Abercrombie & Fitch 6-months Buying Plan

Six-months buying plan FALL/WINTER 2016 Knitted Sweaters

By Yoyo Chow

FASM 245 - WI16

Prof. Cory Quach

Content

Company Research and Profile Customer Research and Profile Competitor Research and Profile

Trend Report

The 6-Month Plan

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Company Research and Profile

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Vision and Mission

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A&F emphasize on their brand vision, brand attributes, and values. They aim at sophistication with an element of simplicity.

Merchandise is focused upon high-quality that compliments the casual classic American lifestyle.

Abercrombie & Fitch is an apparel store which offers a wide variety of

products, including dresses, hoodies, tanks, shirts, fashion tops, sweaters, polos, jeans, shorts, sweatpants, skirts, leggings, outwear, swim, sports wear, sleep and intimates, accessories, shoes and fragrance.

Target audience is men and women from age 16 to 26 years old. Mainly university or college students, high income young adults and tourists.

Among competitors in market, A&F is positioned in the middle. Determined by pricing, quality, and reputation.

My project will focus on the sweater's department and develop a buying plan and an assortment plan for fall winter season in year 2016 to 2017.

History A&F was founded by David T. Abercrombie and Ezra Fitch in 1892. Michael Jeffries, the former chairman and CEO, was one of the other key figures who influenced the course of A&F's history. He rebuilt A&F as an upscale apparel retailer for college students, only market to cool and good-looking people. In the past, A&F only offered small-sized clothing, and with a narrow look. However, in recent years, with the step down of Jeffries, A&F is reviving from the trough, and is exposing themselves to more opportunities and market. (Schlossberg, 2016)

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Visual Merchandising The only Abercrombie & Fitch store in Hong Kong has a dark and moody atmosphere caused by dim lighting, loud music, and the significant scent. Fragrance was sprayed by machine on a set schedule to keep the scent captured in store at all times. Life size images, statues and paintings were used to decorate the interior. Palm trees and chandeliers were also placed as a unique style to catch the customers' attention. The whole store was divided into men's and women's department.

The store aimed to stimulate customer's five senses through their settings.

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Sales and Promotion Sales section was set up at the bottom level during Chinese New Year clearing sale. Most fall winter items were discounted from 50% to 23% off the original price.

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Customer Research and Profile

Customer Profile

In order to obtain information about customer profile, a survey was conducted at the A&F store, and at the three competitors' stores. Questions were asked to random customers who made a purchase at the respective stores, especially for customers who bought sweaters.

Questions were built according to practices that may determine the demographic, psychographic, and buying behavior of customers in store.

For demographic data, interviewees were asked about their age and occupation;

For psychographic data, interviewees were asked their purpose of shopping and if they have heard of the brand before, in order to determine the importance of brand recognition;

For buying behavior, interviewees were asked what did they buy, and how much they spent for this purchase.

Geographic data was analysed according to observation and research on available information about the location.

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The survey was conducted on 6th February, 2016, at 6pm to 7:30pm, at the Central A&F store. For this survey conducted, a total of 17 customers were asked, and 10 responses were successfully collected.

Unemployed

10%

60% 30%

Student

Employed with fixed income

Demographic

Most customers are between 22-30 years old. All of them are women for the department. 35% did not have income, and 65% of them were working class with fixed income. 50% of customers were tourists, and 50% were local consumers.

Out of Boredom New Year’s Discount

5%

45%

40% 5%

Psychographic

5% Others

Travel Shop Needs

The most popular reasons for people who shopped at A&F store in Hong Kong is because of the Chinese New Year clearing sale and as a tourist stop during travel. 90% of the interviewee have heard of the A&F before they shop there, while 10% have not heard of it. This implied that brand recognition is important for consumers in A&F.

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Geographic Having only one store in Hong Kong, A&F is located at the Central district. The store is a four-storey building which segmented different departments by floor. Neighborhood is the Landmark, which high-luxury brands are concentrated at. The main audience for the area is tourists, professionals, and residents with high income.

