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Overview and marketing plan for fictitious eco-friendly womenswear retailer.
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Content
Executive Summary 3
Company Description 4
Location 4
Product Overview 4
Branding 8
Market Analysis 10
Target Consumer 10
Market Outlook 11
Competitors 12
SWOT Analysis 13
Marketing Recommendations 13
Product 13
Service 14
Atmosphere 14
Price 15
Placement 16
Promotion 16
Sources 17
Catamount Ventures, L.P. 400 Pacific Ave., 3rd Floor San Francisco, CA 94133-4607 To Whom It May Concern: Oiseau, the French translation for “bird,” is a contemporary women's boutique that focuses exclusively on sustainable and eco-friendly fashion and accessories. The store will be located in the Fillmore Street shopping area.
The goal of Oiseau is to show our customer that she doesn’t have to wear hemp and tie-dye to be “green.” She can still be fun, playful, and fashionable. The store will intend to carry a mix of basic and fashion items from brands that focus on the idea of sustainability, such as Alternative Apparel, Loomstate, and Edun. Oiseau seeks to target young women aged 18-30 who are urban, trend-aware, and of course, interested in the environment and sustainability. These consumers would already live in the San Francisco area, and likely frequent the Fillmore shopping district. The median income of Oiseau shoppers would be in the middle-middle to upper-middle income class bracket.
Pricing will be aligned with stores with somewhat similar demographics, especially where they pertain to fashion-conscious, relatively affluent, Generation Y consumers. Essentially, Oiseau will aim to replace items that would normally be offered to this consumer with eco-friendly ones. The store will focus on products in the contemporary price point.
Notably, Oiseau will essentially have no direct competition within the San Francisco area. While there are some stores focusing on eco-friendly clothing, none seem to focus solely on contemporary fashion. Store that carry eco-conscious lines are most often not promoting them as such.
Industry reports strongly suggest that not only does “green” fashion have a strong and loyal following, but that the trend is expected to grow despite economic adversity. Oiseau would surely be a strong addition to Catamount’s environmentally conscious portfolio. Sincerely, Raylin Wright Founder and Owner
oiseau
eco fashion
2176 Fillmore Street San Francisco, Ca 94115 • 415.607.5609 • oiseausf.com
Company Descr ipt ion Oiseau, the French translation for “bird,” is a contemporary women's boutique that focuses exclusively on sustainable and eco-friendly fashion and accessories.
Located in the stylish Fillmore District of San Francisco, Oiseau seeks to target young women aged 18-30 who are urban, trend-aware, and of course, interested in the environment and sustainability. Ideally, select publications that focus on fashion and an eco-friendly lifestyle would also be included. The interior of the store would have a very natural, organic feel.
Locat ion Located at 2185 Fillmore Street, Oiseau would take over the space, which was formerly Shabby Chic. At this location, a major bus route stops nearby, driving traffic. Marc by Marc Jacobs is across the street, bringing stylish consumers to the area. Jurlique, a store offering natural cosmetics, is also nearby, bringing in consumers who are interested in ecologically friendly products.
Product Overview Greg Alterman, founder of Alternative Apparel, once said in an interview, ”Everybody has to wear clothing, so you might as well wear something good for the earth.”1 Oiseau seeks to carry a mix of basic and fashion items from brands that focus on the idea of sustainability. Our goal is to show our customer that she doesn’t have to wear hemp and tie-dye to be “green.” She can still be fun, playful, and fashionable. Below are brands that Oiseau feel be key performance brands because of existing market presence, assortment, and fashionability. 1 Consumer Trend News. Alternative Apparel. Youtube.
Alternative Apparel focuses on authenticity and comfort. In 1995, the company set out to create the perfect t-shirt – one that was “designed for fashion, made for comfort, and tailored for a flawless fit. The company has since expanded to include a multitude of fashion garments. Oiseau will carry the lined titled Alternative Earth, which focuses on eco-friendly and sustainable apparel. 2 www.alternativeapparel.com/alternativeearth
Alternative Earth will be Oiseau’s primary source of basic items such as tee shirts (non-graphic), sweatshirts, jersey pants, and non-fashion cardigans. While Alternative Earth is a diffusion line, consumers would likely recognize Alternative Apparel.
