PROFESSOR
Alessandro Cannata GROUP
Lilly Brasili Caroline Lowe Tatiana Rappaccioli
EXTERIOR + INTERIOR DESIGNER
Veronica Lloveras
R E TA I L M A N A G E M E N T This course addresses the principles of personal selling techniques, presentation skills, the art of persu asion, negotiating and account-building in the wholesale markets. These concepts are developed through lectures and workshops. Students also lear n the effects of an organization’s culture on t he management process, including decision-making, planning, structure, leadership and defining control, and how these are viewed from a global perspective
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WELCOME
TABLE OF CONTENT
C O M PA N Y O V E R V I E W
S ÃO PA U LO
01
Company History
16
S ÃO PA U LO ( I n t r o d u c t i o n )
02
Company Timeline
17
Areas + Attractions
03
Mission Statement
P O P - U P S T R AT E G Y
03
Size + Scope
18
Location + Timing
04
Current Status
19
Company Formation
05
Advertising + Promotion
20
Construction + Legal
06
Brand Identity
21
Compliance
07
Competitive Marketplace Analysis
22
Hiring
08
Opportunities for Growth
23
Importing, Logistics, and
S T R AT E G I C P L A N
24
Infrastructure
COUNTRY SELECTION
25
Promotional Plan
09
GRDI
STORE DESIGN
10
PESTEL Over view
26
Concept
27
Exterior Fixtures
BRAZIL
-
Salaries + Benefits
11
Introduction
28
Interior Fixtures
12
PESTEL Analysis
29
Cost
13
Demographics
ASSORTMENT PL AN
14
Consumer Behavior
30
Women’s
15
Key Competitors
31
Shoes
32
Men’s
FINANCE CONCLUSION
C O M PA N Y H I S T O R Y
Vince was founded by Rea Laccone and
Vince was founded in a retail climate
Chris topher L aPolice in 20 02, as a prod-
s h a k e n b y t h e r e c e n t S e p t e m b e r 11 th
uc t-focused brand specializing in es-
terrorist attacks. Consumer spend-
sential, upscale pieces for a modern,
ing on apparel dropped, as Americans
c a s u a l , c u s t o m e r. T h e b r a n d o r i g i n a l l y
turned inward in reaction to a new
focused on
fear of the outside world. Laccone and
women’s k nit s, but has now
ex panded to include full men’s and
L aPolice ack nowledge this new retail
women’s clothing, shoes, and acces so -
reality and designed simple silhouettes
ries.
in cozy fabrics to create “the fashion e q u i v a l e n t o f c o m f o r t f o o d .”
L accone and L aPolice envisioned a small fashion company that specialized in high quality basics, designed for an affluent, style-minded consumer who can afford designer fashion, but lives a more c asual lifes t yle. Vince’s s tronges t categories remain sweaters and tees in luxe fabrics and modern shapes. The brand was originally sold only through wholesale, until the opening of the first Vince retail store on Robertson Boulevard in Los Angeles in 2008, and the simultaneous launch of the e-commerce platform.
VINCE TIMELINE
Vince is purchased by t h e M i d w e s t- b a s e d apparel holding g r o u p Ke l l w o o d C o m p a n y.
2006
2002
2008
Vince is founded by R ea L a c c o n e a n d Christopher LaPolice in Los Angeles, as a w h o l e s a l e -o n l y re ta i l e r.
V ince opens its first stand-alone retail locat ion on Robertson Boulev a rd in LA V ince opens its e-commerce plat form www.vince.com.
Ke l l w o o d i s purchased by Sun C a p i t a l Pa r t n e r s i n a leveraged buyout.
Laccone and L a Po l i c e e x i t t h e company with the I P O.
L a c c o n e a n d L a Po l i c e return to Vince in crea t i ve d i r e c t i o n p o s t s to re-align the produc t a s s o r t m e n t t o t h e b r a n d ’s original DNA .
2011
2013
2015
2013
2015
Vince raises $200 million selling 1 0 m i l l i o n s h a re s f or $ 2 0 e a c h i n a n i n i t ial p u b l i c o ff e r i n g , a nd becomes publicly t r a d e d o n t h e N Y SE under VNCE.
V ince total net sales drop from a peak of $340.4 million in 2014 to $302.5 million in 2015. Product assortment challenges are blamed for the dropoff.
M I S S I O N S TAT E M E N T “Vince strives to be a brand synonymous with a modern timeless aesthetic and effortless sophistication, and serve as the ultimate destination for
e v e r y d a y l u x u r y e s s e n t i a l s .�
SIZE + SCOPE STORES 35 Retail Stores 14 O u t l e t S t o r e s W h o l e s a l e 2,500 distribution locations across 38 countries.
LICENSING Licensing Agreement s | Women’s Foot wear Men’s Foot wear
NUMBER OF EMPLOYEES 1, 514 e m p l o y e e s
ANNUAL NET SALES 302.5 Million
BUSINE SS C ATEGOR IE S Women’s Apparel Shoes Men’s Apparel Women’s Accessories
CURRENT S TAT US
C U R R E N T S TAT U S Vince currently operates 35 full-price
For production, the design team
re t a i l s to re s , 14 o u t l e t s to re s , a n d
works with over 30 different manu-
o n e s h o w r o o m i n t h e U S , To k y o , I s -
facturers in five different countries,
tanbul, and Paris. The brand is avail-
with 88% of production occurring in
able in 2,500 wholesale locations
China. The company operates three
across 38 countries, with 42 built-out
distribution centers; two in the US
department store shop- in-shops; 29
a n d o n e i n B e l g i u m. T h e 2 014 A n n u a l
i n t h e U S a n d 13 i n i n t e r n a t i o n a l l o -
Report indicates confidence in the
cations. Vince reported net sales of
ability of these facilities to sup-
$ 3 0 2. 5 milli o n i n 2 015 . 67% of t h o s e
port continued growth. Vince does
sales occurred through wholesale,
not own any physical properties,
w i t h 9 1% f r o m t h e U S a n d 9 % f r o m
and leases space for all of its retail
other countries; and 33% were di-
locations and corporate and design
rec t-to-consumer (including e-com-
headquar ter s. Vince’s information
m e r c e , ) u p f r o m 13 % i n 2 0 11. T h r e e
technology systems are operated by
wholesale partners, Neiman Marcus,
Kellwood, although the Vince sys-
Saks Fif th Avenue, and Nordstrom,
tems are in the process of being
accounted for 45% of wholesale net
separated from the former parent
sales, each accounting for 10% of
company’s.
c o m p a n y r e v e n u e i n 2 0 13 a n d 2 0 14 . To t a l r e v e n u e f o r t h e c o m p a n y f o r t h e f i s c a l y e a r e n d i n g J a n u a r y 31, 2 015 was $3 4 0.4 million. Women’s apparel accounts for 80% of net sales. Vince has existing licensing agreements with outside companies for product i o n o f m e n’s a n d w o m e n’s f o o t w e a r.
C O M PA N Y O W N E R S H I P Brendan L. Hoffman | David Stefko |
CFO
Melissa Wallace | Livia Lee |
CEO
S V P, H u m a n R e s o u r c e s
S V P, M e r c h a n d i s i n g
Katayone Adeli | Marc J. Leder |
Artistic Director Chairman of the Board
Rea L accone and Chris topher L aPolice |
Founders Creative Supervisors
Eight-member Board of Direc tors
C O M PA N Y S TAT U S P u b l i c l y t r a d e d o n t h e N Y S E u n d e r V N C E , a s o f 2 0 13 . Current stock price |
VNCE (NYSE) $5.75 +0.05 (+0.88%) per share To t a l S h a r e s H e l d | 1 2 , 6 9 5 , 2 1 9 Institutional Holders | 111
Parent company |
Sun Capital Partner Corporate family includes 3,223 companies.
ADVERTISING + PROMOTION
VINCE Fall 2015 Campaign
PROMOTION
Promotions are minimal, understat-
The most recent advertising was the
ed, and simple, like the brand itself.
“#VERYVINCE” traditional and social
While Vince did increase marketing,
media campaign for Holiday 2015. The
advertising, and promotional expens-
ads included photos, videos, and in-
es by $2.6 million in 2014, the brand
t e r v i e w s w i t h V i n c e ’s “ m o d e r n m u s e s , ”
continues to remain true to its identity
featured tastemakers and personalities,
with few highly publicized campaigns.
including Jamie Chung and DeMarco
Communication and advertising does
M u r r a y.
i n c l u d e s e a s o n a l c a m p a i g n s , a d v e rtising on wholesalers’ e-commerce sites, direct-to-consumer e-commerce discounts and email blasts, as well as p r o f i l e s o n Tw i t t e r , F a c e b o o k , a n d I n s tagram.
