Les Gris by Sydney Barnett

LES GRIS grey is the new green Sydney Barnett, Vicky Ma, Sara Spicer & Panu Choopojcharoen Contemporary Issues in Fashion Merchandising Professor Meeta Roy | Fall 2014 Savannah College of Art & Design Savannah, Georgia

Content I. Executive Summary II. Market Analysis III. Target Customer IV. Product Development & Sourcing V. Customer Engagement VI. Branding & Messaging VII. Conclusion VIII. Appendix

Executive Summary Les Gris, as a company, has been designed around the idea of Reduce, Reuse, and Recycle. As a way of looking to the future, we have designed a method to create clothing from the beginning with sustainability and price in mind, and follow the life cycles of the clothes until the end. While exploring price and manufacturing to see the best alternatives for Les Gris, other companies in current practice of sustainability were researched in attempt to find the right fit for Les Gris. As a company, sustainability is not the only factor being looked into. With a rising active and sleepwear market, Les Gris is looking to redefine what Loungewear in the US market means. Market analysis for the existing two markets was researched and clothes fitting the aesthetic, price, and proper sourcing were created as the introduction line for Les Gris. In order for Les Gris to find success in this market, the company must focus on increasing concerns in sustainability, while increasing the number of sustainable consumers. For the aesthetic of the clothing, Les Gris is looking to thrive off the growing Loungewear trend. Between these two factors customers will be introduced to a new product, they are unfamiliar with, so a high number of website visits and store visits will be important to obtain these goals.

Mission Statement As we experience life in a casual world, busy from day to day, constantly running around, Les Gris finds it imperative to offer clothing to fit and mold around these demands. We strive for our label to never be lazy or time consuming, but offers pieces with design at heart, and sustainability in mind. Values Statement Within our company we value the earth and constantly are looking for new ways to reduce the negative impact we cause, while also considering design key to inspiring others to do the same. Vision Statement It is our hope to expand from California and make a company that is able to offer comfortable and sustainable clothing to the masses in the US, and support finding new ways to make our clothing, production, and distribution less hazardous to the world.

Linesheet

Women Tanktop

Women Shirt

WT#3040 WS#3030 Size S/ M/ L Price $30 Size S/ M/ L Price $37 Fabric 65% recycled cotton Fabric 65% recycled cotton 35% recycled polyester 35% recycled polyester

Men Pullover

Men Cardigan

MP#3010 MC#3110 Size S/ M/ L Price $52 Size S/ M/ L Price $67 Fabric 65% recycled cotton Fabric 65% recycled cotton 35% recycled polyester 35% recycled polyester

Women Pants

Unisex Pants

UP#3100 WP#3080 Size S/ M/ L Price $54 Size S/ M/ L Price $55 Fabric 50% organica cotton Fabric 50% organica cotton 50% recycled polyester 50% recycled polyester

Unisex Shirt US#3090 Size S/ M/ L Price $42 Fabric 50% organica cotton 50% recycled polyester

Women Shorts WS#3070 Size S/ M/ L Price $47 Fabric 65% recycled cotton 35% recycled polyester

Men Pants MP#3060 Size S/ M/ L Price $52 Fabric 50% organica cotton 50% recycled polyester

Men Shirt MS#3020 Size S/ M/ L Price $37 Fabric 65% recycled cotton 35% recycled polyester

Men Shorts MS#3050 Size S/ M/ L Price $45 Fabric 65% recycled cotton 35% recycled polyester

Women Dress

WD#3120 Size S/ M/ L Price $62 Fabric 65% recycled cotton 35% recycled polyester

Target Market Overview

The Target Market includes men and women, in the age range of 20-35 years old, starting in California. Most consumers have yet to start a family, however are considering the future. With an average income of 25K-75K, the consumer works as a young entrepreneur, or include an interest in a creative field. They are constantly taking inspiration from their surroundings, and working to better their business or work life. Because of their busy schedule, not much time is dedicated to shopping so they look constantly for neutrals that are going to be comfortable and easy to pair, while lasting.

Market Size Based on our primary research, the classification of loungewear is very vague. It sometimes falls under the sportswear category but it is mostly classified as underwear/ intimates. Focusing on both of these categories to help define loungewear is very important in the market analysis. Based on the data from Euro monitor (refer to Appendix Chart 1.1), U.S holds the position of apparel industry in the world. In 2013, the retail value for the apparel industry in U.S was $328,747.60 million. The underwear, nightwear, and swimwear category also holds a large retail value of $26,417.50 million. Lastly, the sportswear category has retail value of $81,674.30 million. In the chart below, there is a fluctuation in market shares between these categories. They are both running at a similar pace, where they both decrease in 2010 and then increase in 2011, synchronously. Since 2010, the market share of both categories has continued as a growth trend. The sportswear category shows very rapid growth rate and the underwear classification is comparatively steady. The most recent data from 2013 has shown that the underwear, nightwear and swimwear categories to be accountable for 8.04% of the U.S. apparel market, and the sportswear market being accountable for 24.84%.

