Illustrated report 2 by ucashow

You&ME

Illustrated Report

Contents

Executive Summary Introduction 1. The Proposal 1.1 Company Overview 1.2 The New Brand 1.3 USP 1.4 Ansoff Matrix 2. The Marketing Mix 2.1 The People 2.1.1 Demographics 2.1.2 Spending Power 2.1.3 Psychographic Profile 2.1.4 Buying Attitudes 2.2 The Product 2.2.1 Product Overview 2.2.2 CAD Range Plan 2.2.3 Sourcing Strategy 2.2.4 Sustainability and Ethics 2.3 The Price 2.3.1 Pricing Policy 2.3.2 Price Band Matrix 2.4 The Place 2.4.1 Distribution Strategy 2.4.2 Omni-channel Retailing 2.5 The Position 2.5.1 Price/Style Matrix 2.5.2 Competitor Evaluation 2.6 The Promotion 2.6.1 Branding 2.6.2 Experiential Retailing 2.6.3 Intergrated Marketing Strategy 2.7 Persuasion

3. Business Planning 3.1 Sales Revenue 3.2 Expenditure 3.3 Capital Funding 4. SWOT Analysis 4.1 Strengths 4.2 Weaknesses 4.3 Opportunities 4.4 Threats 5. Conclusions Image References Bibliography Appendices

Page 4-5 Page 6-7 Page 8-23 Page 10-15 Page 16-19 Page 20-21 Page 22-23 Page 24-103 Page 26-31 Page 32-33 Page 34-35 Page 36-37 Page 38-39 Page 40-41 Page 42-43 Page 44-61 Page 62-63 Page 64-65 Page 66-67 Page 68-69 Page 70-71 Page 72-73 Page 74-75 Page 76-77 Page 78-79 Page 80-81 Page 82-85 Page 86-87 Page 88-91 Page 92-93 Page 94-101 Page102-105 3

Page 106-107 Page 108 Page 109 Page 110-111 Page 112-113 Page 114 Page 115 Page 116 Page 117 Page 118 - 121 Page 122-125 Page 126-127 Page 128-155

Executive Summary

This report identified the two key consumers of You&Me, the conscious consumer and the fashion family. The brand has been created tailoring specifics with these customers in mind. The range plan identifies pricing of our first winter trend, as well as giving an aesthetic insight into what sort of clothes You&Me will retail. The sourcing strategy is also identified. All of the garments will be ethically sourced and made in India. Ethical manufacture and social responsibility are key to the brands identity. All of the garments are made in accordance with the Global Organic Textile Standard (GOTS). This ensures not only a high quality finished product but that our production processes are carefully monitored to ensure that You&Me follows ethical procedures. The report identifies You&Meâ&#x20AC;&#x2122;s key competitors in both the ethical fashion field and style field, and evaluates the competition, as well as establishing the positioning of You&Me. The brand personality is fun, caring, friendly, trendy, natural, cool and passionate, the report shows how this has been reflected in the branding, promotion and marketing as well as its business approach. This report is concluded by evaluating the outlined proposal, and making suggestions as to future opportunities for the brand and potential for growth through national and international expansion.

Introduction introduction

This report was written to illustrate how the gap in the childrenswear market will be filled by the new eco-friendly brand You&Me. This has been done by carrying out investigative research into both the childrenswear market, and also the ethical fashion market, by analysing market reports from sources such as Mintel and Warc, interpreting current market trends and changes to demographics through sources such as LS:N Global and WGSN, as well as through primary market research. This has provided a base of information to build on and create the brand and surrounding business proposition. Evaluation of the macro and micro market environment has also served to gain a rounded knowledge of the market landscape. Primary research through questionnaires, interviews and focus groups has provided enriched information to inform choices surrounding You&Me, and to also give an insight into childrenswear consumers purchasing habits and brand preferences. Some limitations of the report are that there is little data, and lack of recent market reports on the ethical fashion market as it is still a up and coming market. Also that there are no specific reports or data on the niche market for ethical childrenswear. This report has been structured to submit a rounded and thorough brand proposal both visually and verbally, with reference to both qualitative and quantitative data.

The Proposal 9

1.1 Company Overview - Performance and Identity

FASHION and QUALITY, at the BEST PRICE 10

â&#x20AC;˘ The H&M Group comprises 6 independent brands, retailing in over 3,100 stores worldwide. â&#x20AC;˘ Two of these brands offer childrenswear - H&M Kids and COS

1.1 Company Overview - Performance and Growth

TOTAL PROFIT for the year 2013 - £1,615m 2012 - £1,587m 2011 - £1,489m

• Opened 356 stores in 2013 .

Expanding into South America

• 375 new stores planned to open in 2014.

Further expansion in to China and US as well as first stores in Australia and the Phillipines.

• Growth target of 10-15% per year • Total assets of £6,182m

1.1 Company Overview - Brands

H&M’s design team creates sustainable fashion for all, always at the best price. The collections include everything from dazzling party collections to quintessential basics and functional sportswear – for women, men, teenagers and children, and for every season or occasion.

2,628

Stores

Markets

Modern, timeless, tactile and functional. Exploring the concept of style over fashion, COS offers fashion pieces for the contemporary wardrobe. Here, high-end design and quality that lives beyond the seasons is available for women, men and children.

Stores

15 14

Markets

Cheap Monday’s collections combine influences from street fashion and subculture with a catwalk vibe. At the core of the brand is the on-trend denim range, completed by clothing and accessories with a highfashion feel. All at prices to suit almost any budget.

Stores

Markets

& Other Stories was launched in March 2013, offering an extensive selection of clothes, shoes, bags, jewellery and cosmetics. The brand is all about fashion, with particular focus on quality and design details as well as personal expression and styling.

Stores

Markets

Monki is a fashion experience â&#x20AC;&#x201C; clothes, accessories, and a store concept characterised by playfulness, creativity and colourful graphic design. The brandâ&#x20AC;&#x2122;s individualistic streetwear is aimed primarily at young women, but Monki is about personal style for all ages.

Stores

Markets

Fast-forward, Urban & Humble. Weekday is a jeansfocused fashion destination, offering contemporary designs at great prices. WEEKDAY carries in-house brands such as MTWTFSS WEEKDAY and Weekday Collection as well as external brands like Cheap Monday, Rodebjer, BACK and Whyred.

Stores

Markets

1.2 The New Brand

‘Over the next 5 years the Childrenswear market is forecast to expand by 16.2% to reach £7.6 billion in 2018.’

(Mintel, 2013a)

86% of parents would prefer to buy clothes for their children that had been manufactured in an eco-friendly way.

(Survey Monkey, 2013)

‘People are increasingly looking for companies to be charitable, ethical or environmentally responsible at both local and global levels.’

(Mintel, 2013b)

Both the childrenswear market and demand for ethical fashion are growing. However there is a lack of brands that produce ethical fashion for kids.

1.2 The New Brand

â&#x20AC;&#x2DC;There is an urgent need to prepare the young generation for a responsible lifestyle.â&#x20AC;&#x2122;

(Roebuck, 2012)

You&ME 18

What?

You&Me is a High Street childrenswear brand for the H&M Company We provide fashion forward clothes made from organic and natural fabrics, which are made in a way that is environmentally and socially responsible.

Who for?

You&Meâ&#x20AC;&#x2122;s target audience is trendy kids, from newborns to 12 year olds, who want to buy into ethical fashion.

Where?

You&Me will be available to shop online, and also in-store in their UK Flagship store in WHEREVER.

1.3 Unique Selling Point

It’s not just what we do, it’s how we do it that makes us unique! At You&Me, we care about our planet and everyone in it. Our clothes are made using 100% organic cottons, which is less harmful to the environment, and to the farmers who grow it. In addition, we only use natural dyes, you won’t find any nasty chemicals here. We aim to uphold a completely fair trade supply chain based on respect and transparency, this ensures everyone involved in the manufacture of our clothes is paid a fair wage in a safe and happy environment.

Friendly Fashion

Style is very important to us at You&Me. We follow fashion closely to make sure that we are bringing you the latest trends.

Organic cotton farmers in India 21

1.4 Ansoff Matrix

Market Development

Diversification

You&ME Product Development

Market Penetration

You&ME 22

Market Development • You&Me will continue to target customers who buy childrenswear from COS, the companies fashion savvy brand with a higher price point than H&M Kids. • However the new brand will target a new audience of consumers that are passionate about supporting ethical fashion, as well as those who want organic and natural products made with fewer chemicals. Product Development • You&Me will produce variants of existing products in new ways. The company already produced childrenswear, but none of its brands offer entirely ethical fashion ranges. The product will be developed to ensure that it is more socially and environmentally responsible and aware.

The Marketing Mix

2.1 The People

2.1.

The People

AB1 socio-economic group. They are likely to have well paid professional jobs, often earning enough to live comfortably with only one parent working full time. They live in the suburbs. They choose to buy eco-friendly, fair trade or organic products where possible. Avoiding chemicals and environmentally damaging brands. Buy organic foods from Waitrose or Whole Foods, and get seasonal fruit and veg delivered from Abel & Cole. Support local charities and often help at community events. Shop for childrens clothes online at ethical childrenswear boutiques, such as Frugi and Pigeon but also go to shops such as H&M for more fashion forward clothing, as they find there is a lack of variety in eco-friendly childrenswear. Enjoy outdoor activities such as family bike rides, visiting castles and strawberry picking, home baking with the kids and crafts. They go on skiing holidays in the winter, and camping or to the seaside in the summer. Sustainability is a priority to the purchasing habits of this family, so a new High street ethical childrenswear retailer would strongly appeal to them.

The Conscious Consumer 29

2.1.