PROMOTIONAL AC TIVITIES 2014 | Marketing, Advertising, and Promotional Expenses Increased by 2.6 million.
2016 | VINCE. E-Commerce 10% Discount VINCE. Wholesalers E-Commerce Advertisement 2016
2 0 1 5 | FA L L C A M PA I G N
MERCHANDISING VENUES STORES VINCE Retail Stores Depar tment Stores Outlet Stores
E-COMMERCE VINCE. Nordstrom, Neiman Marcus, Bergdorf Goodman, N e t - a - p o r t e r,Yo o x , S h o p B o b , B l o o m i n g d a l e s , Saks Fif th Ave.
SOCIAL MEDIA I n s t a g r a m , F a c e b o o k , Tw i t t e r, P i n t e r e s t
Online Free Ground Shipping On All Orders and Returns E-Gift Card, International Shipping
BRAND IDENTITY 01
Brand Identity Matrix
02
Brand Identity Prism
01
IDENTIT Y MATRIX
PERSON
PRODUCT
Interior Appealing +
Effortless styles + Everyday
Welcoming to both genders.
Luxury Essentials.
Timeless, modern
Contemporary
SYMBOL
O R G A N I Z AT I O N
Prestige Brand
VINCE Holding Corp.
Broad
Scope
High Quality Casual Chic Cashmere Sweaters Luxe Basics
Headquarters in NYC Design Studio in LA Global Corporation Public Since 2013
02
IDENTITY PRISM
PHYSICAL
PERSONALITY
Subtle
Simple, understated, and functional
Soft, clean lines Rich textures Muted colors Essential pieces to construct a
luxury in the form of comfort Cashmere hoodie- a staple piece that s u m s u p V i n c e ’s p e r s o n a l i t y
seamless everyday wardrobe
C U LT U R E
R E L AT I O N S H I P
Founded in 2002, a tumultuous
Connects with existing consumers
environment for retailers after the
and reaches out to new ones through
events of September 11th.
wholesale.
V i n c e ’s a e s t h e t i c o f p r e c i s e l y
Rely on modern influencers like blog-
engineered comfort was in part a
gers to promote products and attract
reaction to that time period, as
consumers
consumers turned inwards in reaction to the harsh outside events
REFLECTION
SELF PROJECTION
A go-to for those looking for
Comfortable without being slouchy or
effortless pieces
f r u m p y.
Customers look to Vince as a reliable
Sleek
producer of basics.
Modern Sophistication Urban
Modern Timeless
Understated Cool
SWOT
A N A LY S I S
01
STRENGTHS Aesthetically Recognized High Quality Growth Incentives I n v e s t i n g i n Te c h n o l o g y Strong Relationship with US wholesaler partners.
02
03
04
WEAKNESSES
OPPORTUNITIES
T H R E AT S
Slow Development on E-Commerce
Millennial Interest in Quality
Weak Marketing Strategies
Pour Connec tion with Millennials
Domestic Expansion
to media focused Gen-Z
Insufficient Advertisement + Promotion L ac k Ver tic al Integration Consolidating locations
could compromise appeal consumers in the future.
L u x e - A t h l e i s u r e Tr e n d Recapturing the Vince DNA.
Weak Marketing Strategies Competitor ’s Integrate Virtual Reality Shared Commerce Market Place Questionable stability of European economies.
KEY COMPETITORS
THEORY Contemporary Timeless Fashion HELMUT LANG Edgy Street Wear Modern with Minimalistic Roots. JOIE Casual Comfor table, yet Sophisticated.
R AG & BONE British heritage with directional, e dg y, m o d er n d e s ign. Continuously redefines urban style. A p p e a l t o Yo u n g M a r k e t . International Appeal
JOIE
THEORY
RAG & BONE
HELMUT LANG
PRICE
ACCESSIBILITY
OPPORTUNITIES FOR GROW TH
M A J O R E X PA N S I O N
PROJ EC TE D NE T SA L E S 2 016 - FI SC A L
Store Openings
Net Sales
2 016 | 6 N e w Re t ail Sto re s
SG&A
$290- $305 million
$13 2 - $13 5 m i l l i o n
Gros s M argin - 47% Interest Expense, Approximately Increasing Core Product Offerings
$4 million
Introducing New Product Categories
ENTERING THE EUROPEAN MARKET Opened Paris Showroom during Paris Fashion Week
2 015
Looking to the European Market for aggressive expansion. Paris Germany Austria
INVESTING IN TECHNOLOGY Employee POS Mobile Devices
F i s c al yea r 2 015 a n n ua l re p o r t i n d ic a te d a n o p p o r t u ni t y for ex pansion of the men’s collec tion and women’s p a n t s , d r e s s e s , a n d o u t e r w e a r, a n d i m p l e m e n t a t i o n o f a replenishment strategy for core items to generate future growth. Vince also plans to increase product categories through selec t licensing agreements in areas such as fragrance, e y e w e a r, a n d f a s h i o n a c c e s s o r i e s . A n o t h e r p l a n n e d expansion is the increase of Vince retail stores in the US (Si x n e w s to re s fo r 2 016 ,) a n d ex pa n d i ng i n to t h e European market. Fo r F Y 2 016 , t h e c o m pa ny i s fo re c a s t i ng reve n u e of $290 million to $3 05 million and a gross margin of 47%, primarily from the new retail stores and growth in both comparable store sales and e-commerce.
S T R AT EGI C PL A N
GOALS + OBJECTIVES Improve e-commerce experience and expand direct-to-consumer e-commerce to new markets. Reduce reliance on wholesalers by opening more stand-alone Vince stores in new locations. Strengthening and refining the product assortment so that it is aligned more closely to our original heritage.
D I F F E R E N T I A L A D V A N TA G E V i n c e i s a b o u t l o w - k e y, c o m f o r t a b l e l u x u r y. Well-designed, quality basics.
I M P L E M E N TAT I O N S T R AT E G I E S Advertising campaign through social media, print, and video in anticipation of store opening. I n t e g r a t i n g i n t e r a t i v e t e c h n o l o g y, v i d e o , a n d m e d i a i n the pop-up shop to create a fully omni-channel experience. Improving direct-to-consumer e-commerce by opening to Central and South America, and adding costumer review features to increase costumer engagement. Simplified product line.
COUNTRY SELECTION
G L O B A L R E TA I L D E V E L O P M E N T I N D E X In choosing a strategic location for our pop-up shop expansion, we utilized the Global Retail Development I n d e x f o r 2 0 1 5 p u b l i s h e d b y A . T. K e a r n e y . T h e I n d e x quantifies factors of market saturation, country risk, and market attractiveness, and time pressure to enter market to determine the top 30 countries for retail investment. Each factor accounts for 25% of the total Index score. The scores take into account important d e c i d i n g f a c t o r s i n re t a i l e x p a n s i o n , i n c l u d i n g m a rket maturity and the “window of opportunity� through w h i c h t o e n t e r. We chose four countries from the top 25 listed, b a s e d o n o u r i n i t i a l k n o w l e d g e o f t h e g e n e r a l c h a racteristics and retail marketplace for each one. The chosen countries were China/Hong Kong, Chile, Brazil, and the Philippines. We then researched each country f u r t h e r, u s i n g a P E S T E L a n a l y s i s t o e x a m i n e t h e v i a b i l ity of the retail market and level of consumer sophistication relevant to our brand.
C HIL E | To o s m a l l l u x u r y c o n s u m e r b a s e and not enoug h c onsu m e rs o v e ra l l
PH I LI PPI NE S | Economic growt h but ostenta t ious customer
C HIN A | Too h a rd to m a k e a s p l a s h i n a s a tura te d re t a i l e n v i ro n m e n t a n d c ont i nuous d e v a l u a t i o n o f t h e Ch i n e s e Yua n
BR AZI L | Right consumer and economic opportunity
BRAZIL
BRAZIL
AREA 5.2 million square miles
CURRENCY Real ( BRL = 10 0 Centavos) Exchange Rate 1 BRL = .28 USD
L O C AT I O N
Largest country in South America, occupies two-thirds of the continent ’s entire Atlantic Coas t. Bordered by Argentina,Bolivia, Colombia, French Guiana, G u y a n a, Pa r a g u ay, Pe r u, S u r i n a m e, U r u g u ay a n d Ve n e z u e l a. Climate is tropical in the north, temperate in the south. ‘
C A P I TA L Brasilia
P E S T E L A N A LY S I S Political Economic Social Te c h n o l o g i c a l Environmental Legal
POLITICAL
TECHNOLOGICAL
P r e s i d e n t : M i c h e l Te m e r
Largest e-commerce market in Latin America.