See Appendix Chart 1.1 and 1.2

Unique Characteristics, Current Conditions & Trends One of the most important and unique characteristics of the underwear, nightwear and swimwear category and the sportswear category is its functionality. Both loungewear and activewear are designed to provide the wearer some ease within their activities. This explains why their market share has increased or decreased at the same pace. It is very similar to what happened in 1980s, when sport sweatbands, bodysuits and legwarmers were raged throughout U.S because of the aerobics craze (Lauren). After the U.S. entered post-industrialization, the economy started to rely more on service, rather than manufacturing and agriculture. As a result, the working conditions shifted with the economy from manual labor to mental labor. Todayâ&#x20AC;&#x2122;s consumer finds relaxation in going to the gym and other physical activities, which is considered as one of the key success factors that drives activewear sales. Since activewear is so easy to wear and comfortable, consumers not only wear it for exercising but also wear it for many other occasions. From Cotton Incorporatedâ&#x20AC;&#x2122;s survey, 85% of consumers wear their activewear when they are around the house, 65% wear it for running errands, 42% wear it for shopping, and 20% wear it when going out to eat (Morgan). On the other hand, the loungewear industry faced a big challenge of making profit because most consumers are not willing to pay big money for something they would never wear outside of their house. In another words, consumers lack psychological stimulus to confirm purchasing apparel that will not be seen by others.

Overall, in this trend driven society, consumers are constantly seeking alternatives that maximize their productivity; they want comfort and ease. Loungewear and activewear are both the result of the latest trends in todayâ&#x20AC;&#x2122;s society. In chart 3.2.2, it is easy to see that the retail values of these two categories are both developing positive growth and it is not affected by the overall decrease in the apparel market. Chart3.2.1

See Appendix Chart 2.1

Competitive Landscape Analysis Our product is dual-purpose loungewear that will fall under the category between activewear and intimates. We are taking both loungewear and activewear brands into consideration when creating our competitive landscape analysis. Nike, Under Armour and Adidas are defined as the three most favored activewear brands and they also hold the largest market share in the U.S. market. For the intimates/ sleepwear market, we considered Old Navy, Ralph Lauren and Victoriaâ&#x20AC;&#x2122;s Secret because they are the largest retailers in this category. Forever21 and H&Mâ&#x20AC;&#x2122;s massive market coverage and the wide assortment offering, including both loungewear and activewear, will also be considered competitors. Uniqlo and Muji have very similar products and market positions to us, therefore they are also on the landscape analysis. Figure 3.3.1 illustrates the market position of our company with the competitors.

Price High

Intimates/ Loungewear Athletic

Price Low

See Appendix Chart 2.2

Among the competitors listed, we selected five brands to be our major competitors based on their market share, accessibility, target consumer, target market and price. The market share and accessibility was evaluated by parameters including the total market share in the U.S., distribution channels, e-commerce, delivery and accessibility for the residences in California, our target geographical area. Target consumers were evaluated based on their demographic and psychographic characteristics. Based on the ranking for our competitors NIKE, Ralph Lauren, Victoriaâ&#x20AC;&#x2122;s Secret, H&M and Muji were selected to be our top five competitors for further sustainability analysis.

See Appendix Chart 2.2

Sustainability Evaluation

Several factors were taken into consideration when evaluating the sustainability of our five competitors, including the material used, the manufacturing process, packaging and product disposal. See ranking detail in Figure 3.3.3.

See Appendix Chart 2.2

Nike believes sustainable innovation is a core component to their company. They are constantly searching for new sustainable materials. Through their research, Nike has invented the FLYKNIT technique, which works to reduce the traditional working process of cut and sew in the shoe making process. They also started to recycle the polyester from the shoes and turn it into high-performance gear. 19% of polyester used in Nike apparel is already recycled. The transparency of Nikeâ&#x20AC;&#x2122;s manufacturing is incredible, they not only list all of the manufacturers, but also have very specific methods to evaluate the performance of the factories, the overall working culture and employee satisfaction. Nike claims that they have explored techniques on how to reduce the quantity and types of hazardous chemicals in the manufacturing process. They also opened a waterless dyeing facility in its supply chain to reduce the water consumption. In order to extend their product lifecycle, Nike started the Reuse-A-Shoe program in the early 1990â&#x20AC;&#x2122;s, which recycles the valuable materials from athletic shoes to create sports surfaces. However, Nike has not shown any indications of sustainable improvement in their packaging (Nike Sustainability Report).

Similar to Nike, Ralph Lauren focuses on reusing and recycling, but instead of implementing recyclable materials when making their products, Ralph Lauren is environmentally conscious in their packaging. Most of their materials used for packaging are either recycled content or are recyclable after use. When they consider new vendors, they go through an evaluation and approval process in order to start a partnership. Ralph Lauren is also well regulated in the sourcing segment of their supply chain, similar to Nike. They provide specific operating guidelines and request compliance packets from vendors (Ralph Lauren Sustainability Report). Their products are well made and have high quality resulting in a highest price point amongst the other competitors. A minor setback for Ralph Lauren is that their products are non-sustainable. They do not use recyclable or recycled materials for their products and their loungewear category is mostly made with cotton, which is one of the most energy consumptive of natural fibers.

As one of the biggest fast fashion retailers, H&M understands that the shortcoming of making high disposable products is very fatal. However, they still strive to focus on reusing and recycling in their products. According to their sustainability report, 15.8% of their cotton products in 2013 come from sustainable resources, compare to 11.4% in 2012. They also added leather into their materials. H&M focuses on their supply chain management by tracking the performance of their suppliers and establishing a rewards system for suppliers. They audit the manufacturers to see that they properly manage workersâ&#x20AC;&#x2122; workplace safety, wages, rights and take ethical issues into serious consideration as well.

Research shows some indication that Victoria’s Secret started to make their catalogs greener. According to Victoria’s Secret’s parent company, Limited Brands, the paper they use for the catalog will be made out of post-consumer waste (PCW) and FSC-certified paper (Raz). Limited Brands are also using a special carton that they developed with suppliers and material experts. This new carton could hold more merchandise and would be manufactured with about 42 post-consumer waste, recycled content (Limited Brands). However, they are still far behind when being compared to others. They do not consider sustainability as a crucial factor in brand development. Lets not forget the involvement in child cotton laborers in Africa in 2011 (Brit).

