Anna LoweNew Business Award

Fashion Buying & Brand Management

Ravensbourne

CONCEPT

The proposed business concept is for the luxury, multibrand, UK-based retailer, Browns to launch an archive collection of carefully selected resale pieces. These pieces will be sold in store alongside new-buy products.

With the womenswear market continuing to grow at a steady pace and the luxury market forecasted to grow at an even faster rate (Mintel, 2017), it is advisable for Browns to be innovative with their business strategy in order to remain as a market leader in the luxury UK market. The concept also embraces the rapidly expanding resale and sustainability markets.

Research has found that consumers in the luxury market are looking for deeper meaning in their products (LSN, 2017). This proposal allows Browns to meet the needs of consumers through offering a highly curated range of rare Archive pieces.

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“We believe that consignment and recommerce can play a significant part in reducing the amount of raw materials that are required each year from our planet. This is key in our commitment to becoming part of a more circular economy. By ensuring that our products are used for the entirety of their life-cycle it is possible to begin to slow down the amount of natural resources currently being cultivated and extracted from the planet for the sake of fashion.” - Stella McCartney (plastic oceans)

The Resale Market

8%

35%

AllApparelResale ResaleDisruptors

ResaleMarketGrowth(Thredup)

4x

2%

35%

ApparelRetail ResaleDisruptors

MarketGrowth(Thredup)

20x

49%

10%

11%

14%

16%

ResaleMarketBySegment(ThredUp)

Clothing,Shoes,Accessories Electronics Media Books OtherThe resale market is outpacing the general apparel market, growing four times faster (ThredUp).

Resale disruptors, (companies such as ThredUp and The RealReal) are growing 20 times faster than the general resale market (ThredUp)

The resale market is currently a thriving market it is expected to grow from $18bn in 2016, to $33bn in 2021 (Luxury Daily, 2017).

Resale gives consumers the opportunity to continuously refresh their wardrobe (BOF, 2017), with some consumers only purchasing once they sell something (RealReal). This method of buying is leading to consumers considering the resale value of items before they purchase (Source).

Business Of Fashion notes that rapid growth in the resale market is due to a range factors including: • The post-recession mindset of consumers

looking to save money• The rise of clutter-free movements (such

as Marie Kondo-Magic of Tidying) and • The rise of influencer and social media

culture leading an increasing demand for outfit changes

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1,130,000 tonnes of clothing

purchased in the UK in 2016 (Wrap)

£140M worth 350,000 tonnes of used clothing goes to landfill in the UK every year

40,000 people a year die

prematurely from air pollution in the UK, 4.2M

globally (LSN, 2017)

3.6M tonnes - the amount of clothing in active use in the UK 2016

92% of people now live in locations where air pollution exceeds safe

limits(LSN, 2017)

£4 trillion the cost of air pollution in terms of welfare and lost labour in 2013 (LSN, 2017)

The Sustainability Market

1,030,000

950,000

1,080,000

1,130,000

850,000

900,000

950,000

1,000,000

1,050,000

1,100,000

1,150,000

2010 2012 2014 2016

TotalClothingConsumptionInTheUK(WRAP)

Tonnes

62

102

2015 2030

ProjectsGlobalFashionConsumption(CopenhagenFashionSummit,)

‘Extending the life of clothing by an extra nine months of active use would reduce carbon, waste and water footprints by around 20-30% each and cut resource costs by 20% (£5 billion).’(LSN, 2017)

Information from a wide range of sources shows that the fashion industry is having a detrimental impact on our environment and resources. It is considered well known that the production of fashion garments contributes to the pollution of the environment, examples of this include: chemicals and dyes polluting water ways, cotton farming depleting water resources, air pollution from factories and the list continues(racked?). Not only does production have a negative environmental impact, but there are also ethical issues, many brands outsource production, it has been documented that workers are often underpaid and are subject to poor working conditions (SOURCE)

Fashion production cannot be solely responsible for the industry’s negative environmental impact. Fashion consumption plays an extremely large role in the pollution of our environment. The statistics, right, show examples of the large amount of clothing that is purchased every year and then ends up in landfill (WRAP), causing damage to the surrounding and global environment (source).

The growth in global fashion consumption is projected to grow from 62 million tonnes in 2015, to 102 million tonnes in 2030.