The People

AB1 socio-economic group. Both parents work full time n professional positions, making them a busy family. They live just outside the city, but often spend the weekends in the countryside with their parents. They get their supermarket shopping from Ocado to fit in with their busy lifestyles. They enjoy shopping trips when they get the time but most often shop online. They buy from trend led brands such as Cos and Zara that offer mini styles for the children, as well as vintage pieces from Charity shops. They follow fashion very closely. Technology plays an important part in their lives, They children are from Generation i. They have their own gadgets and often play games on their parents smartphones. As a family they are quite creative, at the weekend they go pottery painting or to art galleries and exhibitions. For their holidays they like to travel to different European cities. With green living becomming more popular, they are aspiring to live a more eco-friendly lifestyle by changing some of their purchasing habits. They would like to buy into ethical fashion, however style and price is a higher priority for them. They have not been able to find any sustainable yet stylish childrenswear

The Fashion Family 31

2.1.1

Demographics

Growth of AB socio-economic group â&#x20AC;&#x153;Mintel forecasts the AB socio-economic group to grow by 6% to 14.8 million by 2016.â&#x20AC;? (Mintel, 2012c) This group have a higher income, and therefore more money to spend on their childrensâ&#x20AC;&#x2122; clothing, they are also more inclined to seek out quality clothes which will last. This is an encouraging sign for more premium childrenswear retailers.

Delayed motherhood England and Wales have seen a trend for women to wait until they are older to start a family, with the mean age of mothers at nearly 30 in 2010. Increase of successful fertility treatments and women wanting to have a career before children, are driving this trend. This often means that parents are in a more financially stable position when they have children, which increases the amount of money they have to spend on their clothes.

Babyboom The UK has been experiencing a babyboom. Birth rates reached the highest level since the 1970’s in 2012. “The country saw 813,200 births in the year to June 2012, the largest number since 1972.” (The Financial Times, 2013) This is a positive sign for the childrenswear market as more children suggest there will be more demand for kids clothes.

Fashion Focus “Two thirds of 7-12 year olds think it’s important to look good.” (Marketing Magazine, 2012) Children are focusing on their looks from a younger age. This highlights the importance for retailers to offer trend led childrenswear.

2.1.2

Spending Power

Mintel forecasts that the childrenswear market will grow to be worth ÂŁ7,599 million by 2018. (Mintel, 2013d)

The majority of You&Meâ&#x20AC;&#x2122;s consumers are from the AB1 socio-economic group. Many of them are in a strong financial position and have some disposable income, allowing them to buy childrenswear with a higher price point. The demographic trend for women to have children later in life, means our target audience are likely to be in a financially secure position before starting a family. This further increases their spending power.

Psycographic Profile

Early Adopters

Early Majority

Late Majority

Laggards

You&Me Consumers Innovators

2.1.3

2.5%

13.5%

34%

16%

The primary target audience for You&Me will lie within the early adopters and early majority, however as the brand becomes more established, this will grow to include the late majority .

2.1.4

Buying Attitudes

Need for speed Parents with young children and toddlers have listed speed as a priority when they shop for childrensear. They tend to prefer to buy clothes and try them on at home. To accomodate this we ensure our store is easy to navigate, spcious enough to wheel a pushchair around, and our staff are on hand and happy to help.

Take charge Parents of children up to 9 years tend to choose what their children wear, however once children reach early teens they begin to have more of a say in what they wear. Girls tend to have more of an intrest over their wardrobe then boys. â&#x20AC;&#x153;Over half of children aged 10-14, equivalent to 1.8 million children, choose their own clothes, highlighting how important it is for retailers to take into account what this age group look for.â&#x20AC;? (Mintel, 2013d) Once children reach early tweens, they start to go shopping without their parents and start choosing their own clothes. As a retailer we try to make sure that our brand and store environment is appealing to this age group. Our use of in-store technology will appeal to this age range.

Take charge Parents with children aged between 8-12 are the most likely to encourage their children to try clothes on before buying them. Our changing rooms are designed with this in mind, appealing to children in this age range.

Neutral Clothing Primary customer research has shown that parents prefer clothing that is not gender stereotyped, and uses more gender neautral colours. We ensure that our collections have varied colour palettes that are similar for boys and girls.

2.2 The Product

2.2

The Product Overview

The product is at the core of our brand - itâ&#x20AC;&#x2122;s what makes us unique. Fashion is important to us, so we take inspiration from the latest childrenswear fashion and trade shows, to make sure our collections are up to date and on trend. We forecast 8 exciting trends a year each with two drops, to keep our store looking fresh and new. (See appendix 4 for Trend Timetable) We strive to create gender neutral colour palettes and make sure that our trends for boyswear and girlswear coordinate. The material is also a key part of our product. We only use natural and organic fabrics, and ensure that all of our suppliers adhere to strict GOTS standards. See our selection of sample swatches for examples of some of the fabrics we use to create our garments.

43 PANTONE 19-0230 TPX

PANTONE 14-1323 TPX

PANTONE 13-5306 TPX

PANTONE 19-3921 TPX

PANTONE 13-6110 TPX

PANTONE 17-1563 TPX

PANTONE 17-4023 TPX

PANTONE 18-4711 TPX

PANTONE 13-6009 TPX

PANTONE 11-4202 TPX

PANTONE 19-4027 TPX

PANTONE 13-4308 TPX

PANTONE 16-0836 TPX

PANTONE 13-2010 TPX

Colour palettes from our AW 14/15 trend forecast Girlswear - Winter Sorbet

Boyswear - Alpine Explorer

2.2.1

Product Overveiw - Size Ranges

Mini Range Ages 0 to 24 months

Age Breakdown • Newborn • 0-3 months • 3-6 months • 6-12 months • 12-18 months • 18-24 months

With our mini range the focus is on comfort, making sure all of our garments are made from super soft and cosy materials, and the garments dont use uncomfortable fastenings.

Bodysuits and Babygrows

Knitwear

Dresses and Skirts

Coats and Jackets

Tops and T-Shirts

Shirts and Blouses

Trousers and Leggings

Accessories

Product Categories 45

2.2.2

CAD Range Plan - Mini Girls

Colour Block Dress £22 100% Organic Cotton All Store

Knitted Legging £16

100% Organic Fine Cotton Knit All Store

Peter Pan Bodysuit £14 100% Organic Cotton All Store

A/W 14 Mini Girls Winter Sorbet Collection 46

Long Sleeve Ballet Bodysuit £14 100% Organic Cotton All Store

Chinos £20

100% Organic Cotton All Store

Frill Sleeve T-shirt £15

100% Organic Cotton Jersey All Store

Extended Range Plan in Appendix 1 47

2.2.2

CAD Range Plan - Mini Boys

Long Sleeve Bodysuit £14 100% Organic Cotton All Store

Polo Shirt Bodysuit £14 100% Organic Cotton All Store

Sporty Jogger £16

100% Organic Cotton Jersey All Store

A/W 14 Mini Boys Alpine Explorer Collection 48

Hooded Jacket £20

100% Organic Cotton All Store

Worker Fit Jean £20

100% Organic Cotton Denim All Store

Lumberjack Shirt £22

100% Organic Heavy Cotton All Store

Extended Range Plan in Appendix 1 49

2.2.1

Product Overveiw - Size Ranges

Little Range Ages 2 to 6 years

Age Breakdown • 2-3 years • 3-4 years • 4-5 years • 5-6 years

Comfort combined with style is key to our Little range. Wearable styles are combined with gender neutral colour palettes. Some items from this range run through to the Kids range, but there are also some garmets more fitting for little kids.

Tops and T-Shirts

Knitwear

Dresses

Coats and Jackets

Skirts and Leggings

Shirts and Blouses

Trousers and Jeans

Accessories

Product Categories 51

2.2.2

CAD Range Plan - Little Girls

Colour Block Dress £26 100% Organic Cotton All Store

Pretty Parka £34

100% Organic Cotton All Store

Turn-up skinny Jean £25

100% Organic Cotton Denim All Store

A/W 14 Little Girls Winter Sorbet Collection 52

Zip-through Chunky Knit £30 100% Organic Cotton All Store

Pleated Layer Skirt £22 100% Organic Cotton All Store

Fine Jersey Slouch Jumper £24

100% Organic Cotton Jersey Knit All Store

Extended Range Plan in Appendix 1 53

2.2.2

CAD Range Plan - Little Boys

Henley T-Shirt £20

100% Organic Cotton All Store

Fisherman Jumper £32 100% Natural Wool All Store

Lumberjack Shirt £26

100% Organic Heavy Cotton All Store

A/W 14 Little Boys Alpine Explorer Collection 54

Shearling Jacket £42

Body - 100% Organic Cotton Collar - Organic Cotton Sherpa All Store

Worker Jean £28

100% Cotton Denim All Store

Overhead Jacket £35

100% Organic Cotton All Store

Extended Range Plan in Appendix 1 55

2.2.1

Product Overveiw - Size Ranges

Kids Range Ages 5 to 12 years

Age Breakdown • 5-6 years • 6-7 years • 7-8 years • 8-9 years • 9-10 years • 10-11 years • 11-12 years

Style is essential to our kids range. Although many items are carried through from the Little range, there is the addition of clothes with a less child-like style, whilst still being age appropriate.

