By Tanner Lunetta
Overview High end concept boutique in LA founded by Tommy Perse. Known for mixing high-end streetwear with vintage goods and art. “An independent US retailer of International renown, it has converted sunny California to darker aesthetics with an ocean of black�- BoF.
History:
Founded by Tommy Perse, father of designer
Est. 1969, L.A.
Known for being the first Californian retailer
James Perse, in 1969. to embrace the color black. Boutique's aesthetic is a reflection of Perse's own. Perse's connections with old European families allow him access to pre-owned luxury goods, furniture, and art.
Brand Positioning Stands out from other internationally recognized fashion shops as it provides customers the distinctive moody L.A. vibe. Unique merchandise mix of high-end fashion brands like Christian Dior, Gucci, and Saint Laurent, and streetwear brands like Off-White, Fear of God, and Adaptation. Has gallery feel with vintage luggage, books, art and furniture as well as frequent installation spaces and artist collaborations.
Size of Business:
Employs 45 people. Generates an estimated annual revenue of $6,207,720 a year. 3 bricks and mortar stores located in California in West Hollywood, Melrose Avenue, and Malibu. Online presence is limited to only viewing collections without an e-commerce platform. Customers must email to inquire about prices and purchasing.
Pricing Strategy
Premium pricing strategy that only caters to the wealthiest and the most exclusive customers. Ranked as fifth most expensive store in the U.S; average shopping trip coming out to $2,258. Cater to absolute luxury market segment.
Number of Potential Customers: Approximately 497,699 of L.A's population could potentially shop at Maxfield, whether regularly or for a one-time purchase.
Target Customer
Demographic: Upper Class; Celebrity status College educated Urban lifestyle 18-35 years old men and women Psychographic: Values exclusivity. Quality over quantity. Appreciates culture and art. Cares about public image. Social. Travel often. Behavioristic: Purchases regularly. Strong to absolute loyalty rate. Seeking out something different; rarity. Wants to possess something of significance for others to appreciate. Geographic: Global renown. Metropolitan cities worldwide.
Competitive Advantage Provides customer with one of a kind experience they wouldn't be able to get anywhere else. Unique merchandise mix of high-end streetwear with vintage goods. Encapsulated California-cool vibe.
Macrotrends & Fashion Trends Customers want to have experiences more than material items. Emphasis on health, wellness, and spirituality E-commerce and M-commerce Sustainability Transparency Inclusivity/ representation Rise of UHNWIs Personalization is key Athleisure/casual wear Gender neutrality
Competition Merci Overview: A boutique meets used bookstore meets cafe, Merci was founded in 2009 in the historic district of Haut Marais in Paris. Merci has a little bit of everything including womens and mens apparel, skincare, homegoods, stationery, and art. The shop is famous for their rotating themes every month and being highly Instagrammable. SWOT Analysis: StrengthsPerfect placement in the heart of a historic district in Paris. Provides customers with an experience. Uses Amazon Pay and has strong e-commerce platform. WeaknessesNot as well known as other internationally recognized boutiques. Doesn’t seem to have as strong of a celebrity following. Not able to be seen from street as it is located in a courtyard. OpportunitiesEmploying bloggers or social media influencers to generate more brand awareness. ThreatsLack of m-commerce platform. New concept shops opening in Paris. Market Share: No market share; private shareholders.
Dover Street Market Overview: Dover Street Market is a concept shop founded in 2004 in Mayfield, London by Rei Kawakubo and her husband Adrian Joffe, the president of COMME des GARÇONS. They are known for their installation like spaces and changing the interior bi-annually to represent the season change which is inspired by tachiagari (“season change” in Japanese). Famous for introducing an industrial, anti-luxury feel to the fashion retail world and carrying an interesting mix of high-end and low-end brands. Dover Street Market has expanded to 5 locations including the original in London, and then their expansions to Tokyo, Beijing, Singapore, and New York. SWOT Analysis: StrengthsPossesses a very high level of brand awareness and international fame. Strong social media presence and following. Has an e-commerce platform. WeaknessesWebsite is very overwhelming and confusing. . OpportunitiesStreamlining social media pages to reinforce brand instead of having different pages for each store location. Developing an m-commerce platform. ThreatsNew concept shops opening in London.