Denim

Others Sweaters

3%

Accessories 8%

3%

28%

25%

22% 3%

Buying Behavior

Outerwear

8%

Footwear

Tops

Pants

Obtained from the sample group in the survey conducted, most customers bought sweaters, nonknitted tops, and outerwear during the time. Average spending of each customer was approxiamtely at HKD$1000 to HKD$2000. Average time that customers spend in store was 20-30 minutes, with 3-5 clothing at a purchase during sales season.

According to sales manager, people tend to come into store during sales seasons, and sales clothing move out a lot quicker than expected.

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Further Analysis

The customer profile information was collected mainly through the survey conducted, communication with sales associates and sales managers working at the store, and secondary researches.

In terms of demograhpic, customers are mostly 22-30 years old students or working class. By assumption, most working class are still at the beginning of their career during this age range, meaning they don't earn a high income. Hence, most of the A&F customers do not have the ability to purchase clothing at a high pricing.

Psychographically, customers were mostly attracted to shop at store because of the discount and sales. Number of customers in store was much higher duirng sales season than that of normal seasons acoording to observation. The second factor is because of the brand's recognition. People recognized the brand as a brand for cool kids due to the marketing strategies previously introduced by former CEO Michael Jefferies. (S.B., 2015) These have proven that customers are interested in the brand's products, but most of them were not willing to afford it at a high price.

Geographically, the store's location has successfully attracted a number of tourists to visit. However, as there are more mature high-end brands located nearby, not much of professionals were attracted.

Regarding customers' buying behaviour, sweater was a major category during fall and winter season. It was popular among customers. People are willing to spend some time shopping in store. This means that through improving the placements of products, customers will be making more purchases.

Through infomation obtained from this section, an assortment plan will be developed in later section.

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Customer Profile

Age: 21 Occupation: Hong Kong University student Living area: Kwun Tong

Amy is a college student who loves going outdoors and listen to American pop music.

Everyday, she travels from Kwun Tong to the Southern district for school by bus. She is a fulltime student, but works part-time at Starbucks during weekends. Her family is of middleincome, and they also support her daily spendings. She is aware of the fashion trend, and follows closely to how celebrities and her peers wear. Besides, she is also mindful about quality of garments.

During spare time, she would shop at the A&F store which is near to her school. The main reasons that she like to buy clothes from A&F are that she adores the American casual wear style that the brand has, and she was also influenced by her schoolmates, as most of them like to wear hoodies from the brand. She also thought that A&F has a high reputation, and their clothing is of high quality.

Therefore, she shops at the A&F store often.

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Competitor Research and Profile

Jack Wills Jack Wills is a British clothing brand, which was inspired by traditional British wear.

Their slogan is "Fabulously British".

The brand operates in seven different areas, including UK, US, Hong Kong, and Macau.

It is a private individual company. The signature logo is a pheasant with a top hat and walking stick. The brand is also titled as "University Outfitters", which means they target University students.

The brand also hold events such as Jack Wills Varsity Polo and JW Unsigned.

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Sales and Promotion There was no sales section for Jack Wills during Chinese New Year. However, they offered the "out with the old, in with the new" project. In which, customers could bring in clothing from their old purchase, and get a certain amount of money deducted for their new purachase. There was a $188 off the first clothing they bring in, $288 off the second, and $488 off the third.

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Visual Merchandising The store interior was decorated with the significant pink and blue strips wallpaper. There were photos as wall decorations, and chandelier with a classical staircase. Motor vehicles such as camping car and bicycle were placed all over the store to respond to the theme of Jack Wills as "university outfitters". Fitting room was specially decorated as a "bedroom" to give customers a cozy and homely feel.

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Customer Profile The survey was conducted on 31st January, 2016 at 12pm to 3pm and on 1st February, 2016 at 6pm to 8pm,

at the Causeway Bay Leighton Centre Jack Wills store. For this survey conducted, a total of 8 customers were asked, and 5 responses were successfully collected.

Unemployed 20%

20%

60% 30%

Student

Employed with fixed income

Demographic

Main customer is 16-30 years old women. 40% of the customers has no income, and 60% of them has a fixed amount of income. 40% of customers are tourists, and 60% are local consumers.

