Fasm final paper

Fasm final paper

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  Savannah College ofArt and Design Spring/Summer 2014 Elva Jiang & Lauren Springett Retail Buying Stimulation
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  CONTENT Brand Description Brand Identity CoreMission Scope & Size Target Customer Demographics Psychographics Attitudes SWOT Analysis Competitors Cultural Trends Fashion Trends Brand Vision Six Month Buying Plan Assortment Plan Individual Store: Miami, FL Individual Store: Grand Rapids, MI
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  Forever 21 isan American based clothing retailer that has branches spread out worldwide. Its core mission to provide shoppers with an unprecedented selection of today’s fashions, always changing and always in style. Celebrated by many style conscious and trend-savvy shoppers, Forever 21 has quickly become the source for the most current fashions at the greatest value. BRAND DESCRIPTION
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  1984: Korean-American DoWon Chang and his wife Jin Sook open their first store, Fashion 21, in Los Angeles, measuring 900 square feet. Sales at the end of the first year total $700,000. The Changs open a new store every six months, changing the chain’s name to Forever 21. 2001: Four 24,000 square feet XXI flagship stores open in Texas, Miami, LA, Chi- cago and Canada. Larry Meyer joins as chief financial officer, becoming executive vice-president in 2006. 2008: Chang daughters Linda and Esther join the fashion empire as chief market- ing officer and chief visual officer, respectively. 2010: Forever 21 opens its first European store in Birmingham, followed by its second in Dublin. 2011:LondonflagshipstoresareunveiledonOxfordStreetandWestfieldStratford City, spanning 35,000 and 68,000 square feet respectively. Future UK openings are planned for Lakeside in Essex, Bluewater in Kent, Liverpool One, Glasgow and in the MetroCentre in Gateshead. European store openings this year include Brussels, Antwerp, Barcelona, Vienna and Paris. The store footprint spans around 480 outlets, with sub-brands such as Forever 21+, For Love21 and 21Men. Forbes magazine estimates the Chang family to be worth $2.2 billion. 2013: Forever 21 has increased to 500 stores worldwide with new stores entering the Asian market. HISTORY OF FOREVER 21
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  Core Mission: Forever21 provides shoppers with an unprecedented selec- tion of today’s fashions, always changing and always in style. Brand Identity: Celebrated by many style conscious and trend-savvy shop- pers, Forever 21 has quickly become the source for the most current fash- ions at the greatest value. Place (Distribution) In store/Online Total of 500 stores worldwide 355 stores in United States E-Commerce: www.forever21.com
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  TARGET CUSTOMER Demographics Gender: Female Age:18-34 Education: In College/Completed HHI: $1,000+ Psychographics Highly fashionable women on a lower budget. Motivated by the trendy, fashionable and frequently changing clothing styles on the market. Wants runway looks for a reasonable price “Disposable” clothing 46% buy average quality items to save money. Like to stay informed, connected, and entertained.
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  TARGET CUSTOMER Lifestyle
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  SWOT ANALYSIS STRENGTH Clothes: $15~ $45 Shoes: $10 ~$42 Jewelry: $1.50 ~ $19 Bag: $15 ~ $42 Hats: $10 ~ $20 Beauty: $2 ~ $19 Eyewear: $6 ~ $8 LOWER PRICE RANGE HIGH TURNOVER RATE Short Periods of 4 - 6 weeks or less VARIOUS STYLE LINES Top Left: Sophisticated Line Top Right: Underwear Line Bottom Left: Tropical Line Bottom Right: Jeans & Casual Line BRAND NAME A national sample of 1,914 females 13– 29 reflects preferences among “mass” millennials; a Teen Vogue It girl reader panel sample of 1,234 respondents re- veals the brands that have been adopt- ed by fashion-savvy influentials.The Top 20 “Love List” brands ranked are: 1. Forever 21 2. Victoria’s Secret 3. Victoria’s Secret Pink 4. Sephora 5. H&M
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  SWOT ANALYSIS WEAKNESS QUALITY -College studentsspend $784 a month on discretionary expenses. Millennials are the largest demographic purchasing new tech- nological gadgets and fashion apparel. - 63% of Millennial stay updated on brands through social networks. - 84% report that users generated content on company websites influences what they buy. SWOT ANALYSIS OPPORTUNITY MILLENNIALS ON SOCIAL MEDIA
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  COMPETITORS FAST FASHION RETAILERS “Fashionand Quality at the best price.” H&M is successful at having a substantial online presence in the form of social media. The company has developed a smartphone app, which allows loyal customers to receive newsletters on latest collections and sales promotions. H&M has become a multinational fast fashion retailer and contin- ues to grow globally. The company opened 350 new stores in Chine alone in 2013. “We use the power of fashion and fun to help our girl express her individuality and fit in -- while standing out. We always listen closely, keep it real, and offer our product at a great price.” Wet Seal is successful in targeting a focused target market -- the young, teenage girl, who has limited budget, but desires to express individuality through fashion. Wet Seal provides the styles at the right price point that matches the needs of their target customer. “Charlotte Russe delivers style in clothing and accessories, providing an exciting, fashionable assortment of merchandise that compliments virtually every facet of our customers’ lifestyle. Charlotte Russe provides fashion and lifestyle needs of young, fashion-conscious women in their teens and early twenties, offering trend- right apparel and accessories at value prices.” Similar to Wet Seal, Charlotte Russe has a focused target market-- the California teenage girls. They provide trendy styles in reasonable prices. However, the brand is known for the poor quality of their products, which has been the reason that hinders their growth.