Muji is a prime example of a sustainable company, as they focus on being innovative when providing simple, high quality and eco-friendly products. Muji built their brand off of the sustainable lifestyle and have committed to sustainable practices such as renewal forest products, fair trade, recycling and avoiding harmful materials (Nick). They use “many industrial materials as well as materials discarded by others because of their appearance- items that can be acquired in bulk at low cost” (Muji). Muji strictly controls the manufacturing process, all products are made in high quality so that sorting, sizing and polishing steps are eliminated in the process. They have used eco-friendly dyeing for various, natural materials since 2012. Muji is also planning to plant indigo, which would create job opportunities in efforts to improve poverty. They participated the Business Call to Action (BCTA), “a global initiative that aims to support the private sector’s efforts to fight poverty through its core business.” According to United Nations Development Programme (UNDP), Muji is planning to increase the production percentage in Kenya and Kyrgyzstan to improve their economic condition, where the workers will also be trained by Muji (UNDP). Muji’s packaging is simplified, so that waste will largely be reduced and the materials used for packaging are all natural and recyclable (Muji).

Sustainable Price/Accessibility Map Price High

Low Sustainability High Sustainability

Price Low

See Appendix Chart 2.2

Current Sourcing Practices According to Panjiva, there is a total of 191 suppliers of women’s loungewear from over 20 countries. The top suppliers are located in Bangladesh, China, India, and US. While China has the highest number of suppliers (89), Bangladesh is known for exporting the most loungewear products to the U.S. The top three companies in Bangladesh that have the most loungewear exports, within the most recent 6-month period, are Sadma Fashion Wear Ltd., which has about 142 shipments, York Fashion Ltd., which has 94 shipments, and Noorjahan Apparel Ltd., that has 44 shipments. According to Panjiva, there is a total of 191 suppliers for womens loungewear from 20 countries.

China Noorjahan Apparel Ltd.

York Fashion Ltd.

shipments

142

The top loungewear suppliers of womens loungewear are located in Bangladesh, China, India and the United States.

shipments

Bangladesh

United States Asia

The top three companies in Bangladesh that has the most loungewear exports, within the most recent 6 month period are Sadma Fashion Wear Ltd., York Fashion Ltd., and Noorjahan Apparel Ltd.

Sadma Fashion Wear Ltd.

See Appendix Chart 3.1

Independent loungewear companies usually have a contract with the suppliers. For example, Barefoot Dreams, a chic adult loungewear distributor through Nordstrom’s, has three main suppliers from Shanghai. Eberjey, a sleepwear distributor, has two suppliers from Peru (Panjiva). Luxury loungewear companies such as Hanro USA Inc. has suppliers located in the U.K., Austria, and Switzerland. Data shows that most U.S. loungewear brands are importing their products from Bangladesh and China. The reason for this is that these countries are cost effective for manufacturing apparel products and are specialized in the knitwear industry and they are also considered the top two knitwear exporters (Hunter). However, most U.S. companies that offer recycled and sustainable apparel products have their own domestic suppliers and manufacturers. Recover and SustainU provide recycled knitwear products like t-shirts, sweaters and hoodies at the very affordable and a competitive price. A single t-shirt can cost from only $12 to $18 at retail price. These brands indicate that it is possible to manufacture for sustainable loungewear in the U.S. because their products are considered knitwear. Since loungewear is often made from knitted fabrics, there is no doubt that our brand is capable of producing products out of the same materials, recycled cotton and polyester blend, like Recover and SustainU already do. Les Gris will be manufactured within the U.S., in efforts to reduce carbon footprint from transportation, eliminate foreign outsourcing risk and costs, and promote “Made in USA” products.

Current Distribution Channels Data shows that the loungewear industry in North America consists of

See Appendix Chart 4.1

Through research we found that the market is made up of

See Appendix Chart 4.1

Through our primary research, we have found that most luxury and high-end department store websites have their own loungewear or sleepwear categories. While Nordstorm, Dillard’s, and Saks Fifth Avenue categorize their loungewear with pajamas and robes, Bloomingdales and Macy’s have loungewear product lines within their activewear category. Notable brands that high-end department stores carry are UGG Australia, Splendid, PJ Salvage, Eberjey, Barefoot Dream, Natori, Oscar de la Renta Sleepwear, Hanro, Alternative, and Style&Co. Fast fashion brands also offer loungewear products both in-store and online, such as Uniqlo, H&M, Muji, Victoria’s Secret, Anthropologie, Free People, and Gap. Online stores like ASOS, Net-A-Porter, and Gilt also carry loungewear products from various luxury brands and designers. Discount retailers like Target and Kmart also offer sleepwear products both in-store and online at a very low price point. Most of recycled apparel companies are local and they only offer their product through e-commerce websites. However, individual and sustainable brands such as SustainU manufacture products, mostly recycled t-shirts, for non-apparel companies such as The New York Times, Bloomberg, and Ebay Green Team. The sustainable apparel company Recover is also a wholesaler and a retailer. According to statistics, other than the standalone stores, brands often distribute its loungewear products at high-end department stores and online stores. Since e-commerce is gaining more popularity in the recent years, it is possible that our sustainable loungewear line will be distributed mainly through e-commerce because it is more cost-effective for a start-up company. Based on other sustainable apparel companies’ current distribution channel strategies, online shopping is the most popular format to do business. It is also easier for potential customers to purchase products and find out more about our company and the process behind the sustainable loungewear collection. Selling products through brickand-mortar formats like department stores, either concession or freestanding, will also help gain more product awareness and customers. This is also costly and sometimes risky for a start-up business. It is better for our sustainable brand to start off with online format and then move toward brick-and-mortar locations after gaining more popularity and brand loyalty. With this we hope to develop an effective multi-channel strategy afterward.

