Topshop Buying Plan

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COMPANY HISTORY BRAND IDENTITY CORPORATE SOCIAL RESPONSIBILITY COMPANY MISSION & VALUES COMPANY SIZE & SALES OVERVIEW PRODUCT SCOPE MEDIA PRESENCE SCOPE OF SERVICES PRICING STRATEGY CUSTOMER BASE DENIM JEANS MARKET CATEGORY DATA COMPETITIVE LANDSCAPE FAST FASHION COMPETITORS LIFESTYLE TRENDS AND GLOBAL INFLUENCES TOPSHOP DENIM STYLES SWOT ANALYSIS CURRENT TRENDS AND BUYING INFLUENCES SIX MONTH BUYING PLAN TOTAL ASSORTMENT PLAN JAMIE DENIM ASSORTMENT PLAN 5TH AVE NEW YORK ASSORTMENT PLAN LENOX SQUARE ATLANTA ASSORTMENT PLAN GOALS & TACTICS


Topshop started out as a brand extension in 1964 of Peter Robinson, a women’s department store in Sheffield. Topshop originally sold young fashion designers and its ability to reach the “young and different generation” is why Topshop is as large as it is today. For over 53 years, TopShop has been able to deliver clothing for the youth who desire fashion forward clothing at a reasonable price.

Careers.topshop.com


First standalone Topshop opened in 1974 in the UK First Topshop store outside of the UK opened in 2009 With only 10 stores in the US, Topshop is slowly testing their US market by renting spaces in Nordstrom locations. Today, Topshop is a part of the Arcadia Group, a private equity multinational retailing company.

arcadiagroup.co.uk


Topshop is for the cool girl on the go looking for trendy clothes at a premium price. She appreciates updated classic, innovative, & contemporary styles. She prefers exclusive fashion and to be the ďŹ rst to wear the latest and trendiest styles.


CODE OF CONDUCT

The Arcadia Group Code of Conduct applies to the manufacturer, or any other person involved in supplying goods to its companies. The code is based on the International Labor Organization (ILO) recommendations, and applies to all brands owned by the Arcadia Group

FASHION FOOTPRINT

Arcadia Group’s program plans, monitors, and manages the social and environmental impact of the business. The program ensures ethical practices with production and supply standards, and protects its employees.

arcadiagroup.co.uk


To produce fashionable products in an ethical way and demonstrate a responsible attitude towards people and the environment

arcadiagroup.co.uk


When customers buy goods, we want them to be conďŹ dent that they have been produced under acceptable conditions. That means the goods must have been produced: lawfully, through fair and honest dealing; without exploiting the people who made them in decent working conditions; and without damaging the environment.

arcadiagroup.co.uk


620 stores worldwide across 58 countries 10 Stores in the US Topshop.com has 400 new product launches each week

Annual sales/quarterly sales volume Annual proďŹ ts plummeted $285 million while sales dropped 2.5% to just over $2.7 billion Total sales 2.8B (ďŹ scal year 2016) Total assets (4.7B)

retailgazette


NEW IN CLOTHING JEANS SHOES BAGS & ACCESSORIES BEAUTY SALE STYLE Various brands carried by Topshop include Ivy Park, Adidas, Calvin Klein, FILA, Reebok, Motel, Tommy HilďŹ ger, Skinnydip, Quay Sunglasses, Olivia Burton Watches, Converse from OFFICE


HATS BELTS

JACKETS

DRESSES

BAGS TOPS

SKIRTS

JEANS

MAKEUP

PANTS

BLOUSES

SHOES

INTIMATES


Instagram Twitter Facebook Pinterest Topshop App Email

#TOPSHOPSTYLE Topshop.com posts street style photos with consumers wearing product and allows viewers to shop product seen in photos


Topshop.com has an average of over 4.5 million weekly visits 400 new product launches each week & ships to 110 countries


PERSONAL SHOPPING Topshop offers a premium, complimentary service called Personal Shopping. You can book an appointment at selected Topshop stores for one-on-one style advice and access to the latest arrivals in the comfort of your own private dressing suite.

