CONTENTS
1. Mission Statement 2. A Biography of Barney’s CEO 3. Company overview 4. Marketing Strategies 5. Target Customer Profiles 6. Competitive Analysis 7. Trend Report 8. Master Buying Plan 9. Assortment Buying Plan 10. Store Buying Plan
MISSION STATEMENT Barneys New York is the cutting-edge luxury specialty retailer renowned for serving the most fashionable consumers in the world through innovative e-commerce and a curated storefront experience. It shares the spirit of urban savagery between the store and the customer.
URBAN SOPHISTICATED LU SOPHISTICATED LUXURY E MODERN SOPHISTICATED L URBAN EDGY LUXURY MOD
UXURY MODERN URBAN EDG EDGY URBAN MODERN EDGY LUXURY MODERN EDGY MO DERN URBAN SOPHISTICATE
“I F YO U A R E A G O O D P E R S O N A N D YO U WO R K H A R D, YO U G E T TO G O S H O PP I N G A T B A R N E Y S . I T ’ S T H E D E C A D E N T R E W A R D .” — S A R A H J E S S I C A PA R K E R , TO VA N I T Y FA I R
CEO
I’M PROUD TO BE A NICHE. -Mark Lee
Since taking the position in 2010, Mark Lee strives to lead the luxury specialty retail market with Barneys. His strategies are as precise as his demeanor: With Lee’s help, Barneys has reduced its investor debt by $540 million and has replaced low-revenue stores with specialty boutiques. He has also improved the e-commerce site to compete with luxury online retailers like Net-a-Porter as well as their traditional brick-and-mortar competitors. Lee directed the physical store transition from department setting into a luxurious gallery space for curating beautiful, well-designed goods. Down to earth yet focused, he wanted Barney’s to remain local and true to their urban roots. They are now re-opening their Chelsea flagship store, whose pictures you will see scattered throughout this booklet. The brand shows its welcoming attitude to new technologies and innovative ideas through its architectural store space. Because of Lee, Barneys continues to grow with the large global luxury phenomenon that keeps getting bigger and bigger.
HISTORY OVERVIEW SCOPE & SIZE Founded in 1923 by Barney Pressman, Barney’s New York began as a 145 square foot men’s suiting store. Despite the Depression, he and Fred Pressman agreed to never sell low-end merchandise. They were the first American retailer to carry fine Italian suits from Giorgio Armani, and their taste for edgy designer brands is still carried on today. Only in 1986 did they introduce women’s clothing into their selection. Barneys owns two flagship locations in Manhattan: one on Madison and 61st, and their newly reopened Chelsea shop on 7th Ave and 16th St. They have a total of 27 stores in the US since their national expansion in the 1990s, including their smaller, trendier CO-OP boutiques. No matter what state, they are found in bustling cities like Phoenix, Austin, and Los Angeles, and even Tokyo, Japan. Priding themselves on extravagant windows displays and locally held events such as Artisan Day, Barney’s provides a grounding storefront that ensures luxury and locality wherever you find them.