The mission of Edun is to help build Africa as a viable source of production for fashion. Founded on the premise of trade not aid, EDUN is a for profit business that aims to raise awareness of the possibilities in Africa to encourage emulation. To help achieve this goal, EDUN is investing in the development of a community-based value chain, beginning with organic cotton. 3 www.edunonline.com
Edun would be a source of fashion apparel for Oiseau. Products would include dresses, fashion tops, sweaters and cardigans, outerwear, and select graphic tees.
2 “About Alternative.” <http://www.alternativeapparel.com/About-Alternative/>. 3 “About Edun.” <http://www.edunonline.com/about.aspx>.
Dedicated to creating a demand for organic cotton and socially responsible methods of production, Loomstate focuses their design approach on their respect for nature. Natural shapes and colors influence their casual clothing, which is primarily made up of graphic tees and jeans. 4 www.loomstate.org Loomstate will likely become the primary denim brand of Oiseau, both because of their relatively wide assortment of styles, and because the brand is already well known and will be familiar to consumers. Graphic tee shirts will also be included. Loomstate does produce other garments such as fashion tops, dresses and outerwear. Oiseau will consider these items, but they will be carried to a much lesser extent than the brand’s denim or tee shirts.
Designed by a former sculptor and a fashion industry buff, Prairie Underground creates unique, earth
friendly garments crafted from organic cotton and wool. 5 www.prairieunderground.com Prairie Underground will be Oiseau’s largest supplier of outerwear. The company carries an impressive selection of blazers and jackets, and fashion knits such as sweatshirts, leggings, and dresses.
4. “About Loomstate.” <http://www.loomstate.org/about/>. 5 “About Us.” <http://www.prairieunderground.com/aboutUs.html>.
Oiseau will also consider merchandise and clothing that promotes a charity, cause, or social issue. These items will be considered on a case-by-case basis.
In addition to providing consumer with sustainable merchandise, Oiseau seeks to educate the public on the eco-conscious lifestyle. Publications might include Boho, and Peppermint (from Australia). Books could include Green Chic, Eco-Chic: The Fashion Paradox, and Style, Naturally.
Nahui Ollin - made by impoverished Mexicans from discarded candy wrappers
Katharine Hamnett – for Enviornmental Justice Campaign to end illegal fishing
CFDA Haiti Charity Tee – proceeds are donated to efforts to rebuild
Bird silhouette is cut out
Branch embossed - convex on front
Recycled cardboard
Bird silhouette is cut out
Branch embossed - concave on back
Branding The logo of Oiseau is a green bird. The bird, of course, relates to the name, which is the French translation. Consumers can also connect the color to the idea of eco-friendly merchandise, and to nature. The typeface is clean and modern, and is meant to appeal to the store’s contemporary demographic.
Packaging In lieu of traditional bags, Oiseau would utilize reusable shopping bags made from organic cotton. This would serve to strengthen the idea of the sustainability, even after the consumer has left the store. Business Card Front:
Back:
Branch embossed – concave on back
Letterhead
2185 Fillmore Street San Francisco, Ca 94115 • 415.607.5609 • oiseausf.com
Market Analysis Target Consumer Oiseau seeks to target young women aged 18-30 who are urban, trend-aware, and of course, interested in the environment and sustainability. These consumers would already live in the San Francisco area, and likely frequent the Fillmore shopping district.
The median income of Oiseau shoppers would be in the middle-middle to upper-middle class bracket. Because many consumers are young, they may be “independently-dependent.” While they themselves may be students without significant income, they may be getting allowance from parents. In addition, because the store focuses on “green” merchandise, not just a specific fashion style, more affluent consumers may be attracted because of the product attributes.
Barbie M. Casasus, senior director and consumer strategist at Iconoculture, a global consumer research and advisory company, states that 20-28 year olds represent approximately $520 billion in buying power. They are also willing to pay more for organic and fair-trade merchandise.
“Gen Y and the Millennials are really driving this trend,” she says. “And they’re pretty passionate about it. While it’s a category that’s still in its infancy, the demand is growing.” 6
According to a study conducted by Maritz, a consumer research company, 47% of generation Y consumers would be willing to pay more for “green” brands. Of this, 77% stated they would do so because they “care about the environment. 21% because they feel it is the “right thing to do.” 2% would do so so that others knew they were environmentally aware.
In addition, 46% of those polled said they would shop at a retailer more often if they knew they were environmentally conscious. 6
Iconoculture has discovered four distinct shopping groups interested in sustainable fashion: the Living Green, the core fashionista, the Walking Green, and the Spending Green.7
The Living Green: This consumer has embraced all aspects of an eco-friendly lifestyle, from eating organic foods, buying used clothing from vintage and thrift stores, to buying garments made from recycled fabrics. “[She] is driven by dedication, purity, and awareness,” notes Casasus.