Federal Republic with bicameral legislature. Capitalist system, but with heavy
70 million + people in Brazil have internet access.
government regulation and some state-owned entities.
ECONOMIC
E N V I R O N M E N TA L
Economic reforms enacted in early
Lacks environmental regulations.
2 0 0 0 ’s l e d t o o n e o f t h e w o r l d ’s
Large amount of natural resources,
fastest growing economies. Economy of $2.3 trillion USD Major industries are agriculture, mining, and service. F r e e f l o a t m o n e t a r y p o l i c y.
especially iron ore. Significant spending on energy t e c h n o l o g y, e s p e c i a l l y d e e p - w a t e r o i l drilling. Road system is extensive, but underdeveloped, especially in rural areas.
SOCIAL
LEGAL
Population is 208 million, an increase
B r a z i l ’s h u g e a n d v a s t l y c o m p l e x
of 29 million since 2000.
bureaucracy remains a significant impediment to business activities.
Official language is Portuguese It can cost $1,125 USD in fees to start Strong cultural ties to Portugal, but
a b u s i n e s s , n o t i n c l u d i n g “ B r a z i l Ta x . ”
heavily influenced by African and
Brazil ranks 116th out of 185 countries
indigenous culture.
in “ease of doing business.”
CURRENT POLITICAL AND ECON O M I C S TAT US
O n M a y 11, 2 0 1 6 , t h e B r a z i l i a n S e n a t e
Brazil has been relying on a
confimed the House’s A pril motion to
consumption growth economic model
impeach President Dilma Roussef f, whose
for the past two decades at the ex-
popularity had plummetted amid recent corruption scandals. She has been replaced by acting P r e s i d e n t M i c h e l Te m e r. Rousseff was accused of having manipulated government accounts to hide
pense of capitalinvestment: U n e m p l o y m e n t i s r i s i n g , f r o m 7. 1 % i n 2 0 1 4 t o 7. 3 % i n 2 0 1 5 . High taxes on luxury goods often deterred Brazilians from purchasing l u xu r y i te m s lo c all y.
budget shortfalls.
Drop in the value of the real
Petrobras, the s tate - owned oil compa-
Brazil’s border s.
ny, h a s b e e n i m p l i c a te d i n a l a rg e - s c a l e corruption scandal including bribery of
potentially increasing demand within
Lower value of real will increase the
government officials.
infloux of tourists in Brazil.
A number of high-ranking politicians
The Brazilian government has also
have been tainted by the scandal.
instituted a tax that will apply a fee on credit card transactions abroad. Economy is expec ted to begin a t u r n a r o u n d b y t h e e n d o f 2 0 1 7.
DEMOGRAPHICS
POPUL ATION BY AGE YEAR | 2015
B r a z i l ’s c u r r e n t m e d i a n a g e i s 3 1 . 4 In 2020, 71% of the Brazilian population will fall into the “productive age” range, from ages 15-64.
CO N SU M ER B EH AV I O R
01
Marketing Influencers
02
Consumer Lifestyle
03
C o n s u m e r Ty p e s
04
V I N C E : Ta r g e t C u s t o m e r P r o f i l e
01
MARKET INFLUENCERS
E X T R E M E LY INFLUENTIAL
VERY INFLUENTIAL
S O M E W H AT INFLUENTIAL
NOT INFLUENTIAL
Fa m i l y - Fr i e n d s Recommendations
31.2%
39.4%
25.3%
4.2%
Independent Consumer Reviews
29.9%
38.8%
25.7%
5.6%
TV Commercials
27.3%
34.2%
31%
7.5%
Pr i n t M e d i a
15.5%
36.1%
37.8%
10.6%
In Store Advertising
14.1%
32%
42.4%
11.4%
On-site Booth or Representatives
17.2%
32.3%
38.4%
12.1%
S o c i a l M e d i a Po s t s or Mention
15.8%
30.8%
39.9%
13.5%
Brand Advertisement on Social Media
16.4%
33.9%
39.4%
10.4%
M o b i l e Te x t or Advertisement
10.4%
20.2%
36.9%
32.4%
Internet Advertisement on the Computer
16.4%
29.8%
37.1%
16.7%
Commercial Shown before - after - during Internet Video
16.6%
30.3%
37.1%
16.1%
Outdoor Advertisement
14.9%
31.3%
42.1%
11.7%
Celebrity Endorsements
12.5%
24.4%
32.2%
31.1%
Direct Mailing Advertisement
9.6%
21.1%
44.6%
24.7%
02
CONSUMER LIFESTYLE
CONSUMER BEHAVIOR
Consumers link shopping to social and financial well-being, see it as a key indicator of life improvement. Over 50% of Brazilians say shopping is one of their favorite leisure ac tivities. 4 6% say it ’s the bes t way to s p e n d t i m e w i t h f a mil y. B r a z il a c c o u n t s fo r ove r 1/ 3 of L a t i n A m e r i c a’s tot a l consumer market. To t a l d i s p o s a b l e i n c o m e i s p r o j e c t e d t o i n c r e a s e b y a c u m u la t i ve 3 3 . 2 % i n t h e p e r io d f ro m 2 015 to 2 0 3 0. W h a t s a p p i s v e r y p o p u l a r, o f t e n u s e d b y s a l e s p e o p l e to close large transactions and communicate with c o s t u m e r. Despite economic downturn, Brazilian consumers remain in the top 10 most optimistic worldwide.
03
CONSUMER TYPES
U n d a u n te d Str i ve r P ro f i l e TOP 5 TR AITS Image - Conscious Pleasure - Seeker Impulsive Ambitious
DEMOGRAPHICS 50% Male Most Af fluent Segment A v e r a g e A g e 31 17 % o f B r a z i l i a n C o n s u m e r s
SHOPPING Shop unti l they d ro p
WORK AND SOCIAL LIFE In pursuit of success
L o v e t o s h o p an d e x p e r i m e n t w i t h n e w p ro d u c t s a n d s e r v i c e s
C a re e r d r i v e n a n d A m b i t i o u s
Pref er br a nded g o o d s a n d a re w i l l i n g t o p a y m o re f o r t h e m
C a re d e e p l y a b o u t h o w o t h e r s p e rc e i v e t h e m
F re q u e n t l y m a k e i m p u l s e purcha s es
The pursuit of success often leaves them feeling exhausted and overwhelmed
CONSUMER BEHAVIOR Stay ahead of trends
PERSONAL FINANCE E n j o y t h e p re se n t m o m e n t
Frequently exercise to maintain desired physique
P re f e r t o s p e n d r a t h e r t h a n s a v e extra money
Care about green issues and willing to pay for green goods Highly active online and always have the latest gadgets
O c c a s i o n a l l y re l y o n c re d i t c a rd s to fun lifestyle Consider it important to be well i n s u re d .