New Year’s Discount Travel 20%

60%

10%

20% 20%

Psychographic

Out of Boredom

Main purpose of shopping for people at store is an activity during travel. Brand recognition is relatively important to customers because all of the interviewees at store have heard of the brand before they shop. They chose to enter the store because of the brand’s high-end luxury style.

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Geographic There are 4 stores located in Shatin, Festival Walk, Tsim Sha Tsui, and Causeway bay respectively. Store locations are mostly at concentrated busy areas with tourists and locals.

Neighborhood is mainly middle high to high-end retail stores.

Outerwear 13%

25%

Denim

37% 25%

Buying behavior

Tops

Sweaters

Most people just walk around the store without buying anything after observation. Average time that each customer spend in store is 15 minutes. Average spending is at HKD$1000-HKD$2000.

Mostly bought items include denim, non-knitted tops and sweaters.

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American Eagle Outfitters American Eagle is a public company which was incorporated on 26th January, 1972.

There are more than 1000 retail stores operating globally, located in US, Canada, Hong Kong, Mexico, and UK. It is a specialty retailer, designer, and marketer of clothes and related accessories.

Denim is an important part of the business. The style of clothing is casual wear.

Aerie brand is a co-brand, which focus on women's intimates and personal care products.

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Sales and Promotion Sales section was set up in store for discounted items. Besides, an overall purchase of HKD$1000 or above could receive a HKD$300 off the whole amount. There were discount on particular new arrival items, such as sweaters, graphic t-shirts and denim. As a Chinese New Year activity, lucky draw cards were given to any customers who entered the store, for an extra discount on denim.

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Visual Merchandising Each piece of clothing was placed according to categories. Denim was a key item, and had its own corner. Sweaters were placed all over the shop. Matching styles would be placed next to each other, to help customers with mix-and-match the items. Similar colored items would also be placed at the same spot.

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Customer Profile The survey was conducted on 29th January, 2016 at 8pm to 9pm and 31st January, 2016 at 6pm to 7pm, at the Tsim Sha Tsui Mira Mall American Eagle store. For this survey conducted, a total of 23 customers were asked, and 10 responses were successfully collected.

Unemployed 10%

40%

50% 30%

Student

Employed with fixed income

Demographic

Main customer is 15 to 25 years old women. 50% with no income, and 50% with a fixed amount of income. 70% are tourists, and 30% are local customers.

Needs New Year’s Discount

10%

30%

10%

30% 20%

Others

Travel

Psychographic

Out of Boredom

Main purpose of shopping for people at store is because of travel and the New Year’s discount.

Brand recognition is not so important to them, as 70% of customers have heard of the brand, and 30 % have not.

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Geographic There are 6 stores in total in Hong Kong. Mostly located in concentrated busy area with tourists and locals. Neighborhood is mainly middle high retail stores.

Outerwear

Accessories

Pants

5%

5%

9%

Shorts

36%

9%

Denim

18% 18%

Buying Behavior

Sweaters

Tops

People are concentrate to buy sales item and denim. According to observation, out of 10 customers at store, 8 of them tried on clothes, 4 of them bought the items at last. Average spending is HKD$500-HKD$1000. They mostly bought denim, sweater, and non-knitted tops.

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Denim and Supply Denim and Supply is a co-brand of Ralph Lauren. The brand is themed based on three stories: Into the Wild, The Lodge, and The Warf. It channels a vintage, comfortable, and down-to-earth feeling that encompasses the downtown New York vibe. (Lamb, 2011)

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Sales and Promotion A small sales section was set up in store with all items priced at 50% off. Some particular types of knitted sweaters were marked from HKD$1090 to HKD$545.

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Visual Merchandising The store had a dim lighting. Knitted sweaters were placed at different spots, not concentrated in one section. Men's department was on one side, while the women's department on the other side.

The wooden floor was covered with carpet.

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Customer Profile The survey was conducted on 29th January, 2016 at 6pm to 7pm and 31st January, 2016 at 6pm to 7pm, at the Tsim Sha Tsui Harbor City Denim and Supply store. For this survey conducted, a total of 16 customers were asked, and 10 responses were successfully collected.