Tops and T-Shirts

Knitwear

Dresses

Coats and Jackets

Skirts and Leggings

Shirts and Blouses

Trousers and Jeans

Accessories

Product Categories 57

2.2.2

CAD Range Plan - Girls

Colour Block Dress £32 100% Organic Cotton All Store

Zip-through Chunky Knit £34 100% Organic Cotton All Store

Sheer Mix Blouse £26 100% Organic Cotton All Store

A/W 14 Girls Winter Sorbet Collection 58

Pretty Parka £40

100% Organic Cotton All Store

Pleated Layer Skirt £25 100% Organic Cotton All Store

Turn-up skinny Jean £28

100% Organic Cotton Denim All Store

Extended Range Plan in Appendix 1 59

2.2.2

CAD Range Plan - Boys

Henley T-Shirt £24

100% Organic Cotton All Store

Shawl Neck Jumper £34 100% Organic Cotton All Store

Lumberjack Shirt £30

100% Organic Heavy Cotton All Store

A/W 14 Boys Alpine Explorer Collection 60

Shearling Jacket £48

Body - 100% Organic Cotton Collar - Organic Cotton Sherpa All Store

Worker Jean £30

100% Cotton Denim All Store

Overhead Jacket £40

100% Organic Cotton All Store

Extended Range Plan in Appendix 1 61

2.2.3

Sourcing Strategy

The natural and organic fabrics used to produce the clothes in You&Meâ&#x20AC;&#x2122;s clothing range is souced from farms across India. All organic cotton comes from farms which adhere to the GOTS. This ensures not only that we are using the highest quality organic cotton, but that we are environmentally friends, but also socially responsible. The clothes are also manufactured in India, we aim to use GOTS approved factories close to the textile farms in an affort to reduce C02 emmisions through transport. Our orders are purchased FOB, and are trasnported to us via ships as this emits less carbion dioxide than transporting orders by air.

2.2.4

Sustainable and Ethical Manufacture

Being friendly towards the planet and the people in it is a major factor in how we produce our clothing and the way we operate. We use natural and organic fabrics that are less environmentally damaging, using less water, C02 and chemicals to produce them. All of our packaging and labels are made from recycled materials, and our paper is supported by the FSC. All of our garments are GOTS certified. This not only means they are of a higher quality, it ensures that they are made through processes that do not negatively impact the environment, and it also supports fair practices in the work place. Our social policies make sure that all of the employees that work on our garments are paid a fair living wage, work in a safe and hygienic environment, are not forced to work excessive hours, and employment is chosen freely. In addition to this we work together with our suppliers to ensure that regular employment is given.

2.3 The Price

2.3.1

Pricing Policy and Arcitecture

At You&Me we stick to an even pricy policy with all of our prices being whole numbers. Our pricing architecture shows that our highest priced items are coats and jackets, and our entry price items are accessories such as socks and tights.

EXIT PRICE Coats and Jackets Knitwear Dresses Jeans and Trend bottons Trend tops and T-Shirts Core leggings and trousers Core T-Shirts Babygrows Accessories Socks and Tights

ENTRY PRICE 69

2.3.2

Price Band Matrix

Coats and Jackets Tops and T Shirts Shirts and Blouses Knitwear Trousers and Jeans Dresses Skirts and Leggings Bodysuits and Babygrows Accessories

Price 70

Breakdown of Price Band Matrix in Appendix 3 71

2.4 The Place

2.4.1

Distribution Strategy

We are following a similar distribution strategy as fellow H&M brand & Other Stories, by first opening a single flagship store in different key European cities, and also retailing online. This will give us an initial idea as to where our brand is most popular, and we can then penetrate these markets by gradually beginning to open additional stores in these countries. Our first flagship store will open in London in late 2014. At first distribution will be national, and primarily based in the UK until further flagship stores open in the rest of Europe late 2014/2015, when distribution will become international.

Merchandise

London flagship

Internet

2.4.2

Omni-channel Retailing

WISHLIST

NEW IN

MINI

KIDS

LITTLE

LOOKBOOK

KIDS CORNER

View our new collection ABOUT US

STORE LOCATOR

E-Commerce

You&ME

SIZING GUIDE

BASKET

E-commerce will play a large part of our sales strategy. Many other eco-friendly childrenswear brands are sold exclusively online, focusing on e-commerce will allow us to directly compete with them. E-commerce will also allow You&Me to penetrate a larger audience whilst the brand is still developing a portfolio of stores.

WISHLIST

NEW IN

MINI

LITTLE

KIDS

LOOKBOOK

KIDS CORNER

LITTLE New In Jersey Basics Tops & Shirts Trousers & Jeans Knitwear Dresses & Skirts Coats & Jackets Shirts & Blouses Accessories Promotions LOOKBOOK CREATE OUTFIT

ABOUT US

Girls STORE LOCATOR

Boys

You&ME 77

SIZING GUIDE

BASKET

2.5 The Position

2.5.1

Price / Style Matrix High Price

You&ME

Classic

Contemporary

Low Price 80

You&Me sits towards the contemporary styled brands, and a premium High Street price point.

2.5.2

Competitor Evaluation

Eco-friendly Competitors 82

• • • • • • • •

Colourful, playful logos None of You&Me’s eco-friendly competitors have stand alone stores Sold primarily through e-commerce Narrow product range - none of these brands a large collections of styles Plain and basic clothing None of these competitors are particularly fashion forward. Few cater for early tween market Strong ethical values

Age Range Newborn - 6 years 6 months - 8 years Newborn - 10 years

You&ME

Newborn - 12 years 83

2.5.2

Competitor Evaluation

Price and Style Competitors 84

• • • • • • • • •

None of these brands are exclusive for children - they are all part of a parent brand. Because none of these are exclusively childrenswear brands, their stores, marketing and branding is not aimed at children. All have black and white, plain logos Similar on trend, mini me collections Varied age ranges French Connection Kids is not widely available in UK Topshop Mini only retails girls clothes. All available through e-commerce Zara has the lowest price points of the style competitors, FC Kids has the highest.

Age Range Newborn - 18 months 1 year - 8 years 3 years - 12 years Newborn - 13 years Newborn - 14 years

You&ME

Newborn - 12 years 85

2.6 The Promotion

2.6.1

Branding

Fun Caring, Friendly Fun, Trendy, Stylish, Natural, Cool, Passionate Environmentally and socially responsible Feel good about buying eco-friendly Organic and natural materials mean no chemical transfer Fashion forward, sustainable, eco-friendly Contemporary on trend style with a premium high street price tag

Friendly Fashion

Brand DNA Pyramid 88

Personality Values Emotional Benefits Physical Benefits Attributes Positioning Essence

2.6.1

Branding

You&ME The name You&Me creates a feeling of cohesion and togetherness, which promotes the brand ethos, of being friendly and caring for the planet and the people in it. The logo is all in capitals to ensure that it is impactful and stands out, this also gives a sense of authority and tradition. The font ensures that the logo looks fun and playful - fitting for a childrenswear brand without being too unsophisticated. The duck egg blue colour is gender neutral, appealing to girls and boys, and is not too harsh or bright, in keeping with the organic and natural ethos. The You&Me rabbit is our brand motif. This smaller logo is used on the majority of clothing to ensure that the brand is still subtly recognisable.

Branding 90

All of our packaging and labels are made from recycled paper certifed by the FSC, reflecting our brand DNA.

Packaging 91

2.6.2

Experiential Retailing

In some of our swing tags on our garments we will have RFID tags. When the item is placed on the hook, the RFID tag will activate content on the interactive touch screen beside it. There will be two of these interactive stations in our flagship store. Once the RFID tag has been registered, the screen will display the relevant garment. Four main categories are then available, explaining in a child-friendly way different things about the item. • Where? - This shows the where the item was grown and made, also the route it takes to get to the store. • How? - This will explain how the garment has been made using no nasty chemicals, using organic methods. • Who? This will reveal the people behind the product. Showing some of the farmers and factory workers who were involved in making that item and what they did. • What? This section will focus on the product, showing its composition, alternative colourways, size options and availability.

How?

re? e h W

t? a h W

Who ?

T-Shirt Dress

Interactive touch screen 93

2.6.3

Intergrated Marketing Strategy - Social Media

you&me

2.6.3

Intergrated Marketing Strategy - Advertising

We will have different types of advertising campaigns â&#x20AC;˘ Our first advertising campaigns will reflect our fun and trendy brand personality, whilst showcasing our style of clothing. This will primarily appeal to our target more fashion focused target customer. â&#x20AC;˘ Our second advertising campaign will, emphasise our ethical policies, focusing on how our products are made, and the materials they are made from. This will primarily appeal to the more eco-conscious customer, whilst also informing our customer base as a whole on our responsible policies.

You&ME

You&ME 96

Supporting 100% organic cotton

Friendly Fashion

You&ME

100% Organic Cotton

You&ME 97

You&ME

2.6.3

Intergrated Marketing Strategy - Direct Marketing

To increase our customer database we will run an in store promotion, offering customers 10% of their next purchase when they sign up to our online newsletter. This will not only increase customer loyalty, it will encourage a second purchase. Once we have our customers email address we can use this for direct marketing. Emailing them our monthly newsletter, and also emailing them promoting new collections and new offers.

Shhh.... Sign up to our email newsletter and save 10% off your next purchase! Name..................................................................................................... Email Address.................................................................................. 99

2.6.3

Intergrated Marketing Strategy - Target Media

To increase brand awareness we will advertise in parenting magazines. We will run advertorials in publications such as Baby London and Baby Surrey which will target an audience close to our flagship London store, these magazines will also target fashion conscious parents. We will advertise in Juno magazine and The Green Parent, these will target our consumers who already are intrested in sustainable living. We will also advertise in Mother & Baby magazine, and Gurgle magazine. These have more a more generalised readership, and will introduce the brand to a wider audience, whilst also informing about eco-friendly childrenswear.

100

To further increase brand awareness we will collaborate with various parenting, fashion, ethical and mummy blogg, offering promotions for readers of these blogs.