Conscientious Optimist Profile TOP 5 TR AITS
SHOPPING
Ec o - c o n s c i o u s
Stra tegi c s ho p p e r s
WORK AND SOCIAL LIFE Active and optimistic
Enjoy shopping but stick closely t o t hei r s hopp i n g l i s t
Va l u e f a m i l y a n d w i s h t h e y h a d m o re t i m e t o s p e n d w i t h t h e m
Always choose quality over quantity
Consider it important to be active in community
But also pride themselves on f i n d i n g g re a t d e a l s
Confident in their ability t o positively impact
CONSUMER BEHAVIOR Thi nk throug h t h e i r c h o i c e s
PERSONAL FINANCE Always plan ahead
Highly concerned with health and nutrition
E x t re m e l y f r u g a l i n s p i t e o f re l a t i v e l y h i g h i n c o m e s
St r i ve t o ma k e e c o - f r i e n d l y c h o i ce s a n d p u rc h a s e s
P re f e r s a v i n g m o n e y t o spending it
Consider technology important for staying in touch
Believe their investments will have long-term value
Thought ful Frugal Engaged Future-oriented
DEMOGRAPHICS 51% M a l e Te n d t o l i v e w i t h a s p o u s e o r par tner A v e r a g e a g e: 3 5
21% o f B r a z i l i a n C o n s u m e r s
Str e s s e d A s p i r a n t P ro f i l e SHOPPING O p e n -m i n d e d sh o p p e r s
WORK AND SOCIAL LIFE S t r u g g l i n g t o a c h i e v e st a t u s
Indecisive
Brand agnostic
Conflic ted
Willing to pay extra for multifunctionality
Feel as tough they are under constant pressure
TOP 5 TR AITS Stressed - out
Longing for more Scat terbrained
Occasionally make unplanned purchases
DEMOGRAPHICS 5 4% F e m a l e Least af fluent segment A v e r a g e a g e: 3 5
23% of Brazilian Consumer
Want others to perceive them as successful Low incomes limit ability to live ideal lifestyle
CONSUMER BEHAVIOR No need to engage
PERSONAL FINANCE Financially conflicted
Express minimal concern for health or diet
S t r u g g l e t o s t a y o n b u d g et despite penchant for shopping
Moderately concerned about environment but unwilling or unable to pay for green goods
Te n d t o s p e n d m o re t h a n save A s p i re t o a c h i e v e f i n a n c i al security without sacrificing enjoyment
Do not spend a lot of time online
Cautious Quality-seeker Profile TOP 5 TR AITS Minimalistic Self-assured Family Focused Careful
SHOPPING L e ss c a n b e m o re
WORK AND SOCIAL LIFE F a m i l y a l w a y s c o m e s f i rst
P re f e r t o h a v e f e w e r b u t n i c e r things and willing to pay extra for high quality
C o n s i d e r t i m e w i t h f a mily a top priority
Deliberate spenders
Av o i d s h o p p i n g w h e n e v e r possible
DEMOGRAPHICS
Stick to their list and never make u n p l a n n e d p u rc h a s e s
5 6% F e m a l e Oldest Segment A v e r a g e a g e: 42
21% o f B r a z i l i a n C o n s u m e r
H a v e n o i n t e re s t i n s t a nd ing out o r b e i n g p e rc e i v e d a s successful E n j o y o p t i m a l w o r k - l i f e bal an c e
CONSUMER BEHAVIOR Stick to their comfort level
PERSONAL FINANCE Financially cautious
Ta k e a b a l a n c e d a p p ro a c h t o health
P l a n a n d s a v e f o r t h e f ut u re
Make eco- friendly choices but unwilling to pay extra for e c o - f r i e n d l y p ro d u c t s I n d i ff e re n t t o n e w t e c h n o l o g y
C o n s i d e r f i n a n c i a l s e c u r i t y i mpo r tant for happiness Av o i d c re d i t c a rd d e b t at al l c o st s
04
TARGE T COS TUMER PROFILE
TITLE | U nd a unte d Striv e r
Co n s c i e n t i o u s O p t i m i s t
N AME | Se b a s tia n
Ga br i e l
AGE | 32
50
OCC U PAT I ON | Fina nce
C EO N e s p re s s o
CAR | Aud i A5
A u di R8
HOBB I E S |
G olfing
Te n n i s
Sa iling
Rea d i n g
B oot Ca m p
Pi l ates
COCKTAIL | Scotch HOUSE HOL D I NCOM E (U S)| $ 1 1 6 , 0 0 0
Gi n $3,000,000
TITLE | Stre s s e d As pira nt
Cauti o us Qual i ty S eeker
NAME | Ca ra
Lui sa
AGE | 29
39
OCC UPAT I ON | Sta y at hom e M om
Part-ti m e j o b i n Fami l y Co m pany
CAR | Toyota Cam ry
To y o t a Pr a d o
HOBBIES | Cook ing Ev e nt P la nning
COC KTAIL | Mim osa HOUS EHOL D I NCOM E | $1 2 4 , 3 2 0
Yo g a + Ca rdi o Rea d i n g M a g a z i n e s
Wine $90,575
Alexandre Herchcovitch Flagship - São Paulo, Brazil
KEY COMPETITORS
KEY COMPETITORS
N AT I O N A L B R A N D S
I N T E R N AT I O N A L B R A N D S
Fasano
Louis Vuitton
Osklen
Calvin Klein
H. Stern
Hermès
Daslu
Giorgio Armani
Alexandre Herchcovitch
Marc Jacobs
Tu f i D u e k
Chanel
Animale
Gucci
Richards
Dior
Le Lis Blanc
Tiffany & Co.
B r a z i l ’s C l o t h i n g B r a n d - R i c h a r d s
SÃO PAULO, BR A ZIL
SÃO PAULO, BR A ZIL
São Paulo is the largest city in South America, with a
12,500 restaurants, including the greatest number of pizze-
population of 11.2 million, making it the 12th largest
rias in a single urban area in the world. São Paulo’s polyglot
city in the world by population. Grande São Paulo,
culture makes it the most ethnically diverse and culinarily
which includes the city and the surrounding suburbs,
advanced in the country. The city is home to one of the
has a population of 32 million, and is the ninth largest
world’s top-rated restaurants, as elected by the coveted
metropolitan area in the world. Residents of the city
World’s 50 Best Restaurants Award, the Michelin-starred
proper are known as Paulistanos, while those of the
D.O.M.
entire state are called Paulistas. The city’s nickname is Terra da Garoa or “City of Drizzle,” in reference the
Cultural attractions include the Museu de Arte São Paulo,
humid, sub-tropical climate.
Museu Ipirangua, Teatro Municipal de São Paulo, Museu do Futebol, Catedral Metropolitana de São Paulo, Pinacoteca -
do Estado de São Paulo, Museu Afro Brasil, Audítorio Ibi-
zil, and is home to over 60% of corporations in Brazil,
rapuera, Museu Arte Moderna, and Centro Cultural Banco
as well as the São Paulo Stock Exchange, the Bolsa de
de Brasil. The famed Brazilian architect, Oscar Niemeyer,
Valores, Mercadorias & Futuros de São Paulo, or the
designed many of Sao Paulo’s museums, monuments, and
BM&F BOVESPA. The exchange is the 13th largest in
buildings, such as the Edifício Copan, the Memorial da
the world with a market capitalization of $1.2 trillion
América Latina, and Parque Ibirapuera, as well as many
USD. The city is the eponymous capital of Brazil’s
other cultural and government buildings across Brazil. His
largest and wealthiest state, with a GDP of $220 billion
distinctive style is a prominent cultural feature of the city
USD, accounting for 12.6% of Brazil’s overall GDP. The
and of the country.
city also concentrates over 70% of Brazil’s luxury market, with an annual disposable income of $239 billion
São Paulo also hosts major events like the São Paulo Gay
USD. A 2011 Goldman Sachs report forecasts that São
Pride Parade, which is the world’s largest and attracted over
Paulo will enjoy the third highest rate of economic
3.5 million attendees in 2015, and São Paulo Fashion Week,
growth among cities worldwide by 2025, behind only
a biannual ten-day celebration of Brazilian fashion.
London and Mexico City. São Paulo is also the cultural capital of Brazil, and largest population of people of Italian and Japanese descent outside of those countries, and the largest urban Jewish population in the world. Its Italian heritage has engendered strong espresso-drinking culture, with
The city is home to 77 shopping malls, 410 hotels, 152 theaters, 55 cinemas, 90 museums, 54 parks, and
AT TR AC TIONS
01
Areas + Neighborhoods
02
Eat + Drink
03
See
AT TR AC TIONS
São Paulo is a major retail center
São Paulo also has the largest
and shopping destination for vis-
hotel offerings in South America,
itors from all across Brazil. The
w i t h 42, 0 0 0 h o t e l r o o m s i n 410
cit y’s shopping center s and malls
hotels.
attract about 90 million shoppers every month.
S ã o P a u l o h a s o v e r 1,1 0 0 s q u a r e miles of parks and green space. O n e o f t h e m o s t p o p u l a r, P a r q u e Ibirapuera,
welcomes more than
9 0 0, 0 0 0 v i si to r s m o nt hl y.
Catedral da Sé - Praça da Sé
01
AREAS + NEIGHBORHOODS
P I N H E I R O S , S A O PA U L O
BOM RETIRO
Cozy restaurants and cafes with a youthful
World-class Sala Sao Paulo concert hall
e n e r g y. R e s i d e n t s g a t h e r a t B e n e d i t o C a l i x -
Jardim da Luz historical Park; high crime
to Square, a loud and crowded area where people enjoy live music drinks alongside
rate, so best to go during the day; full of cheap fashion from Korean owned shops
t h e a n t i q u i t i e s f a i r. B E L A V I S TA , S A O PA U L O Known for its Italian cantinas - place to go
I TA I M B I B I / V I L A O L I M P I A Upscale residential area with fine dining nightclubs and art galleries; swanky shop-
for great pasta.
ping centers such as Cidade Jardim and Vila
E x p e r i e n c e t h e l i v e l i n e s s o f t h e n e i g h b o r-
Olimpia.
hood walking through the antiquities fair at Dom Orione Square or visiting the “Brazilian Caminito.” J A R D I N S , S A O PA U L O Jardins is the junction of four smaller
VILA MADALENA Bohemian, eclectic artis hub; art galleries and independent boutiques; hip eateries and vibrant nightlife.
neighborhoods, Paulista, América, Europa,
CENTRO
and Paulistano
Breathtaking architecture, tradition-
U p p e r- c l a s s a re a , o ff e r i n g a v a r i e t y o f
al shops, contemporary art concepts and
things to do, including shopping, museums
cutting-edge dining; a study in contrasts
and parks.
at the intersection of old and new Brazilian culture; young Brazilian artists and creatives from all fields are adopting this n e i g h b o u r h o o d a n d i t s h i s t o r y.