The Core Fashionista: This consumer is ultimately fashion-driven. In a traditional marketing sense, she would be the trendsetter. “She sees herself in a power position,” states Casasus. “She is rethinking and redefining her sense of style and eco-chic.” 6 Mahoney, Sarah. “Gen Y Demands It: Green Fashion That’s Chic.” Marketing Daily. 7 April
2008. <http://www.mediapost.com/publications/fa=Articles.showArticle&art_aid=80029>. 7 “47% of Gen Y Would Pay More For Green Brands.” Environmental Leader. 14 September 2007.
<http://www.environmentalleader.com/2007/09/14/47-of-gen-y-would-pay-more-for-green-brands/>
GREEN NOT JUST A TREND “Fashion and the business of fashion are all about trends. Green acts like a trend... It has the same energy. As a fashion director, I look for energy. And with Green, you can’t get enough of it – you want a piece of it. It is the only trend I have ever seen that is a movement. In fashion, movements are never really talked about. But this is real. And it has the energy of a trend, but will change and garner even more energy. It is going to get more sophisticated and edgier. People are going to figure out how to internalize and externalize it. It is not going to go away. If a store like Barneys is feeling that on all different levels, then you can be sure it is here for good.”
Jul ie Gi lhart, Barneys New York, senior vice president and fashion director
The Walking Green: These are the trend followers. They are often interested in eco-fashion because they want to belong to a community that they feel is important. Style wise, these are the early to late trend adaptors. This is the riskiest group, as they may not legitimately be interested in the “green” movement, and are not trendsetters.
The Spending Green: Iconoculture found that this group is interested in “green” fashion because, “that sense of exclusivity and entitlement are important to her. She embraced green when it was still very much a luxury category, and she intends to keep it that way. For her, buying green connotes luxury, not any kind of sacrifice."
Market Out look The author of the book, Style, Natrually, notes that she is persistently confronted with the question, “Is “green” fashion a trend, or here to stay?”
Her answer is, “companies are...assembling entire divisions to address sustainability, not only in their products, but across their company’s practices... I highly doubt that companies are going to disassemble those divisions and design philosophies two seasons from now because it’s ‘out of style.’” 8
David E. Wigder. Senior Vice President of Digitas, a marketing solutions firm, states, “Even mainstream retailers are weaving ‘green’ into their overall merchandise... Even during tough economic times, there will always be interest in ‘green’ clothing by those that can afford the premium for them.” 6
Sustainable fashion may perhaps be most commonly associated with higher-end designers such as Stella McCartney, or with low end, “hippie” apparel. But there are, of course, many contemporary designers, such as Loomstate and Edun, who are perhaps more well-known in urban environments.
But even big-box retailers are beginning to cash in on this trend. In a report by Deloitte titled, 2009 Industry Outlook: Challenging Times, Emerging Opportunities, stores such as JC Penney’s are focusing on sustainability because, “sustainability is a growing priority for shoppers.”
However, the report also notes that firms focusing on “long-tail” retailing (meaning, they focus on niche rather than mass markets,) seem to be quite lucrative. In that sense, specialty stores, like Oiseau, would have an advantage, in that it would focus specifically on a niche market, and seek to be the expert. 9
8 Oakes, Summer Rayne. Style, Naturally. Page 20. 2009 Chronicle Books. 9 Deloitte. 2009 Industry Outlook: Challenging Times, Emerging Opportunities.<http://www.deloitte.com/-
assets/DcomUnitedStates/Local%20Assets/Documents/us_industryoutlook_ChallengingTimesEmergingOpportunities_February2009.pdf>.
Behavior Demographics Geography Psychographics Actively seeking “green,’ fashionable merchandise
Age 18-34 Generation Y
San Francisco local Interested in eco-friendly lifestyle
Regular users, first-time users; attracted to product attributes
Female From affluent neighborhood
94108, 94115, 94123, 94114
Purchases organic groceries
High Usage Student, new grad, young professional
Supports charities for ethical change
Target consumers would be from more affluent neighborhoods in the San Francisco metro area. Neighborhoods would include Union Square, Fillmore, Marina, and Noe Valley. 10, 11
• Union Square 94108 o Population 13,716 o 51.3% female o 28.5% 20-34 YO o Total: 2,005
• Fillmore 94115 o Population 33,115 o 51.8% female o 37% 20-34 o Total: 6,347
• Marina 94123 o Population 22,903 o 53.3% female o 42.1% 20-34 o Total: 5,139
• Noe Valley 94114 o Population 30,574 o 40.2% female o 33.9% 20-34 o Total: 4,117
Total: 17,608
x47%*
8,276 Potential Consumers
*According to a study by Maritz, 47% of Generation Y consumers are interested in “green” fashion.