101

2.7 Persuasion

2.7

Persuasion

Our product is key to our brand. We stand our from the majority of other childrenswear brands by creating a product that is both fashion forward and environmentally and socially responsible. Our collections form the basis of our brand identity. Positioning Consumers will buy into the brand because there are few direct competitors who produce eco-friendly clothing for children that is still on trend. This lack of competition leaves a gap for You&Me to become the leading brand for ethical childrenswear. The advertising and promotion of You&Me adds further to the brand story, engaging the customer by offering both visually appealing and informative campaigns. Our store environment is reflective of our brand DNA, using new technology to engage the customer and also bringing ethical childrenswear to the British high street. With sustainability and social responsibility increasingly becoming a hot topic, the demand for ethical fashion will grow, also helping You&Me to grow as a brand.

104

105

Business Planning

3.1

Sales Revenue

Sales revenue for You&Me will be generated from in store and e-commerce purchases.

In-store sales

E-commerce

Sales Revenue

108

3.2

Expenditure

Key Costs

Because this is a new brand start up, initial expenditure will be very high. However, this wil gradually lower as the brand continues to operate. • • • • • • • •

Manufacturing costs - stock Flagship setup costs Advertising Campaign PR Design Costs Visual Merchandising Digital Marketing E-commerce design and setup

Cashflow document in Appendix 5 109

3.3

Capital Funding

You&Me will be funded by the H&M Company. It would be of interest to the group to improve their ethical standing by creating a new eco-friendly brand after recently being implicated in garment factory incidents such as the collapse of the Rana Plaza. Investing in a new brand would also help to acheive the Companyâ&#x20AC;&#x2122;s growth target, and would be the first childrenswear only brand for them. H&M currently is currently in a strong financial position, and has the capital to fund a start up brand.

110

• Total sales for 2012-2013 amounted to 128,562m (SEK) / £11,882m • Gross Profit for 2012-2013 - 76,033m (SEK) / £7,027m • Operating Profit for 2012-2013 - 22,168m (SEK) / £2,049m • Consolidated Assets on 30th November 2013 - 65,676m (SEK) / £6,070m • Total Liabilities at end of 2013 - 20,428m (SEK) / £1,888m • Net Assets at end of 2013 - 45,248m (SEK) / £4,182m • Liquid funds at end of 2013 - 13,918m (SEK) / £1,286m All figures taken from H&M Full Year Report 2013, and apply to the year 1st December 2012 - 30th November 2013

111

Swot

4.1

Strengths

• Strong USP • Ethics within the fashion industry is becomming a more important issue • Transparancy is encouraged by clothing brands • Few competitors making fashionable eco-friendly childrenswear • Socially and environmentally responsible • A moral brand • Charity collaboration • Use of new technologies in flagship store • Backed by large company with fashion expertise • Trend for greener living increasing demand for ethical fashion • Strong brand DNA • Fun and friendly brand identity

114

4.2

Weaknesses

Weaknesses • • • • •

Higher price point than many High Street childrenswear brands Ethical fashion is still a niche market Higher costs of manufacture - lower margins A new brand - not widely recognised - no customer loyalty H&M is not usually assiciated with ethical fashion

115

4.3

Opportunities

Opportunities • • • • • •

To expand the brand into new European markets Market penetration of UK Collaborate with eco-friendly designers Opportunity to expand other product areas Change consumers perception of eco-friendly childrenswear Change consumers perception of H&M and increase moral standing • Ethical fashion is a growing market • No major player in ethical childrenswear with stand-alone store could dominate this market • Expand into new markets through concessions

116

4.4

Threats

Threats • Cheaper non-ethical childrenswear brands • Fashion brands expanding into ethical market • Initial costs of starting an new brand may result in low or no profit while brand is young • Lack of current customer base

117

Conclusions

You&Me has the potential to become the leading brand for ethical childrenswear. The product is the core of the brand, and the collections have been carefully put together to showcase this. Issues of environmental and social responsibility in fashion have become and will continue to become more poignant, You&Meâ&#x20AC;&#x2122;s strong stance on these issues puts it at the forefront of ethical childrenswear and makes it stand out from other brands. As a start up brand, it will take time to develop a customer base, and establish You&Me as a popular brand, however being supported by such a large company, with financial backing and fashion expertise will provide some stability. You&Me has great potential for future development. Expansion into the UK market, as well as international markets could help to highlight and raise awareness about social and environmental responsibility in the fashion industry, and make it a global brand. Other opportunities for the growth of You&Me could involve eco-friendly designer collaborations, and opportunities to work with additional charities. The brand will be sustained by the growing demand for brands to be more transparent about their supply chain, as the ethical fashion market continues to grow, so will You&Me

120

121

Image References

PAGE 10 H&M LOGO http://sevendesktop.com/wp-content/uploads/2013/10/HM-logo_CMYK-1024x657.png PAGE 11 KIDS http://www.alisveris-cini.com/wp-content/uploads/2010/10/hm8.jpg PAGE 14-15 http://sevendesktop.com/wp-content/uploads/2013/10/HM-logo_CMYK-1024x657.png http://lilyincanada.files.wordpress.com/2013/08/hm-conscious-collection.jpg http://www.cosstores.com/Assets/Images/COS-logo-retina.png http://www.fashioneditorials.com/wp-content/uploads/2011/08/cos.jpg http://www.mode.net/wp-content/uploads/2010/09/Monki-Logo.jpg http://2.bp.blogspot.com/-P74fOdJ2M3s/TsycChnxg-I/AAAAAAAAEZw/ODeKrkYkr7w/s1600/monki4.jpg http://lifestylehunters.com/media/uploads/2012/06/weekday-logo.jpg http://shop.weekday.com/Content/CmsContent/article-editorial/MTWTFSS_weekday_aw13_16.jpg http://skullsproject.files.wordpress.com/2012/04/cheapmonday_logo.jpg http://goosebumpsmag.files.wordpress.com/2013/01/cheap-monday-ss-2013-collection.jpg http://www.stories.com/Assets/images/logotype.png http://www.highsnobette.com/news/wp-content/uploads/2013/01/OtherStories-HM-lookbook11-382x540.jpg PAGE 17 http://lp.hm.com/hmprod?set=key[source],value[/environment/2014/2DV_0123_020R.jpg]&set=key[rotate],value[-0.4]&set=key[width],value[4375]&set=key[height],value[5116]&set=key[x],value[342]&set=key[ y],value[549]&set=key[type],value[FASHION_FRONT]&hmver=1&call=url[file:/product/full] PAGE 19 http://lp.hm.com/hmprod?set=source[/environment/2014/2KV_0207_008R.jpg],rotate[4.45],width[5906],height[6905],x[337],y[506],type[FASHION_FRONT]&hmver=2&call=url[file:/product/full] PAGE 21 http://www.peopletreefoundation.org/uploads/1/5/5/1/15517332/__1857376_orig.jpg PAGE 23 http://lp.hm.com/hmprod?set=key[source],value[/environment/2014/2FV_0412_007R.jpg]&set=key[rotate],value[-1.1]&set=key[width],value[4022]&set=key[height],value[4702]&set=key[x],value[503]&set=key[ y],value[176]&set=key[type],value[FASHION_FRONT]&hmver=1&call=url[file:/product/full] PAGE 26 http://lp.hm.com/hmprod?set=source[/environment/2013/2BV_0813_005R.jpg],rotate[0.25],width[4320],height[5051],x[395],y[435],type[FASHION_FRONT]&hmver=3&call=url[file:/product/full] PAGE 28 http://bleubirdvintage.typepad.com/.a/6a00e554f1ae9388330147e3e774fa970b-800wi http://bleubirdvintage.typepad.com/.a/6a00e554f1ae938833014e608c6574970c-800wi http://bleubirdvintage.typepad.com/.a/6a00e554f1ae938833014e8767f10e970d-800wi http://bleubirdvintage.typepad.com/.a/6a00e554f1ae9388330147e3e8ce53970b-800wi Page 29 http://bleubirdvintage.typepad.com/.a/6a00e554f1ae938833014e608c670c970c-pi http://www.airpano.ru/files/barcelona_02_big.jpg 123

