merchandise to Beijing, and allow the fashion lovers to experience the same yet better shopping experience as anywhere else in the world. Additionally, the current Chinese economy is approaching recovery and the younger generation will account for a higher proportion, I expect there will be modest increase in the Chinese luxury consumption in the near future.
The reasons to shop abroad • wider variety of merchandise • lower price
The luxury fashion market in China is not as mature as the foreign market, thus consumers choose to shop abroad to embrace a wider variety of merchandise at lower prices.
MISSION
The mission of the business is to best serve the Chinese luxury fashion lover and seeker’s need, such as providing them with the access to the latest trends, make exact merchandise or style available to them, and create a sustainable relationship between Prima Fila and its clients.
VISION
We envision the business to develop into an iconic fashion name and to eventually expand its existence in other major areas in China, both online and offline.
VALUES The core values of Prima Fila are merchandise accessibility, fashion professionalism, customer loyalty, and unconditional commitment.
Prima Fila’s core values are the cornerstone of our future success. The merchandise accessibility of our business will be achieve by having experienced buyers traveling around the world to bring goods back. After this initial stage, we plan to develop long-term relationships with designers so we can market their products and fashion philosophy among a selective target customer base. Eventually Prima Fila will form proprietary distribution channels after proven its effective business model. As for our fashion professionalism, buyers must have a foreign fashion related educational background with their own understanding of the local market and the international trend. They must also be able to have a good taste while catering the client needs. Moreover, Prima Fila values its customer loyalty and relies on it to grow. We are not simply just a marketplace, but more about forming a culture that share our fashion philosophy with our clients. Moreover, we want to provide just the right merchandise to the right client, thus requiring us to work extensively in acquiring the goods as well as offer them at an attractive price. The entrepreneurs at Prima Fila have great passion for the luxury fashion industry and the business itself, therefore we will grow it in the local market with our unconditional commitment.
LOCATION • the most popular fashion center
Sunlitun Village, chaoyang, Beijing, China
CONSUMER PROFILE
Our company’s target customers are younger women in age between 23 to 36, with annual income of 250,000 CNY (100,000 USD) and above. Also, they are the real experiencers and innovators in the world of fashion, while having the resources to indulge in their strong will for creative expression of style and taste. As a female luxury fashion business owner, I share similar fashion views as well as shopping style with this customer group, and I know that these are the actual luxury consumption force in the local market. It is more effective to conduct business in my zone and with the right customers.
MEET HANYAN
Age: 30 Marital Status: Single Occupation: Editorial stylist Income: 120,000 USD Lifestyle: shopping, fashion blogging, hanging out with her girl friends, night life partying, traveling abroad
Prima Fila’s major competitors in the market includes Lane Crawford, I.T., Galeries Lafayette, and Maria Luisa. These companies were well-established early in the market and have gained great popularity over the years. Most of the luxury fashion consumers go for their big names and classic items. Nevertheless, our company clearly identifies the qualities that we possess as well as the factors that we need to consider in order to succeed.
COMPETITORS • well-established early in the market • have gained great popularity • big names • classic items
STRENGTH of prima fila • focus on the younger • social club • location • modrn style decor
I believe our biggest strength is that we focus on the younger generation. The masterminds of the company comprehend their demand for luxury fashion, and can share many common views as the same generation of people. Moreover, we plan to form a social club in order to have everyone connected both online and offline on a frequent basis, and develop weekly theme nights to share ideas, promote products, and seek feedbacks. In this way, I think clients are really being highly valued and considered as the center of the business. Our location will be another advantage comparing with the big names, as we have chosen Sanlitun commercial area. Most of our targeted customers prefer to shop there, and the infrastructures as well as the commercial neighborhood in that area are better than those around the big stores, which are build at a much earlier time and less modern.
WEAKNESSES of prima fila
• profitability • business coverage
Our weaknesses at this stage are our profitability and our business coverage. Since we are a start-up company, we will bear a significant upfront expense and have to wait a certain period of time to break even. Also, we do not have the economy of scale as the big companies do; thus, we will also need to suffer from less profit margin. In terms of our business coverage, we currently only operates in our physical store, and we will have to go online in order to expand our business coverage.
The opportunity that lies ahead of us is to become the pioneer of the younger woman’s luxury fashion go-to place in Beijing. Since we have a very focused business thesis, we expect Prima Fila to drive this area of fashion and soon develop popularity as well as partnerships with local magazines and celebrities.
OPPORTUNITIES of prima fila
• become the pioneer of the younger woman’s high-fashion go-to place in Beijing • drive this area of fashion and soon develop popularity • partnerships with local magazines and celebrities
THREATS of prima fila • current general economic environment • low barrier of entry
As for the potential threats, the current general economic environment in China is in its downturns, which consumption level has significantly decreased. As consumer discretionary products, luxury industry will suffer a stronger negative impact, so we will need to prepare ourselves to better understand the financials of our business to survive in such a market. Another threat is the low barrier of entry, other people can always come into the business and imitate what we do. But since this is a people business, we are confident about our own professionalism and expertise to both serve as well as manage relationships with our clients.
OUR BRANDS INCLUDES: 3.1 Phillip Lim, Acne Studios, Alaïa, Alexander Wang, Andrew gn, Aquazzura, Balenciaga, Balmain, Chloé, Christopher Kane, Comme Des Garçons, Dion Lee, Finds, Giambattista Valli, Holly Fulton, Ileana Makri, J.W.Anderson, Jil Sander, Jean Paul Gaultier, M2malletier, Maison Margiela, Marni, Nancy Gonzalez, Narciso Rodriguez, Nina Ricci, Prabal Gurung, Rag & Bone, Saint Laurent, Sass & Bide, Sergio Rossi, Simone Rocha, The Row, Thom Browne. The selection will expand with respect to our future development.
STORE INTERIOR
STORE FLOOR PLAN
shoes display
Mannequin Display office
stockroom
shoes display
shoes display
bag display
ready-to-wear
bag display
accessories fitting room
window
window
SPECIAL EVENT INVITATION
prima fila
September 22, 2017
prima fila
LAUNCH EVENT • an event to celebrate the grand opening will take place on September 22, 2017 • partner up with T magazine • must RSVP to get on the guest list • only 40 attendees allowed • free food & drink • free T-shirt • celebrities
September 22, 2017
prima
fila
prima fila
Presented by: SHUANG YUAN