Factors Driving Future Growth 1. Increasing Concerns in Sustainability 2. Increasing Sustainable Consumers and their Perspectives 3. Emerging Trend in Loungewear 4. Drive of Les Gris Brick-andMortar and E-Commerce

1. Increasing Concerns in Sustainability In the fashion industry, sustainable practices and environmental concerns have increased among businesses and consumers. Companies such as H&M, Levi’s, and American Apparel, have tried to incorporate sustainable or “green” strategies within their products and services. Recently Kering has taken the initiative in their long-term sustainable strategy (Daveu). “70% of all consumers are willing to become sustainable as long as it saves them money; however, the average prices of environmentally friendly products are 7% higher than the normal products. Economic concerns and fiscal issues have hindered many customers from sustainable alternatives” (Cotton Inc). It is important for our brand to be able to offer affordable and sustainable loungewear to the consumers. From our primary research, brands like Recover and SustainU offer recycled basic apparel items that are cheaper than other brands. Perhaps, the process of recycling waste into garments is very cost effective. Not only can we offer great value to our customers, but also promote sustainability though our products as well.

2. Increasing Sustainable Consumers and their Perspectives

Due to the higher disposable income and education levels, niche consumers are usually well informed about environment concerns. They also have more freedom and ability to purchase and make sustainable decisions. According to Cotton Inc. reports, “they are still the main target segment who actively seek out environmentally friendly products.” In contrast to those who are limited by financial issues, they are more likely to purchase mass-market products that are not usually sustainable (Cotton Inc.). However, environmental activism that is not economically motivated has increased in recent years. According to Cotton Inc., one third of the consumers said they would be willing to pay more for clothing labeled as environmentally friendly. In general, more than 95% of all “green” consumer levels, from high to low environmental concerns, primarily “consider fit, style, color, and price to be the key factors driving their apparel purchase” (Cotton Inc.). Most consumers are not solely driven by environmental friendliness. Nevertheless, the greenest consumers, 7% of all consumers, still value environmental friendliness as much as other factors (Cotton Inc.).

3. Emerging Trends in Loungewear In today’s society, major department stores and specialty apparel stores’ websites, such as Barney’s New York and Uniqlo, have their own product categories for loungewear without being combined with lingerie or nightwear (see image below). Also, the concept of combining luxury and comfort together has been one of a major fashion trend since 2010. According to one of the 2012 trend reports by WGSN, many designers started to gain inspiration from pajamas and created garments suitable for both indoor and outdoor activities. In the U.K., Telegraph reported about the 9% rise in pajamas sales from 2009 to 2010.

Today’s consumer has started to incorporate casual looks into the workplace, including pajamas and loose outfits worn outside of their own houses. The trend continued to grow when Marc Jacobs dressed his models in lingerie and pajamainspired outfits at Louis Vuitton’s Fall/Winter 2013 fashion week. Additionally, more designers started to take inspiration of this “comfort” concept into their collections. For example, Stella McCartney, Isabel Marant, and Chloe incorporated jogging and track pants into their Spring/Summer 2014 collections (Real Style Network). Independent brands that focus solely on loungewear products have emerged as time has gone on. Since 2013, a luxury loungewear brand Skin has expanded its retail presence to over 230 stores globally (Monget). This proves that designers and entrepreneurs have seen the market opportunity in loungewear as a result of the emerging and growing trends. According to Euromonitor, the market size for loungewear, including underwear, nightwear, and swimwear, in the U.S. was $24,581 million and has increased about 10.8% since 2008 (see image below). Loungewear will continue to develop into a long-term trend. With the increasing demand of loungewear and numbers of sustainable customers, there is a great opportunity for our brand to establish and cultivate business in the apparel industry. The concepts of both “green” and “comfort” integrated into our brand will differentiate us from the competitors.

See Appendix Charts 5.1-7.1

4. Drive of Les Gris Brick-and-Mortar and E-Commerce Les Gris will have a boutique, brick-and-mortar location in San Francisco, California as well as a presence on an e-commerce platform: www.lesgris.com. Carrying our brand through both formats of retailing will help inform our customer on our product, since research on our product will most likely be necessary because we are launching a sustainable product. For the aesthetic of the clothing, Les Gris is looking to thrive off the growing Loungewear trend. Between these two factors customers will be introduced to a new product, they are unfamiliar with, so a high number of website visits and store visits will be important to obtain these goals.

Target Consumer Based on our research the target demographic will carry a large range of individuals at a younger age. There are differences between the 18-24-age range, and the 25-35 age range. The consumer will find themselves with similar mindsets of the earth, technology, and why they buy how they do. However, what can be afforded and their yearly income is quite different.

Demographics - Age

According to the Boston Consulting Group’s (BCG) article on the Millennial Consumer, studies show U.S. Millennials are people between the ages of 16 and 34. Their studies also show that Millennial or generation Y’s were “taught to recycle in kindergarten, wants to be good to the planet, and believes that collective action can make a difference.” “Instead of making one-off charitable donations in cash or in kind, they’re more likely to integrate their causes into daily life by buying products that support sustainable farming or “fair trade” principles, or by joining large movements that aim to solve social or environmental problems.”

See Appendix 8.1

The sustainable shopper was apart of the Millennial generation raised in upper middle class. They were most likely exposed to more disposable income, meaning they are more aware of product quality. Being raised within the Millennial generation also means that â&#x20AC;&#x153;a generation engaged in consuming and influencing, one that embraces business and government and believes that such institutions can bring about global change, one that is generally optimistic, and one that has often-unexpected attitudes and behaviorsâ&#x20AC;? according to the BCG. They are currently just getting out of college, working to establish a career, or within a consistent career, therefore putting them in more of the middle class.