http://www.airpano.ru/files/barcelona_02_big.jpg http://cdn.toucharcade.com/wp-content/uploads/2012/10/apple-ipad-mini-pr.jpeg http://techcapsule.com/wp-content/uploads/2013/06/Blogger-com-logo.jpg http://upload.wikimedia.org/wikipedia/commons/5/5a/American_Apparel_logo.jpg http://bleubirdvintage.typepad.com/.a/6a00e554f1ae9388330154367bdd90970c-800wi http://2.bp.blogspot.com/--u53p4Cz3ko/UKTPaYwIUuI/AAAAAAAABrk/jjnU-P7vfKo/s1600/Baby+London+cover.jpg PAGE 30 http://bleubirdvintage.typepad.com/.a/6a00e554f1ae938833017ee74965b1970d-800wi http://bleubirdvintage.typepad.com/.a/6a00e554f1ae938833017d3fd50273970c-pi http://bleubirdvintage.typepad.com/.a/6a00e554f1ae938833017c35a6515a970b-800wi http://bleubirdvintage.typepad.com/.a/6a00e554f1ae938833017c35a62172970b-800wi PAGE 31 http://extremecouponingmom.ca/wp-content/uploads/2013/05/whole-foods-market-logo.png http://holtwhites.co.uk/wp-content/uploads/2013/01/waitrose-logo.jpg http://myzerowaste.com/wp-content/uploads/2009/02/abelcoleheader.gif https://static.groupon.co.uk/69/10/1365008251069.jpg http://www.choralis.co.uk/wp-content/uploads/2012/04/Company-Logos-The-White-Company.jpg http://bleubirdvintage.typepad.com/.a/6a00e554f1ae93883301630040b63d970d-800wi PAGE 33 http://static.zara.net/photos//2013/I/0/3/p/1473/550/711/2/w/1920/1473550711_1_1_1.jpg?timestamp=1380880555730 PAGE 35 http://static.zara.net/photos//2013/I/0/3/p/7134/552/926/2/w/400/7134552926_1_1_1.jpg?timestamp=1382544258275 PAGE 37 http://static.zara.net/photos//2013/I/0/3/p/6192/542/701/2/w/1024/6192542701_9_1_1.jpg?timestamp=1376042398776 PAGE 39 http://static.zara.net/photos//2013/I/0/3/p/5992/553/431/2/w/400/5992553431_1_1_1.jpg?timestamp=1375887870658 PAGE 40 http://lp.hm.com/hmprod?set=source[/environment/2014/2MV_0008_010R.jpg],rotate[0.3],width[4030],height[4712],x[1324],y[381],type[FASHION_FRONT]&hmver=0&call=url[file:/product/full] PAGE 44 http-//www.hm.com/josh/media/sys_master/9335669293086/newborn PAGE 50 http://lp.hm.com/hmprod?set=key[source],value[/environment/2014/2NV_0137_014R.jpg]&set=key[rotate],value[-3.35]&set=key[width],value[3465]&set=key[height],value[4052]&set=key[x],value[1317]&set=k ey[y],value[809]&set=key[type],value[FASHION_FRONT]&hmver=0&call=url[file:/product/large] http://lp.hm.com/hmprod?set=key[source],value[/environment/2014/2LV_0413_012R.jpg]&set=key[rotate],value[-0.8]&set=key[width],value[4577]&set=key[height],value[5352]&set=key[x],value[1301]&set=key[ y],value[436]&set=key[type],value[FASHION_FRONT]&hmver=0&call=url[file:/product/large] PAGE 56 http://lp.hm.com/hmprod?set=key[source],value[/environment/2014/2OV_0539_007R.jpg]&set=key[rotate],value[1]&set=key[width],value[3918]&set=key[height],value[4582]&set=key[x],value[1012]&set=key[y] ,value[421]&set=key[type],value[FASHION_FRONT]&hmver=0&call=url[file:/product/large] http://lp.hm.com/hmprod?set=key[source],value[/environment/2013/2AE_0223_009R.jpg]&set=key[rotate],value[0]&set=key[width],value[4523]&set=key[height],value[5289]&set=key[x],value[263]&set=key[y],v 124

alue[117]&set=key[type],value[FASHION_FRONT]&hmver=0&call=url[file:/product/large] PAGE 63 http-//www.alnatura.de/~/media/Images/Content/Maerkte/Exklusiv%20bei%20AA/PWO/Textile%20Kette/ People-wear-organic_01-Textile-Kette_Anbau_Ernte-Alternative PAGE 65 http-//www.arula-textile.com/uploads/pics/GOTS_logo_02 http-//static.squarespace.com/static/518d86cae4b02f38abf7aa53/t/51b67f37e4b04a604020f3 3e/1370914621682/Zameen_Organic_India PAGE 66 http://lp.hm.com/hmprod?set=source[/environment/2014/2NV_0193_008R.jpg],rotate[2.3],width[4326], height[5058],x[890],y[767],type[FASHION_FRONT]&hmver=0&call=url[file:/product/full] http://lp.hm.com/hmprod?set=source[/environment/2013/2AQ_0145_002R.jpg],rotate[-0.5],width[4289] ,height[5015],x[351],y[320],type[FASHION_FRONT]&hmver=0&call=url[file:/product/full] PAGE 72 http://lp.hm.com/hmprod?set=source[/environment/2013/2AV_0264_002R.jpg],rotate[-3.9],width[4642] ,height[5428],x[493],y[223],type[FASHION_FRONT]&hmver=1&call=url[file:/product/full] PAGE 75 http-//libertychurchlondon.com/wp-content/uploads/2013/01/london1 PAGE 78 http://lp.hm.com/hmprod?set=source[/environment/2013/2AV_0408_003R.jpg],rotate[-0.1],width[3990] ,height[4665],x[575],y[430],type[FASHION_FRONT]&hmver=0&call=url[file:/product/full] PAGE 80-84 ALL BRAND LOGOS FROM GOOGLE IMAGES PAGE 81 http://lp.hm.com/hmprod?set=source[/environment/2013/2BV_0213_004R.jpg],rotate[-3.6],width[4152] ,height[4854],x[579],y[220],type[FASHION_FRONT]&hmver=0&call=url[file:/product/full] PAGE 86 http://lp.hm.com/hmprod?set=source[/environment/2013/2AE_0213_005R.jpg],rotate[0],width[3905],he ight[4566],x[628],y[351],type[FASHION_FRONT]&hmver=0&call=url[file:/product/full] PAGE 89 http-//3.bp.blogspot.com/-G3sc7Xe2flg/UqYDunfYZgI/AAAAAAABD0w/xn57H0X0qPU/s1600/ZARA-KidsWinter-2013-04 PAGE 96 IMAGES USED FOR ADVERTISING CAMPAIGNS http-//www.fashionmention.com/wp-content/uploads/2013/12/05/ZARA-Kids-Winter-2013-DecemberLookbook-28 http-//www.fashionstrend.co.uk/wp-content/uploads/Latest-Zara-Look-Book-Winter-Dresses-2013-2014-forKids-8

AmandaHousePhotography_198300_izFsjk6W_0-1905x525 http-//popularphotographybiz.com/wp-content/uploads/2014/02/vintage-flower-fieldphotographychild-children-colours-cool-fashion-field-flowers-photography-rpe7nevd http-//1.bp.blogspot.com/--mwY6uYP5ao/UoMDkp2zwZI/AAAAAAAAIVQ/C-jaGIAwMpQ/s1600/ DSC_1167 PAGE 99 http-//media-cache-ak0.pinimg.com/736x/38/79/6b/38796b3b04fd403f3f4162a35b52d8be PAGE 100 MAGAZINE COVERS FROM GOOGLE IMAGES PAGE 101 BLOG LOGOS FROM GOOGLE IMAGES PAGE 102 http://lp.hm.com/hmprod?set=source[/environment/2014/2BV_0181_013R.jpg],rotate[-0.8],wi dth[4489],height[5248],x[482],y[192],type[FASHION_FRONT]&hmver=1&call=url[file:/product/ full] PAGE 109 http://lp.hm.com/hmprod?set=key[source],value[/environment/2014/2LV_0355_018R.jpg]&se t=key[rotate],value[0]&set=key[width],value[5029]&set=key[height],value[5880]&set=key[x],val ue[995]&set=key[y],value[67]&set=key[type],value[FASHION_FRONT]&hmver=0&call=url[file:/ product/large] PAGE 111 http://lp.hm.com/hmprod?set=key[source],value[/environment/2014/2NV_0148_006R. jpg]&set=key[rotate],value[1.55]&set=key[width],value[3897]&set=key[height],value[ 4557]&set=key[x],value[1243]&set=key[y],value[498]&set=key[type],value[FASHION_ FRONT]&hmver=0&call=url[file:/product/large] PAGE 114 & 116 http-//1.bp.blogspot.com/-mhn_gVJNdLg/UnxolKMVXKI/AAAAAAAAMKM/_ykitAunJpY/ s1600/1311408000_1_1_1_web PAGE 115 & 117 http-//www.fashionstrend.co.uk/wp-content/uploads/Latest-Zara-Look-Book-Winter-Dresses-20132014-for-Kids-5

http-//blog.twobrightlights.com/wp-content/uploads/2013/09/45788/House__ 125

Bibliography

The Financial Times. (2013). Baby boom drives UK population growth. Available: http://www.ft.com/cms/s/0/7a42c2de-0008-11e3-9c40-00144feab7de.html#axzz2l1CvbZYp. Last accessed 18th November 2013. Marketing Magazine. (2012). Sector Insight: Childrenswear. Available: http://www.marketingmagazine.co.uk/article/1129364/sector-insight-childrenswear. Last accessed 25th November 2013. Mintel. (2013a). Childrenswear - UK - November 2013 - Market Size and Forecast. Available: http://academic.mintel.com/display/687440/. Last accessed 13th March 2014. Mintel. (2013b). Making Fashion More Transparent. Available: http://academic.mintel.com/display/667045/?highlight. Last accessed 13th March 2014. Mintel. (2013c). Childrenswear - UK - November 2013 - Trend Applications. Available: http://academic.mintel.com/display/687436/. Last accessed 24th March 2014. Mintel. (2013d). Childrenswear - UK - November 2013 - How children get new clothes. Available: http://academic.mintel.com/display/687451/. Last accessed 28th March 2014. Roebuck. (2012). How can we educate our youth about fast fashionâ&#x20AC;&#x2122;s harmful effects?. Available: http://www.ecouterre.com/how-can-we-educate-our-youth-about-fast-fashions-harmful-effects/ fast-fashion-youth-3/. Last accessed 20th March 2014. Survey Monkey. (2013) EFMM6001 - Childrenswear. Available: https://www.surveymonkey.com/MySurvey_EditorFull.aspx?sm=YOggP_2BaXa4aRLcERHwe8NPpssCXMttExNROhxB4gHNQ

127

Appendices

129

Appendix 1 STYLE

SKETCH

CAD Range Plan - Mini Girls FABRIC

COLOURS

SIZES

RRP Actual Margin Total Total £ Cost achieved quantity Cost £22.00 £7.98 63.73% 75