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  COMPETITORS ACTIVE WEAR RETAILERS Pinkutilizes celebrity endorse- ment as the main promotional strategy to strengthen custom- er loyalty and increase brand equity. Victoria’s Secret holds a fashion show annually as their biggest promotional function. Their strong product develop- ment chain allows them to pro- vide quality products, which leads to a large customer base among women who value the luxurious products and shop- ping experience. The mission statement of Lulu- lemon athletica is really “the lu- lulemon manifesto,” which is a list of 31 ideas and life philoso- phies for healthy and posistive living. Their unique brand iden- tity leads to a strong base of customer loyalty, which allows them to maintain high profit margins. Under Armour strives to make all athletes better through pas- sion, design and relentless pursuit of innovation. They provide a range of innovative products, using high-tech fab- rics that allow athletes to per- form at their highest potential. The company is also known for sponsoring college athletes as their promotional strategy.
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  CULTURAL TREND Part ofthe reason active wear apparel is growing faster than the overall business is attributed to the consumer’s passion to get more fit and desire to look active. Addition- ally, changing lifestyle, increase in sports participation, in- creasing aging but active population, growing popularity of adventure traveling, and increasing number of women participation in sports are all contributing factors in the growth of the active wear business. Also, the lines of dif- ferentiation between sports fitness clothing used for cas- ual, business, every day or street wear are being further blurred. As dressing casually becomes more acceptable, women feel they are getting value when investing in active wear. The lines of differen- tiation between fitness clothing used for casual, business, every day or street wear are being blurred. As dressing cas- ually becomes more ac- ceptable, women sense the increasing value of active wear.
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  COLOR RUN URBAN BICYCLING Cyclingis becoming an increasing- ly popular form of urban transpor- tation. 55 major metropolitan ar- eas in the United States have built the bikeshare system. New York City is in the process of launch- ing the system. In China, there are 435 million bicycles, suggest- ing the potential market of active wear globally.
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  FASHION TREND Active wearinspired fashion has been in the air for the past couple seasons but with so many designers embracing the sporty looks, spring 2014 seemed to be its official kickoff. Athletic staples like track pants, sports bras and even cricket knits made their way down the runways of the major fashion capitals. At DKNY track pants, racer tanks and windbreakers raced down the runway. VPL showed running tights, sporty t-shirts and workout gear constructed from water repellant wicking fabrics. Prada gave their active inspired looks a dose of luxury by adorning them with jewels. Even ultra-feminine Vera Wang played her had at sport chic with crop tops, mesh fabrics and zip-up track jackets. Also, fashionistas have been frequently seen swapped their heals for sneakers. Amongst the trends within active wear intended for active purposes, neon colors, cut out shapes, and edgy prints are becoming increasingly popular.
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  FOREVER 21 ACTIVE WEARLINE TRENDY AFFORDABLE FUNCTIONAL To differentiate the brand from our competitors – Pink, Lululemon, and Under Armor— Forever 21 is aiming to de- liver a line of active wear that is trendy, affordable, and functional. It will attract the young target customer who has limited budget, yet still desires to look stunning and stylish in her workout outfits.