Demographics - Income, Population, Salary As of 2012 the average income in California was just over 50k per year. (Sacramento Business Journal 2012) Because the target demographic is a majority of younger age, we see differences between the 18-24-age range, and the 25-35 age range. They find themselves with similar mindsets of the earth, technology, and why they buy how they do. However, what can be afforded and their yearly income is quite different. College age and graduate students (18-24) may have some income below 10,000 a year, most are still living off of their parents, or student loans. Most 24-30 year olds are looking to establish a career and find themselves in the 30k-40k salaries. While consumers above 30 have a consistent job or are working their way up at this point making from 50K-75K.

See Appendix Chart 8.1

Psychographic According to C-A Weinberger, a corporate senior vice president and global chief marketing officer at Henkel states “consumers choose to buy for a combination of reasons. One is and will remain excellent performance at an adequate price. In the future, delivering performance that is both based on sustainability and recognized as added value will become increasingly important for consumer choices. This development offers great potential as a driver for innovative products – not merely in the sense of ‘green’ products, but in the sense of offering smarter consumer relevant solutions that link product quality to the shared responsibility of producers and consumers…To address this, we must work more closely with consumers, communicating top performance, the added value of sustainable products and enabling behavioral changes.” The World Business Council for Sustainable Development says in their executive summary on Sustainable Consumption Facts and Trends that the role of the consumer relates to their attitudes and behaviors.

“Consumers are increasingly concerned about the environmental, social and economic issues, and increasingly willing to act on those concerns. Consumer willingness often does not translate into sustainable consumer behavior because of a variety of factors – such as availability, affordability, convenience, product performance, conflicting priorities, skepticism and force of habit.” They also state “To meet the challenge of sustainable development, businesses can help to foster more sustainable levels and patterns of consumption. There is a significant opportunity for business to help consumers choose and use their goods and services sustainably. In order to do so, business must create sustainable value for consumers by supplying products and services that meet their functional and emotional needs – now and for future generations – while respecting environmental limits and common values.” Studies show that in the economic down turn, consumers have moved their shopping habits from smaller boutiques to mass merchants in the effort to find the best deal (Cotton Inc. Rising Prices). Consumers expect low prices because of discounting in recession. Millennials are bringing in more causal attire into the work place, it’s no longer a suit and tie dress code in most working environments in todays society (Forbes Millennial).

See Appendix Chart 9.1

Behavioral

According to the research done by the BCG, “one stereotype: U.S. Millennials are extremely confortable with technology. They are ‘digital natives,’ meaning that they’ve largely grown up with technology and social media, using these new tools as a natural, integral part of life and work.”When it comes to Millennial shopping behaviors they have also discovered “two attitudes that appear to be more life-stage specific: a tendency to live in the moment and to make decisions at the last minute, as well as a desire to leverage the resources of large entities – such as government – to change the world rather than to act alone.” They are also more likely to buy from companies that support a cause. Studies by the BCG show “U.S. Millennials are receptive to cause marketing and more likely than non-Millennials to purchase items associated with a particular cause (37 percent versus 30 percent). Millennials expect companies to care about social issues and will reward those that partner with the right causes.” According to statistics found by Cotton Incorporated’s Lifestyle Monitor Survey in Q1 of 2012, the annual average amount spend on clothes was $684, for average clothing sales. 73% shopped at multiple stores and 68% planned their purchases. But according to Cotton Incorporated’s Retail Monitor survey in 2010 for the past two years, 0.6% of apparel products, and these products were priced 7% high on average than apparel not marketed as not environmentally friendly. “Just over a third of consumers said they would be willing to pay a premium for clothing or home textiles labeled as environmentally friendly.”Based on Euromonitor analysis an aver $2.7 billion was spent on sleepwear alone in 2013 and an aver $9 billion on active wear as well in 2013.

When it comes to disposal of garments, the target consumer is looking for the most sustainable option. First, the consumer must understand the process that the garment goes through. According to the Urban Mind contributor, Alice Payne, “The clearest way is through the lens of life-cycle. Life-Cycle Assessment (LCA) is generally a quantitative tool used to assess the environmental impact of a product from its beginnings (extraction of materials and manufacture) through to outputs (downstream waste, pollution and end-of-life impact).” After the consumer puts the garment through the ‘use phase’, the garment makes its way to the landfill. But since our customer is considered the “green consumer”, the garment will take a littler longer to get the landfill step. “Through downcycling, the garment’s passage to landfill is delayed. The materials used to make it are collected and used to make lower quality products, e.g. carpet underlay. Nike has a downcycling program, collecting old sneaker soles to grind into playground surfaces. When a consumer passes on his or her used clothing, whether to friends, to charity, or through selling them on eBay, these garments effectively enter a new lifecycle. This second life begins, now at the distribution phase, and moves through into another use phase. Potentially, with care and repair, the garment may go onto live many further lives. Upcycling is where a lower quality product is transformed into a higher quality one. In the case of upcycled fashion, existing garments or textiles will be disassembled and made into a new garment. Here the new lifecycle begins at the ‘design’ phase of the lifecycle. Companies working in this way include From Somewhere and Junky Styling” (Payne).

Phase 1:

See Appendix Charts 10.1-11.3

Phase 2:

See Appendix Charts 10.1-11.3

Phase 3:

See Appendix Charts 10.1-11.3

Product Develoment and Sourcing By creating our inspiration and concept boards we were able to create a mens, womens and unisex produt assortment. Based on research we found the proper sustainable materials to convey our concept and how this fabric will impact the environment.