Spree Overview: A Parisian concept store established in 2011 by fashion designer Roberta Operandi and visual artist Bruno Hadjadj. Spree’s curation of merchandise consists of hand-selected fashion designer garments and accessories, designer furniture from the 1950’s and 1980’s, and art by selected international visual artists. Described as a “gallery-boutique”, Spree is a reflection of the founders’ passions, and travels, and is part of the international circle of recognized fashion stores. SWOT Analysis: StrengthsTrendy location in Montmartre. Has established e-commerce platform. Run directly by founders. WeaknessesNot as well known as other members of international circle of recognized fashion stores. No membership (for email newsletters etc.) prompt on website. OpportunitiesExpanding into other social media platforms ( Evolving into m-commerce. ThreatsNot as clearly positioned as comparable fashion boutiques. Market Share: No market share; privately owned.
International Market for Expansion: Market: Paris, France: PEST Analysis: PoliticalHighly centralized government that maintains tight administrative control. Terrorism in recent years has caused a sense of instability, negatively impacting the economy. Brexit in 2016 caused political turmoil. EconomicPopulation of 63.5 million. VAT (Value Added Tax) of 20%. GDP is 1.9%. Currency is the euro; â‚Ź1= $1.18. SocialPopulation growth rate is expected to be 0.79% in 2018. Average age of population is 39.5; younger than the average for the rest of France. Food and social life are big part of culture. Biking is a very popular form of transportation. TechnologyLeader in nuclear power technology export. Large health technology research programs for young scientists. Global Retail Development Index: France did not make the 2017 index.
Target Market Alignment: Paris possesses a high number of individuals who are of our target market as well being a destination where members frequent. There are many locations that would generate plenty of foot-traffic from tourism as well as local Parisians. As Paris is a mecca for all forms of art, there would be plenty of locations with similar gallery type businesses that would generate traffic within the target market. Pricing Strategies Alignment: Parisians prefer to purchase luxury apparel and accessories from local boutiques. Possess a higher level of art and vintage goods. Paris has a high level of young, UHNWIs. Attracts a high level of UHNWI tourism.
Customer preferences and laws: Considerations should be made about differing schedules for Parisian employees including longer lunch breaks and more vacation time. Local management team to best understand the Parisian customer as well as limit any language barriers. The French Labour Code is very specific and regulated and needs to be followed closely. France functions on a 35 hour work week.
Market Entry: Entry Mode Initial entryPop-up shop in historic district of Paris, Le Marais. The pop-up will consist of Maxfield’s iconic merchandise mix of streetwear and vintage goods including brands Fear of God, Off-White, and Vêtements. Amongst the streetwear will be vintage designer goods like accessories and luggage that will be available for purchase. The popup will function as a mix between a high-end boutique and an art gallery- two things Le Marais is famous for. Launch timing and project calendarMaxfield’s grand opening will be on November 1st, 2019. This is ideal timing as people are beginning their Christmas shopping and holiday travels.
Project Calendar: January 2019 (1/5) 1st email blast about pop-up shop in Le Marais. February Begin preparations for launch. (2/1) Billboard announcing Maxfield pop-up shop in March. March (3/1-3/8) Pop-up shop in Le Marais. August 2019 (8/1) Email blast about grand opening. September (9/1) Email blast about grand opening. October (10/1) -Billboard announcing grand opening of boutique. -Email blast about grand opening. November (11/1)Grand opening of Maxfield’s Paris location. -Email blast about grand opening.
Store Design Plan
Human Capital: A few marketing individuals will be hired to work with the current marketing team remotely from Paris to assure that Maxfield’s marketing attempts are hitting French trends on time and there are no issues with cultural or language differences. A local Paris management team will be hired to navigate the language barrier and differing laws during the launch and actual expansion. Sales representatives will be hired to work the pop-up shop as well as within the boutique after the launch. They should be fluent in both French and English and be a good representation of the brand regarding style. They will be hired once the boutique’s interior is finished to be trained and assist with merchandising.
Financial Situation Budget, Inventory, Assortment Plan:
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Income Statement:
Inventory Turnover calculation: 420,000/810= 519
Integrated Marketing Plan Integrated Marketing Plan Omni-channel launch plan for global expansion: ObjectivesGenerate awareness and discussion about Maxfield’s expansion to Paris to those who are current customers as well as generate new customers. Make local Parisians as well as travelers aware that Maxfield is expanding to their area. Make people that follow Maxfield on social media aware that they are expanding to Paris.
Budget Billboards announcing pop-up shop and launch -$15,000 February 1st-March 1st, October 1st-November 1st Email Blasts $10,000 1 email per month from January, August to November Pop-Up Shop $150,000 March 1st- March 8th Total: $175,000 Allotted Budget: $180,000
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