STORE LOCA TION / FLAG SHIP
SEATTLE , WA
SAN FRANCISCO , CA LAS VEGAS , NV BEVERLY HILLS THE AMERICANA AT BRAND SANTA MONICA THE GROVE
, , , ,
CA CA CA CA
SCOTTSDALE , AZ
CHICAGO, IL
COPLEY PLACE , MA MADISON AVENUE , NY DOWNTOWN , NY BROADWAY / UPPER WEST SIDE , NY BROOKLYN , NY PHILADELPHIA , PA GEORGETOWN , DC
STORE LOCA TION / OUT LET
NEW YORK / CENTRAL VALLEY RIVERHEAD CALIFORNIA / CABAZON CARLSBAD CAMARILLO LIVERMORE HAWAII / WAIPAHU
ILLINOIS / ROSEMONT MASSACHUSETTS / WRENTHAM FLORIDA / SUNRISE VIRGINIA / LEESBURG
NEW YORK / BROADWAY WHITE PLAINS CALIFORNIA / COSTA MESA GLENDALE LOS ANGELES SAN DIEGO FLORIDA /. AVENTURA MIAMI BEACH GEORGIA / ATLANTA
ILLINOIS / CHICAGO MARYLAND / CHEVY CHASE MICHIGAN / TROY NEW JERSEY / HACKENSACK TEXAS / AUSTIN HOUSTON
STORE LOCA TION / CO OP
BUSI NESS INNOVATIVE OMNI-CHANNEL APPROACH
STRA TEG IES
Gallery-like storefronts showcase product and brand aesthetic, providing customers with an enveloping visiting space. The website and mobile app provide ease-of-use to shoppers and provides shipping to their traveling consumer. Same-day shipping is available for consumers in New York City, providing further convenience. The Window features editorial content that shoppers can browse to make educated purchases, blurring the line between content and consumer. In-store restaurants feature this and their app on digital tables and mobile tablets. Their e-commerce venues log user behavior to gather merchant data and customize website feed according to the user. Emails will also be personalized according to shopping habits of the user.
Updated storefronts, POS, and client database to give customer’s cleaner, modern “gallery� experience Knowing the market : operating in financially wealthy cities Operates large flagship stores, small co-op boutiques, and e-commerce model Provide Made-to-Measure clothing service Simpler marketing messages Focused on accessories in harsher economic climate, ability to incorporate pieces into existing wardrobes Aggressive worldwide expansion to suit a growing global economy E-commerce site logs user behavior for customization purposes Digital tables and mobile tablets in the restaurants Personal, tailored emails
CUSTOMER PROFILES
THE INNOVATOR
PRIYA CHOPRA AGE 32 A sporty, fearless Harvard business grad in NYC for her own rental fashion startup. She loves atheleisure and incorporating menswear into her wardrobe, nor is she afraid to try new trends. Her favorite newsletters are i-D Magazine and Womens Wear Daily.
THE EXPERIENCER
JOON PARK AGE 24 Originally from a New Jersey suburb, works as a freelance graphic designer and parttime retail associate at Supreme. He has an eye for luxury and will occasionally treat himself with key designer items (that he’ll photograph for his fashion blog).
THE ACHIEVER
CAMERON RUPPERT AGE 40 A senior lawyer at Sullivan & Cromwell. Likes to travel for leisure and collects art as a hobby. He likes to stand out from his coworkers and neighbors in the upper east side with fun, youthful accessories during casual Friday.
Barney’s New York focuses on their customers through the use of updated technology In-store and online. (The Window + personal, catered e-mail) Creates and sustains a personal connection with customer (Won 2015 Customer Engagement Award from Retail TouchPoints) Carries around 1800+ distinctive brands, exclusive small designers from around the world, catered to their urban customer’s taste
Exclusive connection with young and new designers, provides outlet for upcoming designers to have a voice in an extremely competitive market Facilitates highly desired product debuts (hosts opening receptions) Hosts events like Artisan Day to engage with customers Millennials are an expanding luxury market as they come-to-age. In Manhattan, they are more found in the downtown area near the reopened Chelsea Store.
S W O T
S W O T
Return policy is 30 days with tags, which is shorter than most luxury retailers. Google search results provide consumer insight into past racial profiling, although those specific instances were handled and addressed well through press interviews.
Barney’s has three main direct competitors with a similar target market: Bergdorf Goodman, Saks Fifth Avenue (on ground) and Neiman Marcus, Net-aporter (online) Indirect competitors: Luxury online rentals (Rent the Runway) promotions, and discount stores (eBay, Amazon) snatch customers from buying and owning luxury goods
COMP ETITOR ANA LYSIS
BRICK AND MOTOR
Strong luxury brand portfolio known for its strong customer loyalty program NM has discount stores and 28 Last Call Clearance Stores scross the country Has a well developed online store and “ THE BLOG” and “InSite” “The Heart of Neiman Marcus” charity for Art education Opened new store in Manhattan’s West Side and architecturally inspired storefront in Long Island. Hope to rebrand image to suit growing customer needs.