Student

20%

40% 40%

Demographic

Unemployed

Employed with fixed income

Main customer is 20 to 40 years old women. 60% with no income, and 40% with a fixed amount of income. 80% are tourists, and 20% are local customers.

New Year’s Discount Travel

10%

60%

10%

30%

Psychographic

20%

Out of Boredom

Main purpose of shopping for people at store is an activity during travel. Brand recognition is important to customers because 90% of them have heard of the brand, while 10% have not. People chose to buy from the brand because of their high-end luxury style.

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Geographic There is one store located in Tsim Sha Tsui. The place is a tourists’ spot. A high income people concentrated area. There are high-end luxury brands nearby.

Others 10%

Outerwear

20%

30%

Denim

10% 30%

Buying behavior

Tops

Sweaters

According to observation, people mainly just pick items that they like. Customers do not specifically look at the sales section. Out of 5 customers in store, 2 of them tried on clothes, and 1 of them bought the item at last. Average spending is HKD$2000 or above. Mostly bought items are denim and sweaters.

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Competitors' Merchandise Analysis

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Price range: HKD$380-820

Price range: HKD$ 750-1020

Size range: XS to M

Size range: US size 2-8

Discount range: 50% to 70% off

Discount range: 20% to 55% off

Classifications: 21 categories under women's department, including graphic tees. sweaters, hoodies. and fashion tops.

Classifications: 14 categories under the women's department, including hoodies, sweaters, and jeans.

Price range: HKD$288-490

Price range: HKD$1090-2290

Size range: S to L

Size range: XXS to M

Discount range: 10% to 60% off.

Classifications: 9 categories under the women's department, including denim and sweaters.

Discount range: 10% to 50% off Classifications: 9 categories under the women's department, including sweaters, jackets, and denim.

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Comparing similar merchandise at stores according to the price, size and fabric.

A&F

l HKD $620 l Size: XS to S

60% Cotton / 20% Viscose / 20% Nylon

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Jack Wills

l HKD $750 l US Size 2,4,8

100% Cotton

American Eagle

Denim and Supply

l HKD $440 l Size: XS to L

HKD $1,490 Size: XXS to M

100% Cotton

100% Cotton

A&F

l HKD $620 l Size: XS to S l Fabric: 74% Cotton, 26% Nylon

Jack Wills

l HKD $1,020 l Size: US size 4, 6, 8 l Fabric: 55% Cotton, 35% Viscose, 10% Polyester

American Eagle

Denim and Supply

l HKD $534 l Size: One size l Fabric: 75% Acrylic, 10% Viscose, 10% Wool, 5% Alpaca

HKD $1,490 Size: XXS to L Fabric: 70% acrylic, 30% linen

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Perceptual Map Patterned

Lower Price

Higher Price

Plain

To measure the relation between price and looks, A&F has the most average price and equal number of patterned or plain looks. Denim & Supply and Jack Wills both have a high pricing, but the former has rich patterns on their sweaters, while the later mainly has plain looks. American Eagle has the lowest pricing among the four brands, it has more patterned sweaters than plain.

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45

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Trendy

Higher Price

Lower Price

Conservative

The map measures the relation between price and trend.

To measure trendiness of a brand, we identify the variety of clothings that each brand offers.

With more looks they have, the more trendy a brand is, lesser looks implies a more conservative style. A&F has more conservative looks when comparing to the two brands: American Eagle and Denim & Supply. However, it is more trendy when compared to the traditional style of Jack Wills. Pricing of A&F is positioned middle in the market. The map has also proven that pricing of sweaters does not relate to how trendy the look is.

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The map measures the relation between weight and quality.

Quality of clothes can be determined by fabric content, feel of texture, and thickness of grament.

By looking at the fabric content, we know that natural fibers, such as wool, silk and cotton which are 100% pure, stand up better than synthetics which contain a mixed content, such as cotton over acylic.

We can also touch the grament to determine if it is of high or low quality. Usually high qulaity garments are softer, and low quality garments are scratchy to our skin.