MY TOPSHOP WARDROBE Topshop offers a style quiz that asks its consumers about their demographic data and personal shopping preferences. Topshop then generates a select number of product options based on the consumer’s quiz choices


ENTRY LEVEL PRICE RANGE

EXIT PRICING

Clothing $4 - $80

Clothing $80 - $250

Shoes $4 - $70

Shoes $80 - $240

Accessories $2 - $80

Accessories $80 - $210

This pricing strategy is based on the primary and secondary customer and due to Topshop being apart the Economy Market. Prefer to be seen as high fashion although they’re fast fashion brand


Topshop appeals to those wanting fashionable items at reasonable prices PRIMARY CUSTOMER - appreciates a combination of trend and luxury driven items with creativity and innovative designs at the core, as well as servicing a contemporary customer with Boutique items SECONDARY CUSTOMER - anyone who appreciates fashion & the brand’s products regardless of age or income

The Topshop girl is: Fashion Forward Style Conscious Student Impulsive Independent Millennial Driven Professional Enthusiastic Media Driven Young Unique

elliedigitalpublishing.com


PRODUCT CATEGORY:


Size of Global denim market by sales $56,200,000,000 Size of U.S. denim market by sales $13,720,000,000 US Women’s denim market size $8,550,000,000

Jeans showed growth in 2016, after strong declines for two years Women’s jeans represented 55% of overall value sales of jeans in 2016 statisticbrain.com Marieclaire.com


ECONOMY - $9.99 - $50.00 (H&M, Old Navy, Forever 21, Target, Walmart) STANDARD - $50.00 - $100.00 (Levi’s, Wrangler, Lee) PREMIUM - $100.00 - $230.00 (7 for all Mankind, Mother Denim, Hudson) SUPER PREMIUM - $200.00+ (True Religion, Joe’s Jean’s, AG Jeans)

Economy jeans held the largest value share of jeans categories with 39% in 2016

Euromonitor.com



Topshop’s focus in their denim category is Economy jeans. Fast-fashion brands such as H&M, Forever 21 and Zara recorded growth in 2016 jeans category Consumers expect good quality & high fashion aesthetic jeans at a much cheaper price point

H&M Denim Market Share: 1.1% Zara Denim Market Share: 0.2% Euromonitor.com


511 US Retail Stores 131 jean products in 7 different ďŹ ts online Global net sales: $22.67 billion Owned by Swedish company, H&M (Hennez and Mauritz) Product categories include home, shoes, accessories, & beauty for men, women, teenagers, and children Target market includes price-conscious consumers Jeans priced from $9.99 - $69.99

Hm.com


COMPETITIVE ADVANTAGE Has a home section; Topshop does not Has a stronger financial presence than Topshop

WEAKNESSES Is known for destroying clothes that are refunded or not sold Often caught appropriating other artist’s work without giving credit to artist Isn’t efficient in sustainable and ethical practices

Academia.edu


70 US Retail stores 317 denim jean products in 8 different ďŹ ts online US Net Sales 2016: $18,110 million Owned by Spanish company, Inditex Product categories include home, apparel, shoes, & accessories for women, men, & children Target consumer include millennial & mature shoppers that are frugal, value-minded, & demanding quick on-trend fashion Jeans priced from $29.90 - $69.90

Inditex ďŹ nancial Reports


COMPETITIVE ADVANTAGE Fast supply chain Good store image & Visual storytelling of product Specialized customer service teams RFID Technology Leader of rapid development of high quality fast fashion Zara can quickly picking up on new fashion trends & accurately forecast stock requirements which reduces markdowns and results in a quick turn of stock which keeps customers coming back for new product WEAKNESSES Limited marketing & advertising Limited stock Brand image similar to competitors

Scmglobe.com Forbes.com Businessinsider.com


0 US Stores - Online Only 976 styles in 10 ďŹ ts of denim jeans Annual Sales 2016: Retail sales growth of 26% to ÂŁ1.4b Product categories include clothing, shoes, accessories, face, & body care for men & women Target consumer is twenty-something fashion lovers, media driven shoppers wanting fashion now Jeans priced from $22.00 - $356.00

asosplc.com


COMPETITIVE ADVANTAGE ASOS offers custom lines so that jeans fit perfectly for consumers sizing Ex. ASOS Curve, ASOS Maternity, ASOS Tall, ASOS Petite Provides custom jean lengths for all body types (26”-36” inseams) Runway feature for viewing products Same-day shipping WEAKNESSES Free shipping costs ASOS $100,000 million each year About 30% of clothes are returned, resulting in more shipping costs No brick-and-mortar locations

styledbymarieclaire mbaskool.com


10 US Retail Stores 362 jeans in 10 ďŹ ts Jamie high waisted skinny jean is their most popular style Topshop sells a pair of denim jeans every 10 seconds globally Consumer is young shoppers wanting high end fashion at a Jeans priced from: $39.00 - $95.00