02
E AT + D R I N K
SĂŁo Paulo is a city that prides itself on its gastronomic excellence, offering not only the best of Brazilian cuisine, especially the barbecue houses, but also a truly eclectic mix of restaurants serving dishes from the four corners of the globe. For many food critics, SĂŁo Paulo now boasts the best selection of top restaurants in the world.
R E S TAU R A N T S D.O.M Mani Fasano Mocoto A Figueria Rubaiyat Bagatelle Paris 6
03
Centro Cultura l B a n c o d o B r a z i l
SEE
P a rq u e Ib i r a p u e r a
PA R K S + M E M O R I A L S
C U LT U R A L S I T E S
Parque Estadial Cândida Portinari
Beco de Batman
Parque Villa Lobos
Edifício Copan
Memorial da América Latina Parque da Alimação Parque do Ibirapuera
B o l s a d e Va l o re s , M e rc a d o r i a s + F u t u ro s (Stock Exchange) Te a t r o M u n i c i p a l d e S ã o P a u l o Catedral Metropolitana de São Paulo
MUSEUMS Pinacoteca do Estado de São Paulo Centro Cultural Banco do Brasil Museo do Futebal Museu de Ipirangua Fundação Biennal de São Paulo Museu de Arte Moderna Museu Afro Brasil
Auditório Ibirapuera Pavilhão Oca
POP-UP SHOP
01
Location
02
Time
01
To
L O C AT I O N
maximize the impact of the Vince
Avenue Paulista, a major São Paulo
pop-up store, our location must be in
thoroughfare, borders Jardim to the
an area with plenty of foot traffic driv-
eas t, where architec t Lina Bo Bardi’s
en by cultural attractions and other
196 8 c la s s ic , t h e M u s e u d e A r te d e
desirable shopping destinations. Be-
São Paulo, is located. The MASP is
cause São Paulo has such bad vehicular
widely regarded as having the most
traffic, (traffic snarls on Friday eve-
prominent collection of European
n i n g s a v e r a g e 112 m i l e s ) i t i s i m p o r t -
ar t in the Southern Hemisphere, as
ant that the pop-up be within walking
well as a veritable timeline of in-
dis tance of major residential and tour-
digenous to modern Brazilian art.
ist areas.
A weekend bazaar is hosted on the terrace below the museum, which
The Jardim area fits that description,
serves as a gathering place for Pau-
situated in the relatively well-to-do
listas.
western sec tion of São Paulo, sandwiched bet ween the hips ter- and s tu-
Jardim is also home to Rua Oscar
dent-filled Pinheiros distric t to the
Freire, a world-renowned shopping
n o r t h, a n d t h e s w a n k y, u p s c a l e I t a i m
street known as the “Rodeo Drive
Bibi and Vila Olímpia, as well as the
o f L a t i n A m e r i c a .” F r e i r e a n d t h e
cultural hub of Parque Ibirapuera to
streets surrounding it house flag-
the south. The Centro area to the west
ship s tores for some of Brazil’s
is São Paulo’s financial hub, home of
major fashion brands, like Havianas
the stock exchange and the headquar-
and Alexandre Herchcovitch, as well
ter s for mos t of Brazil’s major cor po -
as international imports like Calvin
rations, as well as architectural land-
Klein. Jardim has plenty of stylish
mark s like Osc ar Niemeyer ’s Copan
hotels and bars, as well as sidewalk
B u i l d i n g a n d t h e b a r o q u e Te a t r o M u -
cafes and people watching.
nicipal de São Paulo.
Across Paulista Avenue from the MASP
P a r q u e Te n e n t e S i q u e r i a C a m p o s i s
i s t h e P a r q u e Te n e n t e S i q u e r i a C a m -
zoned as Zona E s pecial d e Preser-
pos, a two block square park that
vação Ambientae, or special envi-
serves as the entrance to the Jardim
ronmental preser vation zone, which
neighborhood. The western side of the
according to São Paulo’s recently
park is densely planted with native
re-evaluated zoning codes, forbids
tropical plants, but the eastern side is
permanent structures, but does al-
more open, with room for street ven-
low for temporary construction. The
dors.
new Gestão Urbana (Urban Planning) São Paulo master plan, enacted July
This would be the ideal location for
31 by Mayor Fernando Haddad, was
the pop-up, as it would be direc tly
designed to tackle growing income
across from the MASP and in view of
inequality and urban congestion,
Avenue Paulista, allowing for maximum
and new construction projects de-
exposure, while still drawing shopping
v i s e d to f a c i l i t a te w a l k i n g a n d /o r
foot traffic from the MASP weekend
commerce are encouraged.
markets and the Oscar Freire area.
Street Style Sao Paulo Fashion Week
02
TIME
To r a i s e a w a r e n e s s o f t h e V i n c e b r a n d ,
October falls in the spring in the South-
the São Paulo pop-up location will
ern Hemisphere, which is typically warm
be open for four weeks in October of
and sunny in São Paulo, with frequent
2 016 . S ã o Pa ul o Fa s hio n We e k i s a ma -
s h o w e r s b e f i t t i n g t h e “ C i t y o f D r i z z l e .”
jor event that brings several hundred
S ã o Pa u l o s e e s a n ave r ag e of 15 d ay s of
t h o u s a n d v i s i to r s to t h e c i t y, i n c l u d i n g
r a i n i n t h e m o n t h o f O c t o b e r. Te m p e r a -
fashion industry insiders from all over
tures range from daytime highs of 77º F
the continent. SPFW will held at Parque
t o e v e n i n g l o w s o f 5 4 º F.
C ândida Por tinari, f rom Oc tober 18
th
to
O c to b e r 26 , 2 016 .
Our pop-up shop will be open Monday
th
t h ro u g h S a t u rd ay, f ro m te n o’c l o c k a m While this is fairly far from our chosen
to s i x o’c l o c k p m. We w i ll b e c l o s e d o n
location, this area of the city does not
Sundays, as is common in Brazil. For
g et nearly as muc h foot tr af fic as Jar-
our in-store events, store hours will be
dim, and is not a well-known shopping
e x te n d e d u n t il te n o’c l o c k p m, to c o i n -
area. We anticipate that at tendees of
cide with the typically later dinner hour
SPFW will come to the Jardim area, as it
customary in Brazil.
is an established tourist area known for shopping and culture. The Vince pop-
We w i l l a l s o b e c l o s e d We d n e s d ay,
u p s h o p w i ll o p e n S a t u rd ay, O c to b e r 1 ,
O c t o b e r 12 th, f o r t h e n a t i o n a l r e l i g i o u s
and last through fashion week to close
holiday of the Feast Day of Our Lady
Fr i d ay, O c to b e r 2 8 .
Aparecida, the Patroness of Brazil.
st
th
COMPAN Y FORMATION
01
Integration to New Market
02
Construction + Legal Compliance
03
Hiring
04
Salaries + Benefits
05
Employee Cost Breakdown
I N T E G R AT I O N T O N E W MARKET
Bec ause of Brazil’s complex bureaucrac y, V i n c e’s b e s t m o d e o f e n t r y i n to t h e Brazilian market would be through the formation of a limited liability company for the Brazilian branch, and then an entrance into a joint venture with a lo c al re t ail c o m pa ny. T hi s m e t h o d i s common among foreign retailers expanding to Brazil. The Brazilian version of an LLC is called a Sociedade Limitada, abbreviated Ltda. It is relatively simple to form and operate, and does not involve a minimum capital requirement or capital reserves. Ltda. structure is conducive to joint ventures between foreign-based and Brazilian companies. It requires the involvement of at least two parties, whether an individual or a l e g a l e n t i t y, n e i t h e r o f w h o m n e e d t o b e B r a z i l i a n c i t i z e n s . H o w e v e r, t h e Ltda. must be managed by a Brazilian resident; either a Brazilian citizen or a foreigner with a Brazilian work permit, obtained through the Minis tr y of Fore i g n L a b o r. T h e L t d a . m u s t b e f o r m e d with Articles of Association, and regis-
tered through the local Junta Commercial do Estado, or Depar tment o f Tr a d e . T h e L t d a . c a n b e e a s i l y converted to a corporation, or Sociedade Anônima, abbreviated S. A ., in the future. Before operating, the Ltda. must apply for an alvará de funcionamento, or business license through the Secretaria Municipal da Receita e do Patrimônio Público Imobiliário, or National Registry of Legal Entities, in order to pay federal taxes. This requires a real estate certificate; statement of responsibilit y; the Ar ticles of A ssociation; confirmation of Junta Commercial registration; an identification document for the company administrator; and f i n a l l y, a re c e i p t f o r t h e p ay m e n t o f the registration fee, called a Documento de Arrecadação Avulso.