We learn that a garment is of low quality when it is too thin, and may see-through the fabric.

Hence, by adding up the above elements, it is discovered that sweaters that are sold in A&F have a medium level of quality and weight.

While for Jack Wills and Denim & Supply, they have high quality and heavy weight. American Eagle has the lowest quality and lightest weight. The map indicated that weight and quality are in corelation, a higher quality meant heavier in weight. Purer fabric content, softer texture, and thicker surface, may result in heavier weight of clothing.

This may assist in quality control of the brand's products.

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Heavy-weight

Higher Quality

Lower Quality

Light-weight

Trend Report

Key Looks 2015/2016

Cable knit and fuzzy sweaters are new to the trend, while the chunky sweaters were adopted at all times.

Colors are in monocromatic style.

Muted colors, pastels and dainty hues such as white, blue, pink and grey.

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Oversized sweaters are getting more common, so as the turtleneck design.

They can match together with skirts or shorts. (F., 2014)

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A&F Looks 2015/2016

Pattern: Crossed Pattern.

Fit: Easy.

Style: Turtleneck pullover; Ribbed trims.

Color: Light brown.

Size: XS to M Fabric: 100% cotton

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Pattern: Plain with strips Fit: Easy.

Style: Blanket Poncho; Open silhouette.

Color: Tan. Size: One size.

Fabric: 60% Cotton, 40% Acrylic.

Pattern: Fair Isle.

Fit: Easy.

Style: Pullover; Ribbed Trims.

Color: Cream with shine.

Size: XS to M Fabric: 57% Cotton, 43% Acrylic.

Pattern: Strips pattern.

Fit: Easy fit.

Style: Pullover; Ribbed Trims; Crewneck;

Hem with slide slits Color: White and Navy Blue Size: XS to M Fabric: 60% Cotton, 40% Acrylic.

Pattern: Crossed pattern.

Fit: Easy.

Style: Open Cardigan; Ribbed Trims.

Color: Red. Size: XS to M Fabric: 100% Cotton (Abercrombie, n.d.)

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Trend Forecast Fall Winter 2016/2017

The trend forecast is based on common looks for sweaters introduced by other brands in fall winter 2016/2017.

Slouchy High-neck

by J. Crew

Cashmere and wool blends with brushed finishes were used to match the slouchy highneck this season. Oversized and relaxed styles were created with the ease throughout the sleeve and body.

Key Colors

Pantone 13-1407

Pantone15-1425

Pantone17-1503

Pantone19-0303

Pantone11-4201

Key colors were developed from the WGSN catwalks team. After referencing to the overall key colors for the season. specific colors that may suit sweaters' trend were further selected.

(T., 2016)

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Pantone 14-5413

Pantone12-0741

Pantone16-1255

Fitted High-neck

by DKNY

High-neck designs are as always essential to sweaters looks. Fitted high-neck can both act as standalone and layering item.

Creative Cables

by ID Magazine

Cables are evolving with ribs, waffles, and a variety of textures to create hybrid stitch patterns. Oversized cables are used for new angles and linear patterns along the centre front and sleeve. Stitch line is essential for incorporating embellishments.

Neutral

Fresh

Sleeveless Tunic

by Prabal Gurung

Usually made out of heavy-gauge chunky knits in ribs, cables, or basic jersey stitch patterns.

Compromised with extended shoulders and lengths with hi-lo effects, also chunky toll-necks or cowls funnel the neck.

Cold-shoulder and cutout details are both popular designs on woven tops. The peek-aboo across the chest is newly introduced to the trend by Alexander Wang.

Cutout Sweater

by Alexander Wang

(Jones, 2015) (Sinclaire, 2015) (Shang, 2015) (Prescod, 2015)

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Drivers of trend for Abercrombie & Fitch Fall Winter 2016/2017

Target audience of the brand is mainly college students. They usually are not aware of runway shows to look for trends, they are simply influenced by their peers and celebraties for what looks are like. The best place to observe a trend is at college campuses, and through celebraties' casual wear styles.

The images are some influencers to college students in sweater looks.

American socialite Olivia Palermo.

Korean singer CL.