Compet i tors Oiseau, essentially, has no direct competition within the San Francisco area. While there are some stores focusing on eco-friendly clothing, none seem to focus solely on contemporary fashion.
• Eco Citizen: while this store, located in the Marina district, does carry brands like Edun and Loomstate (only tops), they focus on higher-priced designer apparel. Lines carried include Organic by John Patrick (Jacket priced at $565), Linda Loudermilk (dress priced at $759), and Sara Shepherd (dress priced at $1,200.) Being in the Marina district, the store likely has a higher frequency of Gen X consumers.
• American Rag: located on Van Ness near Polk Gulch, American Rag does have a relatively similar demographic to Oiseau’s (18-30, urban, trend aware, fashionable) and carries lines such as Loomstate, Levi’s organic, and Tom’s shoes. They also carry a large selection of vintage items. This store is not focused on eco-fashion by any means, however. It seems to be purely style-driven.
10 San Francisco Demographics. <http://www.zillow.com/local-info/CA-San-Francisco-
people/r_20330/>. 11 San Francisco County, California. <http://quickfacts.census.gov/qfd/states/06/06075.html>.
• Azalea: this boutique, for men and women, is located in Hayes Valley. While, like AR, the store is not focused on eco-fashion, it has a well-defined, contemporary consumer. Items are on trend or fashion-forward. Notably, this store has a well-developed e-commerce site.
SWOT Analysis
Market ing Recommendat ions Product Based on consumer breakdowns as identified by Iconoculture in regards to Gen Y eco shoppers, Oiseau’s projected core consumers would be The Core Fashionista, who is ultimately fashion driven trend-setters while being interested in sustainable fashion, The Walking Green, who are trend followers interested in eco fashion because of its rise in popularity, and The Spending Green, who view eco-fashion as a luxury item. The Living Green may make up some of Oiseau’s demographic, however, that customer may not see the merit of purchasing a new item versus a recycled or used one.
While Oiseau’s key consumers may be interested in trends, it is important that “entrance items,” likely price-sensitive basics, not be excluded from the product mix. While The Core Fashionista, The Walking Green, and the Spending Green may be interested in a more fashion forward item, another Gen Y consumer who does not fit into these groups may not be. She may be interested in the idea of eco-fashion, but not necessarily be fashion-driven. In addition, it would be assumed that consumers not even in Gen Y, but likely Gen X, would make up some of Oiseau’s sales. This secondary group of consumers may view trend items as being a bit too “young” for their tastes, but be interested in the idea of eco-friendly fashion none-the-less. In this case, and again, more basic items would satiate this need.
But one major advantage, of course, is that basic items, such as tee shirts, have become fashionable. There is no reason to expect that the basic items would not immediately appeal to the key consumers as well.
Strengths Weaknesses Opportunities Threats Located in ideal location Vendor selection highly
limited Can easily expand – brand could include
cosmetics, men’s etc.
Volatile economic climate
Strong brand image Store personnel must be familiar with product and
attributes
“Green’ market expected to grow in popularity
As eco-fashion grows in popularity, other stores could simply carry more
“green” brands Entering ‘green’ market during growth phase
Must be able to sell product on aesthetics if attributes don’t interest
Many smaller vendors do not require large-
quantity purchase orders
Little explicit market data on eco-fashion makes
predictability hard No direct competition No similar stores means
it is difficult to tell if concept will work
More brands are adopting “eco,” meaning product selection in the
future will be larger
Growing number of e-commerce sites focusing
on eco-fashion
Unique store concept Concept trumps product
Fashion/Trend
Basic
Service Oiseau’s level of service will likely fall under full-service, as it is a specialty retailer. Associates will not only have to sell consumers merchandise on aesthetics and style recommendations, but on attributes. They would need to know about the benefits of the brand or product (ie, organic, fair trade, etc.) and be aware of the ecological issues that traditional products may be involved in. (For instance, that leather tanning uses harmful chemicals.)