The next step is to register with the
The final step in business formation
Inscrição Estadual, the state regu-
is regis tration with Brazil’s Social
latory body that collects state-level
Security Institution, or Instituto
taxes. The process is similar to the
Nacional do Seguro Social within
application for a business license, and
30 days of commencing operations.
requires two registration applications,
Registration is obtained through the
the Documento Único de Cadastro and
Social Security Agency and requires
the Documento Complementar de Ca-
cer tificates of the registrations list-
das tro; confirmation of Junta Commer-
ed above.
cial registration; the business license attained through the National Registry
All of these processes typically
of Legal Entities; and identification
take between three to six weeks to
documents for all of the partners.
complete, and usually require legal assistance from a Brazilian firm
In order to begin business operations
familiar with the necessary actions
and issuing any fiscal invoices, the
and able to translate the relevant
company must receive the authoriza-
documents. This can cost $5,000 to
tion to issue Notas Fiscais, called Au-
$ 6,0 0 0 USD, depending on the area.
torização de Impressão de Documentos Fiscais. The AIDF system controls the authorization for printing and sealing tax and fiscal documents. Authorization can be obtained online through the Secretaria da Fazenda, and requires certificates of the registrations listed above.
CONSTRUCTION
+
LEGAL
COMPLIANCE
Construc tion compliance in Saõ Pau-
Because it is a temporary struc-
lo t ypically takes about 75 days, and
ture in a public space, elec tricity
requires the filing of at least seven
will be provided through a porta-
separate documents with various agen-
b l e g e n e r a t o r, t o b e i n s t a l l e d b y a
cies. The process costs an average of
p r o f e s s i o n a l e l e c t r i c i a n . A 12- k i l o -
$70 0 USD.
watt portable generator capable of powering 540 square feet and nec-
The first step is to apply for an alvará
essar y appliances will cost $3,059
de construção, or construc tion permit
USD. Free wireles s Internet ser vice
through the Secretaria Municipal da
is provided by the city in downtown
Receita e do Patrimônio Público Imo-
areas through a government pro-
biliário, the local depar tment that reg-
gram called Acessa São Paulo.
ulates public real estate. The required documents are a cer tification of usage, a real estate clearance cer tificate, a summary of the architectural project, a n o te o f te c h n i c a l re s p o n s i b i l i t y, a n d business license certification. Once the alvará de construção is received, it must be submitted back to the Secretaria Municipal da Receita e do Patrimônio Público Imobiliário along with a detailed floor plan and the summary of the architectural project with any revisions made during the permit-issuance process.
HIRING
We will hire six retail associates, four
managers and outside companies
managers, and one Brazil director to
that will best work with the Vince
run our S達o Paulo pop-up. The direc-
brand and company struc ture. The
tor will serve as the local partner for
director must speak fluent English,
Vince as the company expands into
have retail management and busi-
Brazil. The director will work close-
ness experience, and mesh well with
ly with two Vince employees from the
the corporate representatives.
N e w Yo r k c o r p o r a t e o f f i c e , w h o w i l l b e dispatched to S達o Paulo for ten weeks
To h i r e o u r s a l e s a s s o c i a t e s , w e w i l l
to manage the expansion and set store
post advertisements at some of the
goals and policies. Janitorial, legal,
many local colleges that offer fash-
marketing and PR, and logistics and
ion and design programs. This will
warehousing will be outsourced to lo-
ensure that our associates will be
cal Brazilian firms.
well educated and have a sense of the aesthetics that are integral to
The four retail managers will include
our pop-up.
two keyholders, one human resources m a n a g e r, a n d o n e o p e r a t i o n s m a n a g e r.
Because S達o Paulo is a cosmopoli-
The managers will be responsible for
tan city with a rich design history
day-to - day operations, regis ter over-
and a large and diverse population
sight, coordinating orders and receiv-
of students and executives, the city
ing shipment, hiring associates, and
provides an ideal hiring pool.
tracking key performance indicators. To f i n d q u a l i f i e d e m p l o y e e s , w e w i l l start with hiring our country director through a S達o Paulo headhunting firm, and then using him or her to find
SAL ARIES + BENEFITS
Tr a i n i n g w i l l b e c o n d u c t e d b y t h e
Employee salaries will be determined
director and corporate representatives
by Brazilian standards, with sales
to ensure that employees are well-
associates receiving a salary of BRL
versed in sales, register procedures,
7, 0 0 0 o r U S D 1 , 9 3 6 . 9 9 p e r m o n t h ,
te c h n o l o g y, a n d f l u e n t i n t h e a e s t h e t-
managers receiving a salary of BRL
i c s , h i s to r y, a n d d i f f e re n t ia l a d v a n t a g -
12 , 0 0 0 o r U S D 3 , 3 2 0 . 5 6 p e r m o n t h , a n d
es of the Vince brand.
our director receiving a salary of BRL 20,000 or USD 5, 534.27 per month.
Employees will be expected to follow
These figures do not include bene-
a code of conduc t in line with Vince’s
fits mandated by Brazilian labor laws,
values and beliefs, as well as local
including transportation and meal
labor laws, and dress in accordance
vouchers, and paid parental leave, or
with Vince’s aes thetic. This includes
customary benefits such as health in-
neutral colors; simple, modern shapes;
surance, which we will provide in addi-
a n d c l e a n m a k e u p a n d h a i r.
t io n to s ala r y.
Employees may mix items from their personal wardrobes in with Vince pieces. Store employees will receive a discount of 20% on merchandise, with graded allotment of free items. Sales associates will receive two pieces and managers will receive three pieces for their period of employment in the pop-up shop.
To f i t t h e d u r a t i o n o f o u r p o p - u p s h o p
We will contrac t legal ser vices
opening, we will hire our sales asso-
through a SĂŁo Paulo-based firm
ciates and managers for a period of
to assist with the Ltda. formation
five weeks, to cover the opening peri-
process and navigate the filing of
od and extensive training beforehand.
relevant documents. A marketing
Should the pop-up be successful and
specialist will be contracted for
the decision made to continue and
the same period, to help establish
expand operations in South America,
the Vince brand and drive traffic in
these employees may be of fered per-
anticipation of the store opening
manent positions at the discretion of
by performing the tasks listed in
t h e d i r e c t o r.
our promotional plan. We will also contract janitorial services for the
To c o v e r t h e f o r m a t i o n o f t h e V i n c e
duration of the store opening for
business in Brazil and supervise the
o n e h o u r b e f o re o p e n i n g e ve r y d ay,
legal, bureaucratic, and construc tion
M o n d ay t h ro ug h Fr id ay.
progress, our director will be hired f o r a p e r i o d o f 12 w e e k s , w i t h t h e o p portunity for extended employment. The two corporate representatives w i l l r e l o c a t e t o B r a z i l f o r t h e s a m e 12 week period to facilitate the setup and familiarize themselves with the retail landscape and culture.
R E TA I L S A L E S A S S O C I AT E S
R E TA I L MANAGERS
BRAZIL DIREC TOR
IMPORTING, LOGISTICS + INFRASTRUCTURE
To i m p o r t p r o d u c t s i n t o B r a z i l , o u r
The closes t por t to São Paulo is Por-
Ltda must be registered as a first-time
to de Santos, 49 miles from down-
i m p o r t e r w i t h t h e F o r e i g n Tr a d e S e c -
town. The most expedient mode
retariat, or SECEX, through the Siste-
of transport from Santos to São
m a I n t e g r a d o d e C o m é r c i o E x t e r i o r,
Paulo is by truck, which can take
o r S I S C O M E X . T h e s e s y s t e m s r e g i s t e r,
up to four hours with traffic. Our
monitor and control all internation-
merchandise will be sent from the
al trade to and from Brazil. Then, the
Vince distribution center located on
Ltda. must obtain an import license
Wilshire Boulevard in Los Angeles.
from the Registro de Exportadores e
It takes 28 days and costs $3,487
Importadores.