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  SIX MONTH BUYINGPLAN ASSORTMENT PLAN assortment plan FASM 245 Retail Buying Simulation Assortment Plans Fall 2013 Focus Product Category: ______________________________FOREVER 21 ACTIVE WEAR Planned Purchases, Retail: $114,600,000 Average Retail Price: $16.8 % $ Unit % $ Avg. Sizes Total Purchases Purchases Total Purchases Retail 2 15% $17,190,000 1,023,214 15% $17,190,000 $12.8 4 22% $25,212,000 1,500,714 25% $28,650,000 $13.8 6 22% $25,212,000 1,500,714 20% $22,920,000 $25.8 8 18% $20,628,000 1,227,857 25% $28,650,000 $20.8 10 13% $14,898,000 886,786 15% $17,190,000 $10.8 12 10% $11,460,000 682,143 100% $114,600,000 100% $114,600,000 6,821,429 Shorts Classification Sports Bra Top Jackets Yoga Pants Project Model Page 1 FASM 245 Retail Buying Simulation 6 Month Buying Plan Spring 2014 Focus Product Category: ___________________________Women's Activewear (000's) February March April May June July Spring 2014 12000.0 20000.0 15000.0 15000.0 22000.0 16000.0 100,000.0 12% 20% 15% 15% 22% 16% 100% 38400.0 48000.0 42000.0 39000.0 44000.0 33600.0 39714.3 3.2 2.4 2.8 2.6 2 2.1 48000.0 42000.0 39000.0 44000.0 33600.0 33000.0 1000.0 2000.0 4000.0 5000.0 5000.0 3000.0 20,000 5% 10% 20% 25% 25% 15% 100% 22600.0 16000.0 16000.0 25000.0 16600.0 18400.0 114600.0 9492.0 6720.0 6720.0 10500.0 6972.0 7728.0 Focus Product Category: Women's Fashion Apparel Spring 2014 Average Stock, Retail: Inventory Turnover: Spring 2014 Plan Reductions % Fall Purchases, Retail Est. Net Sales, Spring 2013 Plan Net Sales, Spring 2014: Plan % Last Year: % Fall Spring 2014 6 Month Buying Plan Purchases, Cost Plan BOM Stock Stock / Sales Ratio (000's) Planned Reductions, $: Reductions % Sales: Plan IMU %: Net Sales Plan EOM Stock 58.0% $25,000.00 $100,000.00 300% 39714.3 2.52 $20,000 20%
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  f Grand Rapids, MI Miami,FL Planned Net Sale: $200,000.00 Due to the geographic nature of Grand Rapids, Ml, a large portion of the net sales is planned towards later of the season. Planned Net Sale: $300,000.00 The geographic nature of Miami, Fl, brings summer early to the area, which is why a large portion of the net sales is planned towards early in the season. Grand Rapids, MI Page 1 FASM 245 Retail Buying Simulation 6 Month Buying Plan Spring 2014 Focus Product Category: ___________________________Women's Activewear (000's) February March April May June July Spring 2014 24.0 26.0 30.0 40.0 44.0 36.0 200.0 12% 13% 15% 20% 22% 18% 100% 84.0 80.6 84.0 92.0 83.6 64.8 77.0 3.5 3.1 2.8 2.3 1.9 1.8 80.6 84.0 92.0 83.6 64.8 50.0 3.0 6.0 9.0 15.0 15.0 12.0 60 5% 10% 15% 25% 25% 20% 100% 23.6 35.4 47.0 46.6 40.2 33.2 9.9 14.9 19.7 19.6 16.9 13.9 Average Net sales 238.1$ Grand Rapids, MI = $200.0 % Fall Purchases, Retail Purchases, Cost Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions Reductions % Sales: 20% Plan IMU %: 58.0% (000's) Spring 2014 6 Month Buying Plan Average Stock, Retail: 77.0 Inventory Turnover: 2.60 Planned Reductions, $: $40.0 Plan % Last Year: 236% Spring 2014 Plan Net Sales, Spring 2014: $200.00 Est. Net Sales, Spring 2013 $59.52 Miami, Florida FASM 245 Retail Buying Simulation 6 Month Buying Plan Spring 2014 Focus Product Category: ___________________________Women's Activewear (000's) February March April May June July Spring 2014 51.0 75.0 48.0 45.0 45.0 36.0 300.0 17% 25% 16% 15% 15% 12% 100% 163.2 180.0 134.4 117.0 99.0 75.6 119.9 3.2 2.4 2.8 2.6 2.2 2.1 180.0 134.4 117.0 99.0 75.6 70.0 6.0 15.0 12.0 9.0 9.0 9.0 60 10% 25% 20% 15% 15% 15% 100% 73.8 44.4 42.6 36.0 30.6 39.4 31.0 18.6 17.9 15.1 12.9 16.5 Average Net sales 238.1$ Miami Florida = $300.0 % Fall Purchases, Retail Purchases, Cost Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions Reductions % Sales: 20% Plan IMU %: 58.0% (000's) Spring 2014 6 Month Buying Plan Average Stock, Retail: 119.9 Inventory Turnover: 2.50 Planned Reductions, $: $60.0 Plan % Last Year: 404% Spring 2014 Plan Net Sales, Spring 2014: $300.00 Est. Net Sales, Spring 2013 $59.52
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  FOREVER 21 ACTIVE WEARLINE STATEMENT OF OPPORTUNITY Forever 21’s current active wear line is a rath- er undeveloped category in the company. We believe that by introducing a new line of active wear that is trendy, affordable, and functional to the season of Spring/Summer 2014, Forever 21 will be able to take on rivals in the active wear marketplace against strong competitors such as PINK, Lululemon, and Under Armor. The affordable price, along with exciting patterns and color stories, will attract young millennials, who have limited budgets, to start filling their wardrobes with stylish Forever 21 active wear items. Forever 21’s active wear products will allow them to look stunning and confident both in the gym and on the streets. By implementing appropriate marketing strategies via the social media platforms, For- ever 21 will be able to reach to their target millennial customers, and ultimately achieve the planned net sales of $100,000,000.00.
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