Edgy, artistic store in the SoHoChinatown Manhattan area that carries unique brands that range from commercial to luxury. Hosts events that feature local artists and innovative store displays to gather social media attention.
Well Known and established luxury retailer Wider price range: from top designers to budget friendly lines Online pricing not consistent with in store pricing
Strong online and social media presence.
Geographic advantage - has 5+ stores outside US
Carries in-house brand of menswear and womenswear. Features brands from visiting countries.
Similar scale and mode as Barney’s It has 40 upscale retail stores around 20+ states, at the same time it has has a private label and small stores in chic vacation spots (similar as Barneys’ boutique)
Garners a lifestyle through their product selection of home goods, accessories, clothing, jewellery, beauty, and magazines.
Focuses on accessories and womenswear with an older target
COMP ETITOR ANA LYSIS
ONLINE SHOPPING
Now a merged company between Yoox and Net-a- Porter and owns Mr. Porter, a luxury online menswear shop High social media presence on social media International / Global shipping Relatively new, opened in 2000 Great Customer service with style advisors Can not connect to customers that do not use e-commerce or online shopping Well designed in-house developed app and blog app TheNETSET, a shoppable social media app that records data from its users about shopping
Over 400 established and emerging designers Deliver to over 170 countries and offer 24/7 advice through MyStylist UK base online store however 70% of the business is now outside of UK Can not connect to customers that do not use e-commerce or online shopping
hats KEY PIECES: SNAPBACKS FELTED FEDORAS City stealth is a big atheleisure trend being supplemented by hats that shade the eyes. BEANIES BOAT HATS Outdoor accessories become trendy as the allure and romance of the forest and high seas inspires rugged materials such as shearling and weatherproof leathers. Textures are pulled from naturally occuring patterns from manufacturing imperfections, hand weaving/knitting, and felting
scarves KEY PIECES: FRENCH TIE SCARVES FRAYS AND TASSELS PLAID AND HOUNDSTOOTH ROMANTIC FLORALS
Perfect for layering during mild winters As seen in 2015 and probably future years. Scarf patterns are also varying in colors and prints, oftentimes being oversized in pattern.
bags KEY PIECES: BACKPACKS TOTES MESSENGERS BRIEFCASES/BIKE BAGS POUCHES Functional details in bags are made to carry necessities from everyday commuter essentials to camper needs. Vibrant colors make bags stand out in urban adventures and city environments. Performance materials and metal zips continue the atheleisure trend, while luxe leather goods are seen in men’s clutches (pouches) with raw edges.
eye wear KEY PIECES: HIGH TEXTURE GRAPHIC SHAPES OVERSIZED FRAMES UNISEX STYLING Men’s sunglasses are deviating from standard aviators and wayfarers. Mod shapes and brightly tinted shades bring color to staple wardrobe outfits. Naturally textured frames pull inspiration from the earth, while reflectors continue the trend of city stealth.
TECHNOLOGY TRENDS
manus x machina As technology becomes the most prominent topic in fashion, some designers opt to move in the opposite direction. Handmade goods have become nouveau luxury. As a reaction to mass production, people value customization and the amount of time spent on craftsmanship. The Metropolitan Museum of Art is showcasing The Costume Institute’s spring 2016 exhibition Manus x Machina: Fashion in an Age of Technology. Manus x Machina will challenge the conventions of the hand/machine dichotomy, and propose a new paradigm germane to our age of digital technology.” Designers in the exhibition include Sarah Burton (Alexander McQueen), Karl Lagerfeld (Chanel) and Miuccia Prada among others, proving the industry and consumers’ preference for the luxury of handcrafted treasures.
artisan culture This trend is a continuation of the maker revolution. Fashion is finally turning into a pull industry. As the power of the production is placed in the hands of the consumer, they are more demanding of customer made goods with a touch of creativity and luxury. The innovation in technology and impact of social media have changed people’s buying behavior. They want instant gratification. If forced to wait, the expectations are higher for the designer. Handmade goods have become the epitome of customization-- imagine having a pair of sunglasses made specifically for your face, or a hat felted exactly to the size of your head. Craftsmen are held to a higher esteem, no longer seen as laborers but skilled technicians who contribute to their local communities. Luxury is being able to give back to those crafters while supporting your local economy.