USD to transport a 20 foot shipping container from the Por t of Long
Import shipments must include a bank
Beach to Por to de Santos.
document, bill of lading, cargo rel e a s e o r d e r, c o m m e r c i a l i n v o i c e , c e r-
We will outsource our logistic s and
tificate of origin, import declaration,
warehousing to DHL, which offers
impor t invoice, detailed packing list,
bonded warehouses and trucks for
and technical standard cer tificate.
ground transportation in Brazil.
Upon arrival in Brazil, we must pro-
DHL has been conducting business
vide a customs import declaration and
in Brazil for over 20 years, so they
pay the required import duties to the
have experience in this area.
Secretariat of Federal Revenue. Import duties are established through the common tariff system of the MERCOSULtrade bloc, of which Brazil is a m e m b e r. O u r m e r c h a n d i s e f a l l s u n d e r six different duty classifications. The rates vary by item and fabrication, but the average rate on our product assor tment is about 34% of the total produc t value.
PROMOTIONAL PLAN
PROMOTIONAL PL AN
In
order to maximize the impact of
our pop-up venture, we will work in tandem with an outside marketing consultant based in São Paulo to establish the Vince brand in advance of t h e s t o r e o p e n i n g . To b e g i n , w e w i l l place Por tuguese adver tisement s in the July and Augus t is sues of Vogue Brazil, as well online ads on vogue. c o m . b r, t o p i q u e t h e i n t e r e s t o f t h e B r a z i l i a n f a s h i o n c o n s u m e r. We w i l l also arrange for a profile and event announcement in the September issue of Vogue Br azil. To r a i s e t h e V i n c e p r o f i l e o n s o c i a l media, we will set up a Facebook page for Vince Brazil, as well as a profile on Orkut, a Brazilian social media site similar to Facebook with a higher penetration in Brazil. We will also reach out to influential Brazilian fashion bloggers, such as Thássia Naves, Lalá Noleto, Camila Coelho, Helena Bordon, and Lala Rudge to gain traction with a wider audience and secure strategic product placement on social media.
This will be followed by in-store events, attended by our social media promoters and fans, to mark the grand opening of the pop-up shop o n S a t u r d a y, O c t o b e r 1, a s w e l l a s another event to mark the start of S ã o P a u l o F a s h i o n W e e k o n Tu e s d ay, O c t o b e r 18 . We also plan to integrate media into our store with a video campaign to show on our social media platforms as well as playing in the store during events.
GANNT CHART
STORE DESIGN
DESIGN CONCEPT
The purpose of our Vince pop-up is to increase the visibility of the brand in Brazil and South America in order to ex pa n d o u r ma r ke t inte r na t io nall y. Therefore, the store design must ser ve as a showc ase for the brand ’s unique aesthetic; an instantly recognizable symbol of the laid-back luxury Vince embodies. In order to stand out in such a city as architec tural as São Paulo, our store design must be innovative and eye-catching, while also communicating the Vince aesthetic. Our location in an open green space in a high-traffic area is the ideal place for making such a statement. The inspiration for the design initiated with the architecture o f O s c a r N i e m e y e r, w h o s e i n n o v a t i v e , monochromatic, curvilinear designs ser ve as a template for Brazil’s nation al style. Because Vince is also ver y architectural in its design, although in a d i f f e re n t w ay, w e f o u n d t h i s to b e a perfect segue into a localized design.
Our store was designed in collaboration with SCAD Interior Design s tud ent Veronic a Lloveras, and seeks to combine the curvature of Niemeyer ’s forms with Vince’s linea r sim plic i t y. T h e ex te r io r i s a clean-edged rectangle in glass and concrete, with stairs leading to a rooftop deck, the space to be used for our planned in-store events. The interior is defined by sinuous ceiling hangings in natural-colored cashmere, which incorporate the more natural feel of Niemeyer ’s work. The interior fixtures are also uphols tered in c ashmere, Vince’s signature fabric, to create a thoroughly tac tile customer experience. The f loor-to - ceiling glas s provides passers-by a full view of the interio r, s e r v i n g a s a j e w e l b o x - l i k e a d vertisement for the Vince brand.
FLOOR PL AN
ROOF TOP BIRDS EYE VIEW
INTERIOR BIRDS EYE VIEW
EXTERIOR DESIGN
INTERIOR DESIGN
POP - UP COST
ITEM
UNIT COST
NUMBER OF UNITS
COST
CLOTHING RACK
$98
8
$784
TRASH CANS
$40
3
$120
POS SYSTEM
$1,799
2
$3,598
100 FLAT HANGERS
$75
4
$300
1 0 0 PA N T H A N G E R S
$99
4
$396
FLOOR MIRROR
$250
2
$500
COUNTER MIRROR
$30
4
$120
5 4 6 YA R D S C A S H M E R E
$4,000
1
$4,000
PROJECTOR
$500
1
$400
I PA D
$298
2
$596
F L O AT I N G S H E LV E S
$13
10
$260
B U I LT I N S H E LV E S
$300
2
$600
D I S P L AY TA B L E S
$250
2
$500
5” RECESSED LIGHTING
$20
15
$300
TRACK LIGHTING
$38
4
$152
ITEM
UNIT COST
NUMBER OF UNITS
COST
D I S P L AY C A S E L I G H T I N G
$28
10
$280
REGISTER DESK
$600
1
$600
STOOL
$100
4
$400
FEMALE MANNEQUIN
$139
5
$695
MALE MANNEQUINS
$149
5
$745
ACCENT CHAIRS
$234
2
$468
SHOE STANDS
$13
6
$7
WA L L D I S P L AY B A R
$20
8
$160
B U I LT I N D I S P L AY S
$1,000
2
$2,000
CONSTRUCTION OF BUILDING
$67,500
T O TA L
$85,552
WOMEN
DRESSES
01 Long Sleeve Linen Blend Dress A collarless split neckline and half placket top An elegant kaftan crafted from a breezy stretch-linen blend.
Color Size
00
0
8
10 12 14
2
6
57 1/2� lengt h (size 8).
68% l ine n 29% viscose 3% elasta n e
$395
02 Cotton Poplin Shift Dress Thin stripes in a mix of widths play tricks on the eye, on this crisp cotton-poplin shift with a banded contrast collar
Color Size
00 8
0
2
38� length (size 8)
100% cotton
$285
6
10 12 14
03 Cap Sleeve Pop Over Dress Dress offers elevated, everyday ease. Blocked seam details give a rolled-sleeve effect for a casual edge.
Color Size
XXS XS
S
M
L
XL
68% l inen 29% viscose 3% elasta n e
$375
04 Lace Inset Pullover Dress Effortless popover dress is airy, and elevated by feminine lace insets. It’s super light and gauzy fabrication hangs well.
Color Size
00 8
0
2
6
10 12 14
36 1/ 2� l e n g t h (si ze 8 ). S l i p s o n o v e r h e ad. Split neck.
100% r a m i e .
$365
BUTTOMS
05 Roll Cuff Linen Shorts Smooth woven linen makes for a perfectly polished pair of
Color Size
2
6
00
0
8
10 12 14
4 1/2” inseam 11” front rise 15” back rise (size 8) Zip front with hookand-bar closure. 6 8% l inen 2 9% vis co se 3 % elastan e.
$175
06 Linen Blend Shorts Stitched creases and crisp pleats structure the legs of comfy linen-blend shorts eased on with a partial elastic waist.
Color Size
00 8
0
2
4” inseam 12” front rise 15” back rise (size 8) Partial elastic waist Front slant pocketsBack welt pockets 68% linen 29% viscose 3% elastane.
$175
6
10 12 14
07 Boyfriend Trousers Blanched trousers make essential weekend wear with their
Color Size
00
0
8
10 12 14
2
6
30” inseam 9 1/2” front rise; 14” back rise (size 8).
98% cotton 2% spandex.
$195
08 Wide Leg Trousers Crisp pleats and sharp creases structure dramatically full
Color Size 34” 30” 11” 15”
00
0
8
10 12 14
2
6
inseam leg opening; front rise back rise (size 8)
100% polyester.
$295
09 ‘Riley’ Skinny Jeans (Rexford) Subtle tonal stripes visually elongate the silhouette of versatile skinny jeans cut from soft stretch denim. Color Size
24 25 26 27 28 29 30 31 32
30” inseam 9” front rise 13 1/2” back rise Made in USA imported Fabric
99% cotton 1% elastane
$225
10 Linen Blend Cargo Pants With a touch of urbane polish linen-blend cargo pants detailed with zip pockets and elasticized hems.
Color Size
00
0
8
10 12 14
2
6
10” front rise 15” back rise (size 8).
68% l in e n 29% viscose 3% e la st a n e
$395
TOPS
11 Stripe Linen Tee Trapped bar stripes and effortlessly cool rolled cuffs Semi-sheer tee made from a lightweight linen jersey knit.