Atmosphere
Oiseau will combine traditional elements used in fashion-forward, contemporary stores, with more organic ones.
45 RPM
Opening Ceremony
Associates would wear current Oiseau merchandise, and likely be given an allowance in which to purchase new clothing.
Pr ice Pricing will be aligned with stores with somewhat similar demographics, especially where they pertain to fashion-conscious, relatively affluent, Generation Y consumers. Essentially, Oiseau will seek to replace items that would normally be offered to this consumer with eco-friendly ones. The store will focus on products in the contemporary price point.
Azalea vs. Oiseau
Azalea:
7 For All Mankind Vince Acne Shakuhachi Cheap Monday
$190 $128 $359 $125 $170
Oiseau:
Loomstate Alt. Earth Edun Edun Prairie Underground
$158 $25 $165 $ 145 $265
Placement Oiseau is a brick-and-mortar retail store. There are no plans for a warehouse-type facility, therefore if an e-commerce site existed, merchandise would come directly from the store itself.
Oiseau will utilize a traditional marketing channel, as merchandise will be purchased from third-party vendors.
⇒ ⇒ ⇒
The intermediaries used would be company sales representatives for the selected brands. The biggest challenge Oiseau will face is having to research companies beforehand to ensure that they are truly eco=friendly and have a positive reputation, Merchandise will be purchased via fashion trade show (such as Magic in Las Vegas), from company show-rooms, or from lookbooks.
There is no need to deal directly with vendors in this situation, as details such shipping and distribution will be contracted from the wholesaler. More that likely, this detail will not even be discussed. Only ship dates and lead times will be negotiated. The shipping costs that Oiseau will incur will likely be from the distribution center to the store, as freight costs will likely be included in the garments’ wholesale price.
Promot ion Oiseau seeks to take advantage of the natural foot-traffic in the area. Again, there are stores in this location that already cater to either consumers interested in eco-friendly products, or women in a similar demographic.
Media: advertisements would be places in local magazines or publication such as Soma or 7x7
Packaging: a reusable shopping bag would be given to the consumer to strengthen the idea of sustainability
Sales Promotion: associated would be required to be well informed of product attributes as well as industry details such as why organic cotton is superior, etc.
Point of Purchase: the store will carry books and publications that inform customers about the eco-friendly lifestyle
Direct Marketing: the store will utilize social networking sites such as Twitter and Facebook to inform consumers about new merchandise, trends, sales, events, etc. Emails could also be sent to consumers on a mailing list.
Special Events: many boutiques host special nights where a designer or person of interest in present. Oiseau will utilize this tactic in an effort to gain interest for the store and to draw in new consumers.
In addition, Oiseau will likely be present at events that concern fashion or a sustainable lifestyle. For instance, Ethical Fashion Night just took place in San Francisco. This would have been an ideal event for the store to be present at.
Producer Wholesaler Retailer Consumer
Sources “47% of Gen Y Would Pay More For Green Brands.” Environmental Leader. 14 September 2007.
<http://www.environmentalleader.com/2007/09/14/47-of-gen-y-would-pay-more-for-green-brands/>
Alternative Apparel. “About Alternative.” <http://www.alternativeapparel.com/About-Alternative/>.
Consumer Trend News. Alternative Apparel. Youtube. Deloitte. 2009 Industry Outlook: Challenging Times, Emerging Opportunities.<http://www.deloitte.com/-
assets/DcomUnitedStates/Local%20Assets/Documents/us_industryoutlook_ChallengingTimesEmergingOpportunities_February2009.pdf>.
Edun. “About Edun.” <http://www.edunonline.com/about.aspx>. Loomstate. “About Loomstate.” <http://www.loomstate.org/about/>.
Prairie Underground.“About Us.” <http://www.prairieunderground.com/aboutUs.html>. Mahoney, Sarah. “Gen Y Demands It: Green Fashion That’s Chic.” Marketing Daily. 7 April
2008. <http://www.mediapost.com/publications/fa=Articles.showArticle&art_aid=80029>.
Oakes, Summer Rayne. Style, Naturally. Page 20. 2009 Chronicle Books.
San Francisco County, California. <http://quickfacts.census.gov/qfd/states/06/06075.html>.
San Francisco Demographics. <http://www.zillow.com/local-info/CA-San-Francisco-
people/r_20330/>.