Topshop.com ReďŹ nery29.com


COMPETITIVE ADVANTAGE Celebrity endorsements & collaborations (Kendall & Kylie, IVY PARK, House of CB, Adidas) Free personal shoppers in speciďŹ c US store locations WEAKNESSES More locations in Nordstrom, not directly reaching their main customer Investing into UK locations, must bring unique experiences to US locations to grow here

BOF.com


E-commerce space is larger as foot traffic into stores decrease. As a result, customers value size guides & better presentation of product. Social networks serve as both promotional and shopping platforms Customers prefer experience rather than product Consumers want to be more informed on where their clothing comes from (H&M Conscious Collection, ZARA #Joinlife Initiative, Topshop’s “Reclaim to Wear”) Consumers want effortless & casual fashion

WGSN.com lexisNexis - InAcademic


United Kingdom citizens voted to leave the European Union in June 2016. Although it’s too soon to tell how this will effect UK brands, some potential outcomes include venture capitalists, (who don’t like uncertainty) won’t want to invest. In addition, tighter immigration rules may hinder growth, and being a “British Brand” may not remain a positive product attribute Production costs have escalated due to a huge rise in raw materials (cotton, indigo) which increased by 20-25% in 6 months

WGSN.com LexisNexis - InAcademic



DENIM JEANS FALL/WINTER BUYING PLAN



Topshop.com



Topshop.com


Denim is a timeless and versatile style The economy jeans market showed growth in 2016 Topshop offers affordable jeans with an array of ďŹ ts Denim is a durable fabric Functional tailoring

ADVANTAGES


Oversaturation of the jeans market Jeans often result in complicated sizing for women There are more comfortable alternatives to denim jeans Lacking number of US locations

DISADVANTAGES


Incorporate athleisure elements into denim Include more sustainable practices in denim production Expand omni-channel marketing in the US Branch into plus size denim market Rewards and loyalty programs

OPPORTUNITIES


The athleisure market is expanding Global economies becoming more unstable Potential raw material ination costs

RISKS


CURRENT TRENDS &


BUYING INFLUENCES


The demand for stretch denim increased due to the rise of athleisure and the adoption of sportswear on a day to day basis Customers no longer want to sacriďŹ ce comfort for aesthetic and denim brands are adapting to this by combining jeans and active wear resulting in stretch denim

38.9 % of assortment will include stretch denim

Onesource.com Euromonitor.com


Trend born from the need to personalize & customize clothing, raw hemlines bring a more street style vibe to traditional jeans Consumers like the “effortlessly cool� aesthetic which incorporates modern day versions of traditional hemlines, from distressed fringe to raw ends 20% of each style will be produced in style

ReďŹ nery 29.com Topshop.com


Flare leg and wide leg jeans act as an easy way to elevate your denim silhouette for more dressy occasions. The baggy aesthetic keeps you covered while remaining comfortable

15.3 % of total style assortment will have wide leg denim

Vogue.com


Topshop poorly invests in plus size denim and since 67% of the women in the US are size 14 or higher, a point should be made to include these sizes especially in Topshop US locations. Plus size Denim will comprise of 15% of the total sizes offered

Economist.com asos.com





TALL

PETITE

PLUS

MATERNITY Our assortment plan will aim to carry more styles in these speciďŹ c categories to further cater to those consumers. We will increase size offerings from 0 - 12 to 0 - 24 asos.com Topshop.com


#1 TOPSHOP DENIM STYLE : JAMIE

Topshop.com


$


5TH AVENUE, NEW YORK: 608 Fifth Avenue, New York, NY 10020 40,000 square feet Second largest Topshop location

Topshop.com


DENIM FIT

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$ AMOUNT PER STYLE

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Lenox Square, ATLANTA GA. 3399 Peachtree Rd, Atlanta, GA 30326 7,800 square feet Mall Location


DENIM FIT

% OF TOTAL $ AMOUNT

$ AMOUNT PER STYLE

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Make Topshop the go-to brand for women’s economy denim Give edge over other fast fashion brands Strengthen Topshop brand identity

GOALS


Minimal merchandising in-store layout Expansion into sizes and ďŹ ts to encompass broader audience Evolve styles based on trends and offer multiple options

TACTICS


COURTNEE ROSS - RAQUEL


BENJAMIN - WHITNEY SYLVAIN


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