Inspiration

For the first collection, Les Gris found vision in melding the modern world with nature. Following the look of drift wood hand crafted by the sea and comparing to architecture man made found in the modern world. The color inspiration follows this same idea, with an assortment of only neutrals.

Concept

The concept of Les Grisâ&#x20AC;&#x2122; clothing is to allow for comfortable clothing that uses interesting design, to bring in a consumer, and introduce them into the notion that the Fashion Industry can create a more positive impact on the world. Les Gris, from a creative standpoint hopes to redefine Loungewear, as more than just House Attire, as well as, see the clothing complete a full life cycle in a harmless way.

Materials RPET Fine Cotton Fleece 30/1 combed ring spun Fabric Content: Blended and Synthetic - 50% Organic Cotton - 50% Recycled Polyester (from plastic bottles) Weight: 7.2oz / sq yard Made in USA

Jersey Knit (Union Made) Fabric Content: Blended and Synthetic - 65% Recycled Cotton - 35% Recycled Polyester (from plastic bottles) Weight: 5.0oz / sq yard Made in USA

According to Smeader, Ellis, and SanMar Group, these are properties of polycotton blend fabric: Pros Thermal Insulation – Keep body warm Durability – Tear and Abrasion Resistance Light – Medium Weight Medium Thickness Comfort Softness Semi Wrinkle Resistance – Less Ironing Wind Resistance Rain Resistance High Color Retention Low Absorbency – Dry quickly Shrink Resistance Semi Breathable Cons Flammability Less Absorbency

Sourcing Our product line will be manufactured within the US. We found that Royal Apparel is a perfect supplier for us since it offers services that we need to create our loungewear line. For Les Gris, the advantages of manufacturing products with Royal Apparel are: 1.) Made in USA 95% of Royal Apparel’s products is “Made in USA” which can ensure the quality of products, sizing information, and labor practices (code of conduct). Domestic manufacturing provides faster lead-time and turnaround on the order, better communication, and less risk. Having the “Made in USA” label will provide authenticity and quality assurance to the customers. 2.) Professional team and specialization in knitwear Royal Apparel was established since 1992 with longtime experience in US apparel industry. The factory equips with updated production technology providing quality fabrics and finishing. The production team is skilled in tailoring and technical design. The product categories consist of men, women, and unisex as well. Most of the company’s product lines are soft knitwear suitable for casualwear and loungewear, such as tank tops, T-shirts, sweatshirt, hoodies; and moreover, the company offers ranges of fabrication with finest quality. 3.) Sustainability products that meet Les Gris’ need Les Gris seeks to provide a sustainable loungewear line made from recycled polyester fabric and cotton. Royal Apparel offers fabrics that meet our criteria. The first fabric is RPET poly blend fabric which consists of 50% polyester made from recycled plastic bottles, and 50% organic cotton. The second fabric is jersey knit made from recycled polyester (RPET) and recycled cotton as well. Both fabrics are produced through high-quality processes providing fabric hand that is soft, durable, light, and loose-fitting. The prices of production are reasonable and cost-effective. 4.) Private label, custom apparel, and other services Royal Apparel can customize any garment to our specifications. The company also offers wholesale discounts and free freight cost on order more than $250. Other services also include pattern making and grading, low impact dyeing (environmental friendly), garment washing, and dip dyeing. 5.) Customer Services The company has very good customer relation management. The response rate is really quick. The company provides adequate information about fabrications, products, costs, and specifications.

Jersey

See Appendix Charts 12.1-13.3

Jersey

See Appendix Charts 12.1-13.3

Cotton Fleece

See Appendix Charts 12.1-13.3

Jersey

See Appendix Charts 12.1-13.3

Jersey

See Appendix Charts 12.1-13.3

Jersey

See Appendix Charts 12.1-13.3

Cotton Fleece

See Appendix Charts 12.1-13.3

Jersey

See Appendix Charts 12.1-13.3

Cotton Fleece

See Appendix Charts 12.1-13.3

Jersey

See Appendix Charts 12.1-13.3

Jersey

See Appendix Charts 12.1-13.3

Jersey

See Appendix Charts 12.1-13.3

Merchandise The Assortment Plan is composed of five women’s pieces, five men’s pieces, and two unisex pieces. The prices range from $30-$67, following in close price range to one of the competitors, Victoria’s Secret. All the pieces are looser and meant to fit multiple body types, and be comfortable to move around in.

Categories: Women’s Loungewear Men’s Loungewear Unisex Loungewear

Bottoms Mens Shorts MS#3050 Size XS/ S/ M/ L/XL Fabric 65% recycled cotton 35% recycled polyester Barley Price $45 Mens Pants MP#3060 Size XS/ S/ M/ L/XL Fabric 50% organic cotton 50% recycled polyester Price $52

Womens Shorts WS#3070 Size XS/ S/ M/ L/XL Fabric 65% recycled cotton 35% recycled polyester Price $47 Womens Pants WP#3080 Size XS/ S/ M/ L/XL Fabric 50% organic cotton 50% recycled polyester Price $55

Tops Mens Pullover MP#3010 Size XS/ S/ M/ L/XL Fabric 65% recycled cotton 35% recycled polyester Barley Price $52

Mens Shirt MS#3020 Size XS/ S/ M/ L/XL Fabric 65% recycled cotton 35% recycled polyester Price $37

Womens Shirt MS#3030 Size XS/ S/ M/ L/XL Fabric 65% recycled cotton 35% recycled polyester Price $37