Color Size
XXS XS
S
M
L
XL
27� length (size Medium). Crewneck. 100% linen.
$125
12 Short Sleeve Layer Tee A luxe short-sleeve tee made from an ultrasoft blend of cotton and drapey modal features an effortless faux-layered look.
Color Size
XXS XS
S
M
L
XL
2 7 1/2� lengt h ( s ize Med ium) Sp l it H em 5 0 % p ima co t to n 5 0 % modal.
$95
13 Cotton Poplin Off-The-Shoulder A collarless split neckline and half placket top An elegant kaftan crafted from a breezy stretch-linen blend.
Color Size
XXS XS
S
M
L
XL
68% l ine n 29% viscose 3% ela sta n e
$255
14 Sl eeveless Hooded Linen Tee A boxy sleeveless hoodie cut from airy, lightweight linen makes a sporty layering piece perfect for milder weather
Color Size
XXS XS
S
M
L
XL
26� length (size Medium). Slips on over head.
100% linen.
$125.00
15 Cap Slee Layer Look Tee Striped micro-ribbing peeks out of this tipped silk top, adding sporty edge to the chic layered look. .
Color Size
XXS XS
S
M
L
XL
27� length (size M).
100% silk with 100% rayon contrast.
$265
16 Wo v en St ripe C ot ton Shir t Woven cotton shirt, features classic ticking stripes lightened with subtle openwork that lends a breezy feel to a warm-weather staple.
Color Size
XXS XS
S
M
L
XL
30� length (size 8). Split round neck.
100% cotton
$245
17 Short Sleeve Square Tee Woven construction and a vented shark-bite hem put a mod.
Color Size
XXS XS
S
M
L
XL
24 1/2� length. Crewneck. Elbow sleeves. 1 00 % Polye ster
$195
18 Dolman Sleeve Knit Tee A wide neckline and abbreviated dolman sleeves add to the relaxed feel, made from ultrasoft modal with a dose of stretch.
Color Size
XXS XS
S
M
L
XL
25 1/2� length (size M). Ballet neck.. 96% modal 4% spandex.
$125
SHOES
Faye Peep-Toe Bootie A m o d e r n p e e p - to e w i t h a d o w n t o w n e d g e , t his c u t - o u t b o o t i e i s s t re a m l i n e d i n s o f t l eat h er w i t h a b l o ck h e e l . Color Size
5.5 6 6.5 7 7.5 8 8.5 9 9.5 10
1 0 0 % It a l i a n l ea t her. Heel hei ght : 8 5 mm. M a de i n It a l y.
$325
‘Noella’ Lace-Up d’Orsay Flat A pointy toe and leg-flat tering lace-up styl ing enhance t he contemporary look of a sleek d ’Orsay f la t sa nda l ma de f rom supple lea t her. Color Size
5.5 6 6.5 7 7.5 8 8.5 9 9.5 10
$325
Edina Pyramid-Embossed Espadrille V inc e p y r a m i d - e m b o s s e d l e a t h e r e s p a d r i l l e san d al . Ad j ust a b l e s u e d e a n kl e s tra p .
Color Size
5.5 6 6.5 7 7.5 8 8.5 9 9.5 10
100% Ital i a n l ea t her. He el h eig ht : 1 .3 ” f l a t heel . M ade in It a l y.
$275
‘Noella’ Lace-Up d’Orsay Flat
Color Size
5.5 6 6.5 7 7.5 8 8.5 9 9.5 10
$325
‘Noella’ Lace-Up d’Orsay Flat m a d e f ro m s u p p l e l e a t h e r.
Color Size
5.5 6 6.5 7 7.5 8 8.5 9 9.5 10
$325
MEN
TOPS
01 Jersey Henley T-Shirt An airy short-sleeve henley is made from soft and light-wearing linen jersey for cool comfort in warm temps.
Color Size
S
M
L
XL XXL
29” length (size M). Three-button placket
100% linen.
$145
02 ‘Melrose’ Trim Fit Band Collar woven in soft and lightweight cotton with sleek silver buttons.
Color Size
S
M
L
XL XXL
B a n d c ol lar.
1 0 0 % C ot ton
$175
03 Stripe Linen Stripe Linen A soft and lightweight casual V-neck T-shirt is made from breathable linen that’s just-right for warm-weather climates.
Color Size
S
M
L
XL XXL
2 7 � leng t h (size M ). V- neck. S h ort sleeve s.
1 0 0 % l inen .
$125
04 Mixed Stitch Long Sleeve Mixed knit panels offer cool textural contrast on an easygoing long-sleeve T-shirt cut from a supersoft cotton blend.
Color Size
S
M
L
XL XXL
Crewneck. Long sleeves
60% cotton 40% modal.
$145.00
05 ‘Melrose’Trim Fit Sport Shirt
Color Size
S
M
L
XL XXL
Raised Placket Chest Pocket
1 00 % Cot to n
$195
06 Tr i m Fit Dark Chambray Sport Shirt A sharp collar and French placket epitomize the clean, modern aesthetic of a workwear-inspired chambray sport shirt.
Color Size
S
M
L
XL XXL
French Placket
55% cotton 45% linen
$195
JACKETS
07 Full Zip Rib Knit Cardigan An exaggerated rib knit adds ample modern appeal to a lightweight cotton sweater that’s both handsome and versatile.
Color Size
S
M
L
XL XXL
Front Pocket Mock neck Men’s Sportswe ar
1 00 % Cot to n
$345
08 Hooded Snap Jacket Magnetic snaps fasten a street-smart tightly woven hooded jacket cleanly styled with concealed zip pockets at the chest.
Color Size
S
M
L
XL XXL
Adjustable drawstring hood Zip chest pockets 63% polyester 32% rayon 5% spandex.
$445
09 Suede Jacket Polished heather-grey ribbed trim accent the stony light colorway on a jacket fashioned from smooth goatskin suede.
Color Size
S
M
L
XL XXL
29 1/2� length (size M) Front snap-button closure.
S u ed e
$895
10 Double Layer Pima Cotton Reversible Two casual looks in one, this reversible full-zip hoodie is made from Peruvian pima cotton, it will be a go-to favorite.
Color Size
S
M
L
XL XXL
Adjustable drawstring hood Split kangaroo pocket.
$165
TROUSERS
11 Slim Fit Jogger Pants Built for maximum comfort with an elastic drawstring waistband, cool cotton-jersey lining and snug ribbed cuffs.
Color Size
S
M
L
XL XXL
Elastic/drawstring waist Front slant pockets; ba c k w el t p ockets. 77% polyester 11% rayon 7% cotton 5% spandex.
$195
12 ‘Flight’ Linen Blend Elastic Waist Short Three-pocket shorts woven in a soft, lightweight and breezy linen.
Color Size
28 29 30 31 32 33 34 36 38
Elastic - drawstring waist Side zip pockets Back patch pocket.
52% linen 47% viscose 1% elastane
$175
13 ‘Soho’ Slim Fit Linen Pants Perfect for cool nights and casual strolls along the beach, soft, summery linen forms lightweight and breathable pants Color Size
28 29 30 31 32 33 34 36 38
Zip fly with button closure. Five-pocket style.
52% linen 47% viscose 1% elastane.
$195
14 Sateen Tapered Fit Pants A satin-trimmed waistband Stretch-cotton pants designed with a sleek, modern taper.
Color Size
28 29 30 31 32 33 34 36 38
10” front rise 15” back rise (size 8).
68% l in e n 29% viscose 3% e la st a n e
$245
CONCLUSION + LONG -TERM PL AN
If the pop-up is successful, and Vince makes an impression in the Brazilian/South American marketplace, the next step would be to create a permanent struc ture in São Paulo. Because Brazil lacks the well-developed wholesale infrastructure of the US, our mode of expansion would instead utilize the network of luxury malls that are so prevalent, not only in São Paulo, but across Brazil. Leasing a mall space in JK Iguatemi or Cidade Jardim would p rov id e inf r a s t r u c t u re fo r d evelo p m e nt a c ro s s t h e c o u nt r y. Another possible route for expansion would be to “tour” the pop-up to other major cities, such as Rio de Janeiro or Brasilia, and eventually to other cities in South and Central America. C o n c u r re n t l y, w e w o u l d a i m to f u l l y d e ve l o p a B r a z i l - f a c i n g e - c o m m e r c e s i t e , w i t h t h e a d d r e s s v i n c e . b r, a n d corresponding warehouse and shipping capability to handle online orders.
THANK YOU
Lilly Brasili Caroline Lowe Ta t i a n a R a p p a c c i o l i