MEN’S ACCESSORIES
CORPORATE PLAN (1)
Accessories account for 7.2% of Barney’s brick and mortar sales out of a year ($600 million). We split that number in half for a six month buying plan. We planned a 15% increase from last year’s category sales due to overwhelming trend popularity of men accessories. (2)
The inventory turnover is higher than average due to the above. (3)
Sales reductions are lower than the usual rate men’s accessories are less likely returned than are extremely popular items for fall/winter 2016, of product will be considered more precious to
(25%) because clothing, they and the type the consumer.
(4)
Sales in September are slightly higher than August due to pre-fall and back-to-school shopping. They are tremendously higher in November and December due to holiday shopping, and made to consider the slower January sales of most retail stores.
Retail Buying Simulation 6 Month Buying Plan Fall 2016 (Corporate) Barney's New York Focus Product Category: Fall 2016 Plan Net Sales, Fall 2016 Est. Net Sales, Fall 2015 Plan % Last Year: Average Stock, Retail: (2) Inventory Turnover: Planned Reductions, $: (3) Reductions % Sales: Plan IMU %: (1)
Men's accessories (Scarfs, bags, hats, eyewear, belts) (000's) $44,735 $38,900 15.00% $24,926.17 1.79 6,710.25 15% 60.87% (4)
Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost
August 5368.2 12.00% 23620.1 4.4 25767.4 671.0 10.00% 8186.5 3206.7
Retail Buying Simulation
September 7157.6 16.00% 25767.4 3.6 24425.3 1006.5 15.00% 6822.1 2672.2
Fall 2016 6 Month Buying Plan (000's) October November December 6262.9 9394.4 11183.8 14.00% 21.00% 25.00% 24425.3 28183.1 29077.8 3.9 3.0 2.6 28183.1 29077.8 22009.6 1006.5 1342.1 1677.6 15.00% 20.00% 25.00% 11027.2 11631.1 5793.2 4319.3 4555.9 2269.2
January 5368.2 12.00% 22009.6 4.1 21400.0 1006.5 15.00% 5765.1 2258.2
Fall 2016 44735.0 100% 24926.2 6,710.25 100.00% 49225.2 19281.5
MEN’S ACCESSORIES
MADISON AVENUE (1)
This store is Barney’s flagship, therefore it should expect the most sales out of all the stores (12% of total accessories sales). (2)
The inventory turnover is faster than the corporate plan (1.79) also due to its flagship status.. (3)
September sales in this area are slightly higher due to pre-fall shopping. It is the same as the corporate plan because both were based on seasonal weather in the northeastern United States. (4)
Holiday shopping occurs during November and December, making these sales percentages higher. These months also required more BOM stock to provide these sales. January is usually recorded as a month of lowreceipt flow..