Womens Tanktop WT#3040 Size XS/ S/ M/ L/XL Fabric 65% recycled cotton 35% recycled polyester Price $30

Others Unisex Shirt US#3090 Size XS/ S/ M/ L/XL Fabric 50% organic cotton 50% recycled polyester Price $42 Unisex Pants UP#3100 Size XS/ S/ M/ L/XL Fabric 50% organic cotton 50% recycled polyester Price $54

Mens Cardigan MC#3110 Size XS/ S/ M/ L/XL Fabric 65% recycled cotton 35% recycled polyester Price $67

Womens Dress WD#3120 Size XS/ S/ M/ L/XL Fabric 65% recycled cotton 35% recycled polyester Price $62

Impact Measurement 1) 2) 3)

Goal: Waste minimization: Reduce the amount of waste from post-consumer wastes such as plastic bottles, cotton fabric, polyester fabric, and etc. Reduce the amount of natural resources used in manufacturing, such as energy, water, oil. Reduce the amount of pollution (soil, air, and water) resulted from various manufacturing

Waste minimization of natural resources (oil, water, energy) is the ultimate goal for Les Gris’ sustainable initiative. Reducing plastic bottles and fabrics (post-industrial and post-consumer) through our business is our main strategy to achieve that goal. Our sustainable loungewear products made from recycled and organic materials can create various positive environmental impacts. “30% of the world’s PET (plastic) production is used to make bottle” (Anne). According to the US EPA, “32 million tons of plastic wastes were generated in 2012 with 14 million tons being plastic containers”; the weight was equivalent to 50 billion bottles. Making bottle in the US requires “approximately 17 million barrels of petroleum annually” (Pacific Institute) Only 9% of the total plastic waste was recycled in 2012 (US EPA.) Research shows, 63 20-ounce PET bottles can be made into a sweater, and 19 bottles could be made into a large T-shirt. Recycling plastic bottles reduce wastes from landfills. “One cubic yard of landfill space is conserved by recycling 4,050 soda bottles” (NapCor). This can imply that in order to reduce a cubic yard of landfill wastes, Les Gris needs to produce approximately 130 fleece sweaters (double of 65 pieces, since one garment uses 50% of recycled polyester) or 428 jersey tops (double of 214 pieces). If Les Gris were able to sell at least 500 items (minimum production from manufacturer) per styles in one season, it would recycle about 250,000 plastic bottles per year; 61.72 cubic yard of landfill wastes would be reduced as well. According to Patagonia’s Garment Recycling Program report, virgin polyester requires a huge amount of petroleum in the making process. Producing recycled PET (plastic material) “reduces the fuel-based resources needed to manufacture virgin polyester”. A plastic bottle requires at least 5 ounces of oil (1/4 of a bottle’s capacity) (Fox). This also implies that Les Gris’ recycled product lines would save about 1,250,000 ounces or 310.02 barrels of oil. The Life Cycle Assessment (LCA) comparison between the process of making virgin polyester and recycled polyester shows a huge difference. The amount of energy used for DMT manufacturing (chemical used for making raw PET plastic) in producing recycled polyester is 76% less than the virgin polyester. The CO2 emission from recycled polyester is also 71% less then the virgin polyester as well (Patagonia). According to Pacific Institute, 10.2 megajoules of energy and 3 liters of water are required to make 5 plastic bottles. Les Gris would save around 510,000 megajoules and 150,000 liters of water in a year (if 250,000 bottles are recycled).

Customer Engagement For the products of Les Gris, it is important the customer has the right facts about it, and how they should follow up with product in order for the companies life cycle of the garment to be completed. According to a Customer Engagement Analysis, Esteban Kolsky, â&#x20AC;&#x153;level of trust is a key indicator of level of engagement.â&#x20AC;? With that said, in the market of sustainability it is crucial the consumer trust the brand, that way they feel comfortable supporting our business. Customer Engagement also leads to the best marketing, word of mouth, and in the Digital age, that is imperative.

Function Loungewear in the US market is somewhat undefined. What some may see as loungewear, yoga pants and athletic pants, others see as loungewear, Sleepwear and lingerie. Les Gris has the intention of finding the middle, with products that can be worn around the house but also out onto the street. Inspired by a comfortable but busy lifestyle, this is Les Gris loungewear

Distribution Les Gris has chosen to open a small boutique and distribute online as well. It is the goal of the company to make sure the consumer is truly informed about the clothing we offer, and that our values meet with that of our consumer and encourage others to fall into the opportunity to change the way clothes are made handled and then returned. In the US last year, 10.2 % of clothing was sold online, and 39.6% was sold through specialist retailers. (Euromonitor) This allows the engagement of customers, and Les Gris believes that will be crucial for the clothing we are selling.

Care & Disposal Due to the fact that Dyecoo has been able to create waterless dying through the process of dyeing polyester, the care instructions for the garment would be no different from that of a normal garment. With Les Gris’ choice to eliminate the use of waterless dye from the clothing, the company does encourage alternatives to washing machines that use large amounts of water, but the garment is made to sustain this option if chosen. The Kunin Group suggests the following care instructions for poly-blend fabric: Machine Wash Warm Gentle Dry (Tumble Dry Low) Gentle Ironing (Low-Heat) High-Temperature Laundering is permissible Do not dry clean Do not bleach To reduce waste in a landfill, there are several ways that Les Gris’ products can be disposed: Good or Acceptable Condition 1) Donating to a charity 2) Selling to a consignment shop 3) Garage Sale 4) Giving to other people (Unisex line’s benefits) 5) Recycling via crafting *Since our product lines are loungewear, a garment size can fit several body types and sizes. The products would be transferred and interchanged quicker than a garment that only fits on a particular body size. Unlike pure cotton or pure polyester fabrics that can be shredded or liquidized, and go directly under the manufacturing processes (carding/baling and yarn spinning), Les Gris products need a special process in material recycling, since the fabric is polyester-cotton blend. Mechanical recycling is not suitable for our fabric since cotton and polyester have different molecular weight. The fabric itself contains “different chemical composition and physical properties of the two component” (Negulescu). The following steps of chemical recycling are from a report by Zoan Negulescu. The methods are common in poly-blend and synthetic fabrics recycling: The most effective way for poly-cotton blend recycling is to separate the fabric into two components, and convert them into two new substances: Lyocell and PET, via chemical recycling methods.