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Korean singer Hyuna.

(McEvaddy, 2016) (O'Callaghan, 2016) (N, 2015) (Baker, n.d.)

Australian model Miranda Kerr.

Korean singer G-Dragon

American singer Taylor Swift

American model Gigi Hadid

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The 6-month Plan

The 6-Months Plan for

Abercrombie & Fitch Sweaters Department Fall Sales $

Last Year

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Season Total

19,380.00

29,070.00

48,450.00

79,135.00

90,440.00

56,525.00

62,177.50

32323,000.00

70,377.30

Plan

20,283.00

31,011.00

51,738.00

88,472.00

96,770.00

67,026.00

% Inc/Dec

4.66%

6.68%

6.79%

11.80%

7.00%

18.58%

10.0%

% by month

6.00%

9.00%

15.00%

24.50%

28.00%

17.50%

100.0%

Stock/Sales

Last Year

2.61

2.54

2.40

2.32

2.25

2.10

1.80

Ratio

Plan

2.54

2.50

2.40

2.20

2.15

2.05

1.70

BOM STOCK $

Last Year

50,581.80

73,837.80

116,280.00

183,593.20

203,490.00

118,702.50

111,919.50

122,629.26

(Retail)

Plan

51,518.82

77,527.50

124,171.20

194,638.40

208,055.50

137,403.30

119,641.41

130,422.30

MARKDOWNS $

Last Year

-

2,907.00

9,690.00

15,827.00

27,132.00

22,610.00

78,166.00

Plan

-

3,101.10

10,347.60

17,694.40

29,031.00

26,810.40

86,984.50

% to Sales

0.00%

10.00%

20.00%

20.00%

30.00%

40.00%

24.48%

% by Month

0.00%

3.57%

11.90%

20.34%

33.37%

30.82%

100.00%

PURCHASES $

Last Year

42,636.00

74,419.20

125,453.20

114,858.80

32,784.50

72,352.00

462,503.70

(Retail)

Plan

46,291.68

80,755.80

132,552.80

119,583.50

55,148.80

76,074.51

510,407.09

PURCHASES $

Last Year

17,088.51

29,827.22

50,281.64

46,035.41

13,140.03

28,998.68

185,371.48

(Cost)

Plan

18,553.71

32,366.92

53,127.16

47,929.07

22,103.64

30,490.66

204,571.16

Seaon Total Sales $ Markup % Markdown %

Last Year

Plan

323,000.00

355,300.00

59.92%

59.92%

24%

24%

Gross Margin %

61.8%

61.8

Average Stock $

122,629.26

130,422.30

2.63

2.72

Average Stock Turnover

355,300.00

(Abercrombie, 2016)

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Last year sales information was extrapolated from published financial reports, and derived

from company research. Belows are for justification.

Sales by Store Location The company operates in three business segments, which are the US stores, international stores, and direct-to-consumer which associates directly with online operations. There are altogether 29 international stores, one of them is located in Hong Kong.

Sales by Classification The main classification in store can be divided into Men's and Women's departments. Under Women's department, there are five big categories, including tops, outwear and jackets, bottoms, sports or sleep wear, and acessories. Under tops department, it can be further classified into eight attributes: dresses and rompers, hoodies and sweatshirts, tees and tanks, shirts, fashion tops, graphic tees, sweaters and polo shirts.

Planned Sales by month Sweater is a key item during fall winter season. Most sales would be distributed among the two seasons, as summer and spring may be too hot for people to wear sweaters. Winter usually sell more than fall because it is during the end of the year and Chinese New Year, which people may shop more for tradition in Hong Kong. December would have highest sales figure because of Christmas and the cold weather. November would have the second highest because people were trying to shop for the upcoming season. Followed by January sales, when Chinese New Year take place. October would have the highest amount of sales during fall season because it was at the time which weather started to change. Followed by September and August sales.

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Planned Mark-up Mark-up was determined by expenses, sales, profit and reductions.

Planned Mark-down and Reductions Mark-downs were derived from last year's discounts offered, employee's discount remain constant as previous year, and an estimated amount of shortage.