£598.50

£1,650.00

Total Margin 63.73%

Total Retail

Newborn - 18-24months Grey/Chalk Colour Block Dress

100% Organic Cotton

£22.00

£7.98

63.73%

115

£917.70

£2,530.00

63.73%

£22.00

£7.98

63.73%

£758.10

£2,090.00

63.73%

£16.00

£6.05

62.19%

110

£665.50

£1,760.00

62.19%

£16.00

£6.05

62.19%

£453.75

£1,200.00

62.19%

£16.00

£6.05

62.19%

£574.75

£1,520.00

62.19%

£16.00

£6.05

62.19%

£453.75

£1,200.00

62.19%

£14.00

£5.32

62.00%

£478.80

£1,260.00

62.00%

£14.00

£5.32

62.00%

£478.80

£1,260.00

62.00%

£14.00

£5.32

62.00%

£399.00

£1,050.00

62.00%

Newborn - 18-24months Pink/Chalk Newborn - 18-24months Mint/Chalk Newborn - 18-24months Navy Newborn - 18-24months Knitted Legging

100% Organic Fine Cotton Knit

Grey Newborn - 18-24months Pink Newborn - 18-24months

Newborn - 18-24months Pink Peter Pan BodySuit

100% Organic Cotton Newborn - 18-24months Navy Newborn - 18-24months Mint

A/W 14 Mini Girls Winter Sorbet Collection Range Plan 130

STYLE

SKETCH

FABRIC

COLOURS

SIZES

RRP Actual Margin Total Total £ Cost achieved quantity Cost £14.00 £5.08 63.71% 80

Total Retail £406.40 £1,120.00

Total Margin 63.71%

Newborn - 18-24months Mint/Blue £14.00

£5.08

63.71%

100

£508.00

£1,400.00

63.71%

£14.00

£5.08

63.71%

£406.40

£1,120.00

63.71%

£14.00

£5.08

63.71%

100

£508.00

£1,400.00

63.71%

£20.00

£7.50

62.50%

100

£750.00

£2,000.00

62.50%

£20.00

£7.50

62.50%

£525.00

£1,400.00

62.50%

£20.00

£7.50

62.50%

£637.50

£1,700.00

62.50%

£15.00

£5.64

62.40%

100

£564.00

£1,500.00

62.40%

£15.00

£5.64

62.40%

£451.20

£1,200.00

62.40%

£15.00

£5.64

62.40%

110

£620.40

£1,650.00

62.40%

£123.84

62.83%

1,800 £11,155.55

£30,010.00

62.83%

Newborn - 18-24months Long sleeved ballet bodysuit

100% Organic Cotton

Blue/Chalk Newborn - 18-24months Navy/Pink Newborn - 18-24months Pink/Chalk Newborn - 18-24months Blue

Chinos

100% Organic Cotton Newborn - 18-24months Mint Newborn - 18-24months Chalk Newborn - 18-24months Navy

Frill Sleeve Top

100% Organic Cotton Jersey

Newborn - 18-24months Grey Newborn - 18-24months Pink

TOTAL

131

Appendix 1

STYLE

SKETCH

CAD Range Plan - Mini Boys

FABRIC

COLOURS

SIZES

RRP Actual Margin Total Total Total Retail £ Cost achieved quantity Cost £22.00 £8.05 63.41% 200 £1,610.00 £4,400.00

Total Margin 63.41%

Newborn - 18-24months Blue Check/Ice Lumberjack Shirt

100% Heavy Organic Cotton

£22.00

£8.05

63.41%

200

£1,610.00

£4,400.00

63.41%

£22.00

£8.05

63.41%

170

£1,368.50

£3,740.00

63.41%

£20.00

£7.60

62.00%

270

£2,052.00

£5,400.00

62.00%

£20.00

£7.60

62.00%

230

£1,748.00

£4,600.00

62.00%

£20.00

£7.60

62.00%

250

£1,900.00

£5,000.00

62.00%

£20.00

£6.77

66.15%

220

£1,489.40

£4,400.00

66.15%

£20.00

£6.77

66.15%

180

£1,218.60

£3,600.00

66.15%

£20.00

£6.77

66.15%

200

£1,354.00

£4,000.00

66.15%

Newborn - 18-24months Red Check/Navy Newborn - 18-24months Green Check/Blue Newborn - 18-24months Dark Wash

Worker Fit Jean

100% Organic Cotton Denim

Newborn - 18-24months Light Wash Newborn - 18-24months Mid Wash Newborn - 18-24months Ice

Hooded Jacket

100% Organic Cotton Newborn - 18-24months Red Newborn - 18-24months Mint

A/W 14 Mini Boys Alpine Explorer Range Plan 132

STYLE

SKETCH

FABRIC

COLOURS

SIZES

RRP Actual Margin Total Total Total Retail £ Cost achieved quantity Cost £14.00 £5.08 63.71% 300 £1,524.00 £4,200.00

Total Margin 63.71%

Newborn - 18-24months Blue/Red £14.00

£5.08

63.71%

260

£1,320.80

£3,640.00

63.71%

£14.00

£5.08

63.71%

260

£1,320.80

£3,640.00

63.71%

£14.00

£5.08

63.71%

300

£1,524.00

£4,200.00

63.71%

£14.00

£4.95

64.64%

260

£1,287.00

£3,640.00

64.64%

£14.00

£4.95

64.64%

280

£1,386.00

£3,920.00

64.64%

£14.00

£4.95

64.64%

260

£1,287.00

£3,640.00

64.64%

£16.00

£6.10

61.88%

260

£1,586.00

£4,160.00

61.88%

£16.00

£6.10

61.88%

240

£1,464.00

£3,840.00

61.88%

£16.00

£6.10

61.88%

240

£1,464.00

£3,840.00

61.88%

£120.73

63.56%

4,580 £28,514.10

£78,260.00

63.56%

Newborn - 18-24months Long Sleeved Bodysuit

100% Organic Cotton

Salmon/Blue Newborn - 18-24months Forest/Mint Newborn - 18-24months Navy/Ice Newborn - 18-24months Mint

Short Sleeved Bodysuit

100% Organic Cotton Newborn - 18-24months Blue Newborn - 18-24months Ice Newborn - 18-24months Navy/Blue

Sporty Jogger

100% Organic Cotton Jersey

Newborn - 18-24months Ice/Blue Newborn - 18-24months Forest/Mint

TOTAL

133

Appendix 1

STYLE

SKETCH

CAD Range Plan - Little Girls

FABRIC

COLOURS

SIZES

RRP Actual Margin Total Total Total Retail £ Cost achieved quantity Cost £26.00 £9.55 63.27% 240 £2,292.00 £6,240.00

Total Margin 63.27%

2-3years to 5-6 years Grey/Chalk Colour Block Dress

100% Organic Cotton

£26.00

£9.55

63.27%

200

£1,910.00

£5,200.00

63.27%

£26.00

£9.55

63.27%

220

£2,101.00

£5,720.00

63.27%

£34.00

£12.76

62.47%

200

£2,552.00

£6,800.00

62.47%

£34.00

£12.67

62.74%

180

£2,280.60

£6,120.00

62.74%

£34.00

£12.67

62.74%

160

£2,027.20

£5,440.00

62.74%

£25.00

£9.40

62.40%

230

£2,162.00

£5,750.00

62.40%

£25.00

£9.40

62.40%

260

£2,444.00

£6,500.00

62.40%

£25.00

£9.40

62.40%

230

£2,162.00

£5,750.00

62.40%

2-3years to 5-6 years Pink/Chalk 2-3years to 5-6 years Mint/Chalk 2-3 years to 4-5 years Navy Pretty Parka

100% Organic Cotton 2-3 years to 4-5 years Grey 2-3 years to 4-5 years Pink 2-3 years to 4-5 years Blue wash

Turn-up Skinny Jean

100% Organic Cotton Denim

2-3 years to 4-5 years Navy wash 2-3 years to 4-5 years Grey wash

A/W 14 Little Girls Winter Sorbet Range Plan 134

STYLE

SKETCH

FABRIC

COLOURS

SIZES

RRP Actual Margin Total Total Total Retail £ Cost achieved quantity Cost £30.00 £11.32 62.27% 180 £2,037.60 £5,400.00

Total Margin 62.27%

2-3years to 5-6 years Blue Zip through Chunky knit

100% Organic Cotton

£30.00

£11.32

62.27%

200

£2,264.00

£6,000.00

62.27%

£30.00

£11.32

62.27%

200

£2,264.00

£6,000.00

62.27%

£22.00

£8.22

62.64%

200

£1,644.00

£4,400.00

62.64%

£22.00

£8.22

62.64%

180

£1,479.60

£3,960.00

62.64%

£22.00

£8.22

62.64%

180

£1,479.60

£3,960.00

62.64%

£24.00

£9.00

62.50%

200

£1,800.00

£4,800.00

62.50%

£24.00

£9.00

62.50%

200

£1,800.00

£4,800.00

62.50%

£24.00

£9.00

62.50%

200

£1,800.00

£4,800.00

62.50%

£24.00

£9.00

62.50%

240

£2,160.00

£5,760.00

62.50%

£180.57

62.62%

3,660 £36,499.60

£97,640.00

62.62%

2-3years to 5-6 years Navy 2-3years to 5-6 years Pink 2-3years to 4-5 years Pink/Chalk

Pleated Layer Skirt

100% Organic Cotton 2-3years to 4-5 years Grey/Mint 2-3years to 4-5 years Chalk/Mint 2-3years to 5-6 years Mint

Fine Jersey Jumper

100% Organic Cotton Jersey Knit

2-3years to 5-6 years Chalk 2-3years to 5-6 years Pink 2-3years to 5-6 years Navy

TOTAL

135

Appendix 1

STYLE

SKETCH

CAD Range Plan - Little Boys

FABRIC

COLOURS

Body 100% Organic Cotton Collar & Detailing Navy/White Organic Cotton Sherpa

Shearling Jacket

SIZES

RRP Actual Margin Total Total Total Retail £ Cost achieved quantity Cost £42.00 £15.50 63.10% 180 £2,790.00 £7,560.00