First step: Cotton is separated from polyester through hydrolysis with NaOH (Sodium Hydroxide) solutions. Second step: The cotton is filtered, leaving a pure PET substance. PET or Polyethylene terephthalate is turned into plastic chips and can be recycled into other products. Third Step: The cotton component goes through processes of washing and bleaching. Fourth Step: The NMMO monohydrate solvent is combined with the cotton to create a new spinable solution. Fifth Step: The solution is then spun into cellulose fiber called lyocell. Lyocell can be recycled into apparel products as well. The fiber is also biodegradable, environmentally friendly, and more durable than any other cellulose fabric With the goal of maintain close relationships with the consumer, and because we are using polyester (a fabric which can be recycled), When a consumer is done with one of our products, if they do not feel inclined to give it to someone else, there will be recycle bins that offer promotions and discounts in store. As well as, online options of free shipping to return the product to the store. From there the clothing will be sent to be recycled, so the fabric may be used again.

Branding & Messaging Les Gris branding aesthetic is simplistic, minimal, yet fresh. With our loungewear designs being sustainable and technical, making sure the presence of our brand was easy to read and understandable was a key component when creating our branding and messaging.

The logo chosen is simple and minimal to reflect the aesthetic of the company and will be featured on Hangtags, Tissues, Bags, and all Labels. The hangtags will have a QR code giving consumers information about the garment by smart phone, however employees will have full knowledge as well. As well as be made from recycled material and printed with Soy Ink. Tissues will be made through recycled paper and printed with Soy ink and will wrap articles of clothing purchased. The labels will be created from recycled and organic fabrics.

Consumer Education & Associated Costs

Consumers will receive information in store, on hangtags, and online, but will also be given a letter with purchase to help the consumer understand the product they are purchasing as well as make sure they understand the companies hope to follow through the lifecycle of the clothing sold. Costs: Hangtag $.90 Woven Label $.14 Tissue $.03 Bag $.20 Letter $.04 See Appendix Charts 12.1-13.3

Conclusion The impact Les Gris wants to have on the environment is waste minimization. The first step is to reduce waste that our perspective consumers are already producing, such as plastic bottles and cotton and polyester fabrics. The second, reduce the amount of unneeded natural resources like energy, water, and oil that is currently used in production. Lastly, reduce the amount of pollution helping to provide a cleaner world for the community. Les Gris hopes to improve awareness of sustainability in their consumer, because knowledge is the first step to change. By offering well made products in soft sustainable fabrics, the company hopes to attract new customers solely on design, and begin to help them understand the impact being made, and how Les Gris and consumers can work to a more harmless production while still enjoying what the fashion world has to offer. By encouraging our customers to pick sustainable clothes, it is optimistic that they will choose to extend this into all aspects of their life.

Appendix

Chart 1.1

Chart 1.2

Chart 1.3

Chart 2.1

Chart 2.2

Primary Research of Competitive Price Brands

Price Range

Median Price

Ralph Lauren (Sleepwear)

$26.00-$125.00

$64

Victoria's Secret (Sleepwear)

$10.00-$428.00

$42

Nike

$29.97-$200

$60

Under Armour

$24.99-159.99

$49.99

$14.98-$59.95

$29.98

$12.95-$34.95

$24.95

$9.90-$19.90

$14.90

$4.76-$24.90

$12.80

$4.00-18.00

$12.00

Muji (Homewear) H&M (Sleep Wear) Uniqlo (Sleep Wear) Forever 21 (Loungewear) Old Navy (Sleep&Lounge)

* The primary research is based on price listed on brands' website * The price range doesn not include the outerwear.

Chart 3.1

Chart 4.1

Distribution Historic Retail Value RSP % breakdown 2008

2009

2010

2011

2012

2013

91.8

91.2

90.9

90.2

89.5

88.6

5.4

5.7

6.0

6.2

6.3

5.4

5.7

6.0

6.1

6.3

Convenience Stores

Discounters

Forecourt Retailers

Hypermarkets

5.3

5.6

5.8

6.0

6.2

Supermarkets

0.1

0.0

Food/drink/tobacco specialists

Independent Small Grocers

Other Grocery Retailers

0.0

86.4

85.5

85.2

84.2

83.3

82.3

Mixed Retailers

38.2

38.1

36.7

35.8

35.0

34.3

Department Stores

23.5

23.3

22.9

22.5

22.1

21.7

Mass Merchandisers

11.8

11.7

10.8

10.3

10.0

9.8

Variety Stores

0.6

Warehouse Clubs

2.3

42.1

41.5

42.1

41.7

41.5

41.3

Leisure and Personal Goods Specialist Retailers

5.6

5.4

5.7

5.8

Sports goods

4.2

4.1

4.2

4.5

4.6

4.7

North America Apparel Store-Based Retailing Grocery Retailers Modern Grocery Retailers

Traditional Grocery Retailers

Non-Grocery Retailers

Apparel and Footwear Specialist Retailers

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