Gross Margin Gross margin was took from last year's figure on financial report. The planned gross margin was estimated to keep constant because there was not much changes made in the past few years. In addition, the overall economy in Hong Kong is during a recession. We are hence expecting people to spend less on clothing.

Average Inventory It is derived from the beginning of month and end of month stock figures. The average of the six month's beginning of month and the last month's end of month stock was used.

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Inventory Turnover A&F is currently trying to change from their traditional style to a fashionable one. They are trying to put in trendy items for each season, and follow closely to the trend. Hence, inventory turnover may be higher than the previous year, as they had to clear out items from the previous season, to get ready for the next season.

BOM and EOM The beginning of month and end of month stock figures were developed from stock-to-sales ratio.

Referencing to the overall industry figure, A&F was assumed to keep a stock-t0-sales ratio that is slightly lower than the average. As A&F is currently striving for a revive, and aimed to follow closely to the fashion trend for their products offer.

Retail Purchases Retail purchases was derived from figures of sales, stocks and markdowns.

Planned purachases showed an increase because of an intention to raise sales figure for the upcoming year by increasing purchases, and amount of stock in store.

(Abercrombie, 2016)

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Assortment by Yarn

Cotton will be a significant portion because of the price and quality. Most sweaters in the market are made of 100% cotton, referencing to the competitors' research.

A&F used acrylic heavily in their sweaters during the past season. Sales for such product was satisfactory, hence, it will continue to be used.

Wool can keep people warmer during the cold weather. Nylon could blend with wool to create a little texture without an itchy feel to skin.

Mohair, alpaca and cashmere will be introduced.

They are relatively expensive when comparing to the other types of yarn, however, they give sweaters a soft texture, and at the same time, may keep people warm. Hence, mohair, alapaca and cashmere will be used at a small percent, on sweaters with higher pricing.

Cotton

30%

Acrylic

20%

Wool

20%

Mohair

5%

Alpaca

5%

Cashmere

5%

Nylon

15%

Mohair Acrylic

Cotton Wool

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Alpaca

Nylon

Cashmere

Assortment by Color

All color assortments are developed from the key color trend in previous section. As neutral palette is the most conservative trend, most sweaters will be bought in those colors for the coming season. Grey will take a heavier weighting because it fits the theme of A&F, and grey sweaters were sold out quickly at the A&F store last season. Followed by black and white color, which is a common color which appears on garment all the time, and is favored by designers and general public, indicated by their existence on every season's list of key colors. Besides, in order to suit the target audience's preference, feminine colors, such as light pink and light brown will be introduced. More outrageous colors, such as light green, yellow and orange will also be used at a small portion to attract some new cutomer groups.

Light Pink

10%

Light brown

10%

White

20%

Grey

25%

Black

20%

Light green

5%

Yellow

5%

Orange

5%

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Assortment by Size

A wider range of sizes will be placed in store for the next season, to serve a wider group of customers. Small-sized sweaters will carry the heaviest percentage, followed by medium-sized, extra-small-sized, large-sized and extra-large-sized respectively. This assortment is according to the needs for Hong Kong's market, determined based on information from sales associate in store.

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XS

20%

S

38%

M

30%

L

10%

XL

2%

Pricing

The pricing assortment is based on observation in pricing for last year. Products were basically classified into six prices as stated.

There will be a heavier weighting on low pricing products which range from HKD$380 to $480 compared to last year. As most customers of the brand were attracted to purchase during sales season, lowering the price may result in an increase of sales.

Medium pricing sweaters, which range from HKD$520 to $720, will have the heaviest weighting.

As the brand's image is important to the brand, which aimed at focusing upon high-quality merchandise that compliments the classic casual American lifestyle. Pricing items too low may result in the brand to appear having a lower quality, and this may counter the brand's vision.

High pricing products will be maintained, but at a lower portion.

$380

10%

$480

20%

$520

30%

$620

25%

$720

10%

$820

5%

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Assortment by Style and Look

The styles and looks are developed from a trend forecast in the previous section.

Distribution is determined according to the length of time that each style and look was introduced to the market. This may hint the market's acceptancy level to the style.