Total Margin 63.10%

2-3years to 5-6 years

£42.00

£15.50

63.10%

150

£2,325.00

£6,300.00

63.10%

£28.00

£10.55

62.32%

230

£2,426.50

£6,440.00

62.32%

£28.00

£10.55

62.32%

200

£2,110.00

£5,600.00

62.32%

£28.00

£10.55

62.32%

260

£2,743.00

£7,280.00

62.32%

£35.00

£13.00

62.86%

150

£1,950.00

£5,250.00

62.86%

£35.00

£13.00

62.86%

190

£2,470.00

£6,650.00

62.86%

£35.00

£13.00

62.86%

190

£2,470.00

£6,650.00

62.86%

2-3years to 5-6 years Blue/White 2-3 years to 4-5 years Light Wash Worker Jean

100% Organic Cotton Denim 25

2-3 years to 4-5 years Mid Wash 2-3 years to 4-5 years Dark Wash 2-3years to 5-6 years Salmon

Overhead Jacket

100% Organic Cotton Denim

2-3years to 5-6 years Forest 2-3years to 5-6 years Ice

A/W 14 Little Boys Alpine Explorer Range Plan 136

STYLE

SKETCH

FABRIC

COLOURS

SIZES

RRP Actual Margin Total Total Total Retail £ Cost achieved quantity Cost £20.00 £7.42 62.90% 260 £1,929.20 £5,200.00

Total Margin 62.90%

2-3years to 5-6 years Blue/Red Henley T-Shirt

100% Organic Cotton

£20.00

£7.42

62.90%

260

£1,929.20

£5,200.00

62.90%

£20.00

£7.42

62.90%

300

£2,226.00

£6,000.00

62.90%

£20.00

£7.42

62.90%

300

£2,226.00

£6,000.00

62.90%

£32.00

£12.00

62.50%

200

£2,400.00

£6,400.00

62.50%

£32.00

£12.00

62.50%

160

£1,920.00

£5,120.00

62.50%

£32.00

£12.00

62.50%

180

£2,160.00

£5,760.00

62.50%

£26.00

£9.81

62.27%

220

£2,158.20

£5,720.00

62.27%

£26.00

£9.81

62.27%

190

£1,863.90

£4,940.00

62.27%

£26.00

£9.81

62.27%

190

£1,863.90

£4,940.00

62.27%

£26.00

£9.81

62.27%

220

£2,158.20

£5,720.00

62.27%

£196.76

62.66%

3,810 £39,960.90

£107,010.00

62.66%

2-3years to 5-6 years Forest/Salmon 2-3years to 5-6 years Mint/Forest 2-3years to 5-6 years Ice/Navy 2-3years to 5-6 years Mint Fisherman Jumper

100% Natural Wool 2-3years to 5-6 years Red 2-3years to 5-6 years Ice 2-3years to 4-5 years Blue Check/Salmon 100% Organic Heavy Cotton

Lumberjack Shirt

2-3years to 4-5 years Red Check/Blue 2-3years to 4-5 years Green Check/Ice 2-3years to 4-5 years Green Check/Mint

TOTAL

137

Appendix 1

STYLE

SKETCH

CAD Range Plan - Girls

FABRIC

COLOURS

SIZES

RRP Actual Margin Total Total Total Retail £ Cost achieved quantity Cost £32.00 £12.05 62.34% 240 £2,892.00 £7,680.00

Total Margin 62.34%

5-6years to 11-12 years Pink/Gold Colour Block Dress

100% Organic Cotton

£32.00

£12.05

62.34%

240

£2,892.00

£7,680.00

62.34%

£32.00

£12.05

62.34%

210

£2,530.50

£6,720.00

62.34%

£34.00

£12.70

62.65%

240

£3,048.00

£8,160.00

62.65%

£34.00

£12.70

62.65%

220

£2,794.00

£7,480.00

62.65%

£34.00

£12.70

62.65%

260

£3,302.00

£8,840.00

62.65%

£26.00

£9.88

62.00%

280

£2,766.40

£7,280.00

62.00%

£26.00

£9.88

62.00%

260

£2,568.80

£6,760.00

62.00%

£26.00

£9.88

62.00%

260

£2,568.80

£6,760.00

62.00%

5-6years to 11-12 years Navy/Gold 5-6years to 11-12 years Grey/Gold 5-6years to 11-12 years Grey Zip-through Chunky Knit

100% Organic Cotton 5-6years to 11-12 years Mint 5-6years to 11-12 years Navy 5-6years to 11-12 years Mint

Sheer Mix Blouse

100% Organic Cotton 5-6years to 11-12 years Pink 5-6years to 11-12 years Chalk

A/W 14 Girls Winter Sorbet Range Plan 138

STYLE

SKETCH

FABRIC

COLOURS

SIZES

RRP Actual Margin Total Total Total Retail £ Cost achieved quantity Cost £40.00 £14.95 62.63% 200 £2,990.00 £8,000.00

Total Margin 62.63%

5-6years to 11-12 years Navy Pretty Parka

100% Organic Cotton

£40.00

£14.95

62.63%

160

£2,392.00

£6,400.00

62.63%

£40.00

£14.95

62.63%

180

£2,691.00

£7,200.00

62.63%

£25.00

£9.22

63.12%

220

£2,028.40

£5,500.00

63.12%

£25.00

£9.22

63.12%

180

£1,659.60

£4,500.00

63.12%

£25.00

£9.22

63.12%

200

£1,844.00

£5,000.00

63.12%

£28.00

£10.51

62.46%

300

£3,153.00

£8,400.00

62.46%

£28.00

£10.51

62.46%

340

£3,573.40

£9,520.00

62.46%

£28.00

£10.51

62.46%

300

£3,153.00

£8,400.00

62.46%

£207.93

62.51%

4,290 £48,846.90

£130,280.00

62.51%

5-6years to 11-12 years Mint 5-6years to 11-12 years Pink 5-6years to 11-12 years Pink/Chalk Pleated Layer Skirt

100% Organic Cotton 5-6years to 11-12 years Grey/Mint 5-6years to 11-12 years Chalk/Mint 5-6years to 11-12 years Blue wash

Turn-up Skinny Jean

100% Organic Cotton Denim

5-6years to 11-12 years Navy wash 5-6years to 11-12 years Grey wash

139

Appendix 1

STYLE

SKETCH

Shearling Jacket

CAD Range Plan - Boys

FABRIC

COLOURS

Body 100% Organic Cotton

Navy/White

SIZES

RRP Actual Margin Total Total Total Retail £ Cost achieved quantity Cost £48.00 £18.00 62.50% 180 £3,240.00 £8,640.00

Total Margin 62.50%

5-6years to 11-12 years

Collar and Detailing Organic Cotton Sherpa Forest/White

£48.00

£18.00

62.50%

160

£2,880.00

£7,680.00

62.50%

£48.00

£18.00

62.50%

140

£2,520.00

£6,720.00

62.50%

£30.00

£11.20

62.67%

330

£3,696.00

£9,900.00

62.67%

£30.00

£11.20

62.67%

300

£3,360.00

£9,000.00

62.67%

£30.00

£11.20

62.67%

340

£3,808.00

£10,200.00

62.67%

£40.00

£15.11

62.23%

160

£2,417.60

£6,400.00

62.23%

£40.00

£15.11

62.23%

190

£2,870.90

£7,600.00

62.23%

£40.00

£15.11

62.23%

220

£3,324.20

£8,800.00

62.23%

5-6years to 11-12 years

5-6years to 11-12 years Blue/White 5-6years to 11-12 years Light Wash Worker Jean

100% Organic Cotton Denim 25

5-6years to 11-12 years Mid Wash 5-6years to 11-12 years Dark Wash 5-6years to 11-12 years Salmon

Overhead Jacket

100% Organic Cotton Denim

5-6years to 11-12 years Mint 5-6years to 11-12 years Ice

A/W 14 Boys Alpine Explorer Range Plan 140

STYLE

SKETCH

FABRIC

COLOURS

SIZES

RRP Actual Margin Total Total Total Retail £ Cost achieved quantity Cost £24.00 £8.79 63.38% 300 £2,637.00 £7,200.00

Total Margin 63.38%

5-6years to 11-12 years Forest/Salmon Henley T-Shirt

100% Organic Cotton

£24.00

£8.79

63.38%

300

£2,637.00

£7,200.00

63.38%

£24.00

£8.79

63.38%

340

£2,988.60

£8,160.00

63.38%

£24.00

£8.79

63.38%

340

£2,988.60

£8,160.00

63.38%

£34.00

£12.88

62.12%

260

£3,348.80

£8,840.00

62.12%

£34.00

£12.88

62.12%

230

£2,962.40

£7,820.00

62.12%

£34.00

£12.88

62.12%

230

£2,962.40

£7,820.00

62.12%

£30.00

£11.00

63.33%

280

£3,080.00

£8,400.00

63.33%

£30.00

£11.00

63.33%

250

£2,750.00

£7,500.00

63.33%

£30.00

£11.00

63.33%

250

£2,750.00

£7,500.00

63.33%

£30.00

£11.00

63.33%

280

£3,080.00

£8,400.00

63.33%

£239.73

62.73%

4,800 £57,221.50

£153,540.00

62.73%

5-6years to 11-12 years Salmon/Blue 5-6years to 11-12 years Mint/Forest 5-6years to 11-12 years Ice/Navy 5-6years to 11-12 years Blue Shawl Neck Jumper

100% Organic Cotton 5-6years to 11-12 years Red 5-6years to 11-12 years Ice 5-6years to 11-12 years Blue Check/Ice 100% Organic Heavy Cotton

Lumberjack Shirt

5-6years to 11-12 years Red Check/Blue 5-6years to 11-12 years Green Check/Salmon 5-6years to 11-12 years Green Check/Mint

TOTAL

141

Appendix 1

CAD Range Plan

• In order to estimate quantities for my range plan I used my own experience of working in a High Street store, and my buying internship to estimate how many of each item would be sold per week, as well as primary research of H&M stores to see which items were more popular. • Based on this average rate of sale, I multiplied it by the number of weeks that item was planned to be in store (based on my trend calendar) and came up with an estimated store quantity needed. • I am basing my quantities on 50% of sales coming from in-store and 50% of sales from from internet purchases, as this is where a lot of childrens ethical clothing is bought. • I have also adjusted these quantities to be higher or lower depending on which colours are predicted to be better sellers.