Retail Buying Simulation 6 Month Buying Plan Fall 2016 Barney's New York Madison Ave Flagship Store Focus Product Category:
Men's accessories (Scarfs, bags, hats, eyewear, belts)
Fall 2016 Plan Net Sales, Fall 2016 Est. Net Sales, Fall 2015 Plan % Last Year: Average Stock, Retail: (2) Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %:
(000's) $5,370 $4,670 14.99% $2,584.16 2.08 805.50 15% 60.87%
(1)
Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost
August 644.4 12.00% 2384.3 3.7 2663.5 80.6 10.00% 1004.2 393.3
(3)
September 859.2 16.00% 2663.5 3.1 2556.1 120.8 15.00% 872.6 341.8
Fall 2016 6 Month Buying Plan (000's) (4) October November December 751.8 1127.7 1342.5 14.00% 21.00% 25.00% 2556.1 2932.0 3087.8 3.4 2.6 2.3 2932.0 3087.8 2255.4 120.8 161.1 201.4 15.00% 20.00% 25.00% 1248.5 1444.5 711.5 489.0 565.8 278.7
January 644.4 12.00% 2255.4 3.5 2210.0 120.8 15.00% 719.8 282.0
Fall 2016 5370.0 100% 2584.2 805.50 100.00% 6001.2 2350.7
MEN’S ACCESSORIES
SCOTTSDALE ARIZONA (1)
Because the Scottsdale location is in a slower, smaller urban area, its planned net sales are only 4% of the corporate sales. (2)
The inventory turnover is lower than the average corporate plan of 1.79, yet still high to match the demand for men’s accessories. (3)
Locals in Scottsdale vacation out of town during August due to the high temperatures, and during the summer Arizona is not a popular tourist destination. This results in a lower percentage of fall sales. (4)
However in January, tourists flock to the Phoenix area for warmer weather, which should result in more sales in this month than August.. (5) Despite the high sales in December, receipts will be kept low for the end of the year to welcome new items for the next buying plan.
Plan Reductions % Fall Purchases, Retail Purchases, Cost
80.6 10.00% 1004.2 393.3
120.8 15.00% 872.6 341.8
120.8 15.00% 1248.5 489.0
161.1 20.00% 1444.5 565.8
201.4 25.00% 711.5 278.7
120.8 15.00% 719.8 282.0
805.50 100.00% 6001.2 2350.7
Retail Buying Simulation 6 Month Buying Plan Fall 2016 Barney's New York Scottsdale, Arizona Focus Product Category: Fall 2016 Plan Net Sales, Fall 2016 Est. Net Sales, Fall 2015 Plan % Last Year: Average Stock, Retail: (2) Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %: (1)
(3)
Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost
August 179.0 10.00% 930.8 5.2 1027.5 24.2 9.00% 299.8 117.4
Men's accessories (Scarfs, bags, hats, eyewear, belts) (000's) $1,790 $1,556 15.04% $1,084.62 1.65 268.50 15% 60.87% September 250.6 14.00% 1027.5 4.1 1027.5 34.9 13.00% 285.5 111.8
Fall 2016 6 Month Buying Plan (000's) (4) October November December January 250.6 375.9 447.5 286.4 14.00% 21.00% 25.00% 16.00% 1027.5 1165.3 1253.0 1088.3 4.1 3.1 2.8 3.8 1165.3 1253.0 1088.3 1100.0 37.6 53.7 67.1 51.0 14.00% 20.00% 25.00% 19.00% (5) 349.9 426.0 517.3 349.1 166.9 202.6 137.1 136.7
Fall 2016 1790.0 100% 1084.6 268.50 100.00% 2227.7 872.6
MEN’S ACCESSORIES
ASSORTMENT PLAN
(1)
Accessories account for 7.2% of Barney’s brick and mortar sales out of a year ($600 million). We split that number in half for a six month buying plan. We planned a 15% increase from last year’s category sales due to overwhelming trend popularity of men accessories. (2)
The inventory turnover is higher than average due to the above. (3)
sales reductions are lower than the usual rate (25%) because men’s accessories are less likely returned than clothing, they are extremely popular items for fall/winter 2016, and the type of product will be considered more precious to the consumer. (4)
Sales in September are slightly higher than August due to pre-fall and back-to-school shopping. They are tremendously higher in November and December due to holiday shopping, and made to consider the slower January sales of most retail stores.
OPPORTUNITY STATEMENT
Men now not only care about functional products, they also want to personalise their wardrobes. They are more creatively dressing up, and accessories are the key to elevating any outfit and making it trend-right. As millennials earn supplemental income and winters grow warmer, accessories are key luxury pieces that are perfect for layering. Accessories are no longer basics, they are transitions into a high fashion wardrobe. They are pieces men can experiment with once they find those that reflect their character and style.
#menonfleek
BY
Yours truly,
Tiffany Lu Ashlee Cruz Sophiya Iqbal Stephanie Tszkei Chow