Competitors' styles and looks, as well as teen's celebrities' casual wear looks in knitted sweaters were also referenced in order to make the buying decisions.

Assortments will be based on different classifications, such as the neck line design and stitching methods.

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Neck-Line Design

25%

Fitted High-Neck

Sweater by Club Monaco

V-neck Cut Sweater by Gucci

20%

Round Neck

Sweater by Charlotte Eskildsen

Slouchy High-Neck Sweater by Malene Birger

30%

25% 73

Stitching Methods

Cable Knit Sweater by Parker

Fuzzy Knit Sweater by J. Crew

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30%

20%

Engineered Crew

Sweater by Stella McCartney

30%

Knit with patterns

Sweater by Valentino

20%

Cutting and Hemline

Cut-out Sweater

20%

Sleeveless Tunic

Sweater by Phillip Lim

20%

Sweater by Ohne Titel

High and low hemline Sweater by Prabal Gurung

35%

Ribbed Trim

Sweater by M Missioni

35% 75

Reference Schlossberg, M. (2016, January 12). The bizarre history of Abercrombie & Fitch - and how the retailer is transforming yet again. Retrieved

March 14, 2016, from http://www.businessinsider.com/abercrombie-fitch-crazy-history-2011-4 Jones, J. (2015, September 12). The Sweater – A/W 16/17 Category Update. Retrieved March 14, 2016, from http://www.wgsn.com/content/ board_viewer/#/63363/page/7 Sinclaire, R. (2015, September 12). The Sweater – S/S 17 Category Update. Retrieved March 14, 2016, from http://www.wgsn.com/content/ board_viewer/#/64290/page/7 T. (2016, March 9). Key Colours A/W 16/17: Apparel. Retrieved March 14, 2016, from http://www.wgsn.com/content/board_viewer/#/64965 /page/3 Abercrombie & Fitch. (2016). 2015 Financial Report. Retrieved March14, 2016, from http://globalbb.onesource.com/web/Reports/ ReportMain.aspx?KeyID=571&Process=CP&Report=FINREPSTD F. (2014, October 15). 8 SWEATERS Styles To Wear This Fall. Retrieved March 14, 2016, from http://thefashiontag.com/2014/10/15/8- sweaters-styles-to-wear-this-fall/ Abercrombie & Fitch. (n.d.). Retrieved March 14, 2016, from http://www.abercrombie.com.hk/en_HK/womens Shang, A. (2015, April 10). Fall 2015 Trend: Loose Ends. Retrieved March 15, 2016, from http://wwd.com/fashion-news/trends/fall-2015- sweater-trend-10109610/ Prescod, D. (2015, March 24). The Complete Fall 2015 Trend Guide. Retrieved March 15, 2016, from http://www.elle.com/fashion/trend- reports/news/g26017/the-complete-fall-2015-trend-guide/?slide=20 Berfield, S., & Lindsey, R. (2015, January 23). How Abercrombie & Fitch and CEO Michael Jeffries Lost U.S. Teens. Retrieved March 16, 2016,

from http://www.bloomberg.com/news/features/2015-01-22/the-aging-of-abercrombie-fitch-i58ltcqx McEvaddy, S. (2016, January 30). Celebrity Street Style. Retrieved March 16, 2016, from http://www.theworldwidewardrobe.com/celebrity- street-style-3/ O'Callaghan, L. (2016, January 13). Celebrity Casual Style: The Best A-List Outfits. Retrieved March 16, 2016, from http://www.look.co.uk/

pictures/celebrity-casual-style-2013-the-best-outfits-so-far N. (2015, October 20). Style Watch: How celebrities wear oversized sweater? Retrieved March 16, 2016, from http://fabfashionfix.com/style- watch-how-celebrities-wear-oversized-sweater/ Baker, J. (n.d.). Celebrity Style: 11 Ways To Wear A Fall Sweater Now. Retrieved March 16, 2016, from http://www.whowhatwear.com/ celebrity-style-jessica-alba-olivia-palermo-reese-witherspoon-how-to-wear-sweaters-fall-fashion-trend-2013/

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