142

Appendix 2

Sizing Distribution by Age Range

â&#x20AC;˘ I have estimated my sizing distribution by combining research of different areas population from UK National Statistics, primary and secondary customer profile research, target audience, and Mintel research on how different age groups shop.

143

Appendix 2

Sizing Distribution by Age Range

23%

22% 17%

16%

12%

s th

on m 18

-24

m -18 12

6-1

s th on m 3-6

th on m 0-3

10%

Mini Range - Newborn to 24 months 144

Little Range - 2-6 years

145

-24

-18

on t

6-1

3-6

0-3

Ne w

22% 23%

17% 16%

10% 12%

Appendix 2

Sizing Distribution by Age Range

23%

22% 17%

16%

12%

Kids Range - 5-12 years 146

s th

on m 18

-24

m -18 12

6-1

s th on m 3-6

th on m 0-3

10%

MINI RANGE -‐ general

TOTAL NO OF UNITS

NO OF UNITS PER SIZE

0-‐3 months 3-‐6 months 6-‐12 months 12-‐18 months 18 -‐ 24months NEWBORN 10% 12% 17% 22% 23% 16% 8 9 13 17 17 12

MINI RANGE -‐ bodysuits

TOTAL NO OF UNITS

NO OF UNITS PER SIZE

TOTAL NO OF UNITS 2-3 years

3-‐4 years

28% 18

NO OF UNITS PER SIZE

KIDS RANGE

TOTAL NO OF UNITS 5-6 years

YOU & ME

TOTAL NO OF UNITS MINI

65 20% 13

30%

4-‐5 years

6-‐7 years

10% 7

NO OF UNITS PER SIZE

100% 75

0-‐3 months 3-‐6 months 6-‐12 months 12-‐18 months 18 -‐ 24months NEWBORN 12% 14% 20% 23% 21% 10% 9 11 15 17 16 8

LITTLE RANGE

NO OF UNITS PER SIZE

16%

35% 23

5-‐6 years

7-‐8 years

LITTLE

24%

18%

100% 65

8-‐9 years

KIDS

18%

18% 12

45%

100% 75

9-‐10 years

16% 10

10-‐11 years

11-‐ 12 years 12% 10% 8 7

100% 65

147

Appendix 3

Price Band Matrix

â&#x20AC;˘ I have created my pricing strategy to be in line with other ethical childrenswear competitors, and to sit in the same price ranges.

148

Coats and Jackets Tops and Blouses

Knitwear Dresses Trousers and Skirts Bodysuits and Babygrows

Accessories

Price

Mini Girls Price Band Matrix 149

Appendix 3

Price Band Matrix

Coats and Jackets Tops and T-shirts

Knitwear Shirts Jeans and Trousers Bodysuits and Babygrows

Accessories

Price

Mini Price Band Matrix 150

Coats and Jackets Tops and Blouses

Knitwear Dresses Trousers and Jeans Skirts and Leggings

Accessories

Price

Little Girls Price Band Matrix 151

Appendix 3

Price Band Matrix

Coats and Jackets Tops and T-shirts

Knitwear Shirts Jeans Trousers and Sweatpants

Accessories

Price

Little Boys Price Band Matrix 152

Coats and Jackets Tops and Blouses

Knitwear Dresses Trousers and Jeans Skirts and Leggings

Accessories

Price

Girls Price Band Matrix 153

Appendix 3

Price Band Matrix

Coats and Jackets Tops and T-shirts

Knitwear Shirts Jeans Trousers and Sweatpants

Accessories

Price

Boys Price Band Matrix

154

Appendix 4

Trend Timetable July

Core Collection

DROP

Alpine Explorer/Winter Sorbet Top Knotch/Peacock Party Winter Spring Trend Spring Trend

August

September

October

REPLEN DROP1

November

REPLEN

December

January

DROP

February

REPLEN

March

April

REPLEN

May

DROP

June

July

REPLEN

August

REPLEN

DROP

DROP2 DROP1

Spring Summer Trend

DROP2 DROP1

DROP2

High Summer Trend

DROP1

Late Summer

DROP2 DROP1

Autumn

DROP2 DROP1

DROP2

This trend timetable shows a plan of how many trends the brand will have per season, and from this when each of the drops will occour. It also shows the continual running of the core collection, and when replen deliveries would take place. This was also used to help with the business plan to plan when the brand would be spending money on stock.

155

September

Appendix 5

Cash Flow Document

Example of Cash Flow for Business Planning July

August

September

October

November

December

January

February

March

April

May

June

Total

RECEIPTS. Sales

£0

£676,000

£988,000

£780,000

£988,000

£832,000

£870,000

£889,000

£988,000

£820,000

£920,000

Capital Investment

£10,000,000

£4,000,000

£1,000,000

£0

(A) Total Income

£10,000,000

£4,000,000

£1,676,000

£988,000

£780,000

£988,000

£832,000

£870,000

£889,000

£988,000

£820,000

£920,000

£10,000

£12,000

£1,000

£900

£800

£1,000

£800

£1,000

£800

Stationary

£100

£300

£200

£250

Phone / Internet

£100

£200

£10,000

£5,000

£500

£1,000

£500

£8,751,000 £15,000,000 £23,751,000

LESS PAYMENTS Overheads (rent, power, etc) Printing

Equipment (Computers etc) salaries

£250,000

£300,000

£330,000

£300,000

£330,000

Design Costs

£3,000

£2,000

£1,500

£2,000

£1,500

£2,000

£1,500

£2,000

£1,500

£2,000

£1,500

Photography

£2,000

£7,000

£1,000

£2,000

£1,000

£7,000

£2,000

£1,000

£7,000

£350

£400

£125,000

£342,000

£260,000

£380,000

£300,000

£380,000

£342,000

£270,000

£300,000

£380,000

Samples Manufacturing Costs (Stock) Travel

£1,603

£2,000

£1,400

£1,000

£1,400

£2,200

£3,300

£1,000

£150,000

£20,000

£60,000

£20,000

£60,000

£20,000

£60,000

£10,000

£60,000

£10,000

Promotion

£80,000

£40,000

£60,000

£40,000

Digital Materials

£34,000

PR Consultants

£25,000

£17,000

Press Samples

£4,000

£800

£4,000

£800

Press Packs

£5,000

£2,500

£0

£3,000

£0

£8,000

£2,000

£1,000

£2,000

£1,000

Ad Campaign

Visual Merchandising Digital Campaign

£140,000 £10,700 £2,850 £2,300 £21,000 £3,510,000 £23,500 £34,000 £4,400 £3,759,000 £17,903 £680,000 £580,000 £408,000 £220,000 £22,400 £21,000 £22,000 £31,000 £250,000 £1,400,000 £450,000

£3,000

£4,000

£3,000

£2,000

£3,000

£4,000

£3,000

£2,000

£1,000

Flagship Design

£250,000

£0

Flagship Refit

£800,000

£600,000

£0

In Store Technology Set Up

£350,000

£100,000

£0

(B) Total cash payments.

£2,104,153

£1,629,850

£652,050

£857,900

£753,600

£803,300

£821,100

£865,100

£821,150

£692,450

£771,950

£837,450

£7,895,847

£2,370,150

£1,023,950

£130,100

£26,400

£184,700

£10,900

£4,900

£67,850

£295,550

£48,050

£82,550

£5,000

£7,900,847

£10,270,997

£11,294,947

£11,425,047

£11,451,447

£11,636,147

£11,647,047

£11,651,947

£11,719,797

£12,015,347

£12,063,397

£12,140,947 £12,145,947

£7,900,847

£10,270,997

£11,294,947

£11,425,047

£11,451,447

£11,636,147

£11,647,047

£11,651,947

£11,719,797

£12,015,347

£12,063,397

£12,145,947

£24,286,894

(D) Opening bank balance. Closing bank balance. (D+C)

156

£11,610,053

This document has been created to show the cash flow of You&Me. The capital investment will be from the H&M company. Costs have been estimated based on research. The sales figures have been estimated based on a an initial sales through rate of 75%, increasing to 80% towards the end of the year. The fluctations in sales rates have also accounted for Chrismtas being a busy shopping period with many people buying gifts for children, and also to account for the launch of Spring Summer 2015 collections driving sales after the launch. With a start up brand, the marketing costs have been set high, to promote the brand as much as possible in its early stages. Cost of merchandise has been estimated by adding up the costs from each of the range plans, and adding extra to account for the core collection as well as our trend collections. You&Me will constantly have stock replenishment, as shown in the trend timetable in Appendix 4, this is why production continues to be at a high cost, peaking when new trend collections are due to launch. Overall from the cashflow document, it shows that in its first year, You&Mee made no profit, this is due to the high set pu costs of a new brand, however going forward if the brand continues to gain momentum and reach high sales figures, the brand will be in profit by year two,

157