62

102

2015 2030

ProjectsGlobalFashionConsumption(CopenhagenFashionSummit,)

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With the recent passing of renowned designer Azzedine Alaia, luxury consumers may want to pay homage to the late designer through recreating his iconic looks like the one seen in the image, far right. The dress in this picture can be found on Vestiare where it sold for £2,851.84. The bag, right, is another example of a product Browns would potential sell - a rare, transparent Hermes bag. Both products would not be out of place amongst current collections in Browns today and offer a rarity that ready-to-wear cannot.

Product/Service Proposition

The product/service proposal for Browns is to offer a highly refined, curated collection of rare luxury products. These products will be carefully sourced to meet the latest trends.

Similarly to the VIP shopping service Browns already offers, the VIP service will also apply to the resale collection where personal shoppers will help to source rare and one-of-a-kind products for clients.

Alaia current collection dress found on Net-a-Porter for £2,190

Alaia vintage dress found on Net-a-Porter for £2,851.84 - sold

William Vintage

Browns£20 £14,580

Ebay£0.01 £18,750

Resee£50 £6,900

£145 £41,000

Vestiaire£8.76 £100,000

Browns Archive £725 £4,850

The above price band matrix shows the entry and exit price points for the new Archive concept and it’s resale competitors. All price ranges represent womenswear clothing, footwear and accessories.

The Archive collection has the smallest price range of all competitors. This gives the collection a very clear place in the market, unlike other resale brands such as Ebay and Vestiaire that cater to every price range, which results in some products being of low quality/desirability.

Price

PlaceThe archive collection will initially be launched in store only so that Browns offers a unique in-store experience to it’s customers. If the archive collection becomes highly successful, further investment can be made to expand the collection to be offered online as well.

The archive collection will be divided so that it is featured in both Browns stores (South Molton Street and Browns East). The deciding factors for which products will be allocated where will include looking at the current/forecasted new-buy product offering in each of the stores as well as a general consideration for the location and the typical consumer shopping in each store.

People

“Shoppers, especially younger ones, aren’t as driven by the latest trends, and are more interested in honing their unique, personal style. The idea of what true value is to shoppers is changing. It’s not necessarily something that is new or in perfect condition, but something that satisfies their needs.” (Drapers, 2017)

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0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 65-64 65+

TrendsInTheUKAgeStructure2011-2021(Mintel,2017)

2011 2016 (Proj) 2021(Proj)

35% of female shoppers want to see higher quality clothing at the retailers they usually shop with (Mintel, 2017)

More than 9 in 10 Millennials would switch brands to one associated with a cause, emphasising the importance of communicating brand ethics to consumers (LSN, 2017)

Secondary Consumer Demographics

Millennials are 2.4x more likely to be motivated by eco-conscious factors when shopping secondhand (ThredUp)

Millennials are 75% more likely to be motivated by the environment when shopping (ThredUp)

30% of consumers 18-24 have shopped secondhand in the past 12 months (ThredUp)

21% of consumers 18-24 say they will shop second hand in the future

‘More than half of luxury consumers think that products with a typically lower price point enables them to buy into luxury brands they otherwise would not be able to afford’ (Mintel, 2017)

‘Sustainability has now got stylish and affordable. There are signs that people are buying less but buying better - Mintel found this was true for 69% of women aged 25-44’ (Mintel)

Young consumers are a key demographic for the retail market as they hold a large share of the total population. With female shoppers looking for higher quality clothing (Mintel, 2017) and the number of High Networth Individuals Rising (fashionista,) this is promising for the luxury market as there will be more affluent shoppers seeking higher quality items. There is a large remand for sustainability from younger consumers which is promising for the resale market which extends the life cycle of products.

Back, and better than everThe Archive collection has landed. Alaia, Versace, Miyake - get it whilst you can...

Future Website Homepage

Promotion

Instagram Mock Up

The concept will be heavily promoted through visual mediums such as the existing Browns website and the brand’s Instagram page. The above example shows a mock up of the company website promoting the new concept, the branding remains in line with Browns modern, clean, 2015 rebranding aesthetic. The collection will also be featured on the company Instagram page, an example can be seen on the right showing how the company will simultaneously promote Archive and New-Buy pieces to give innovative and inspiring content.

The new Archive collection will utilise an exclusive logo (seen bottom right) for product swing tags and other relevant media.

Persuasion

Browns has a strong history, known as one of the first multibrand fashion stores in London. Opened in 1970 by Joan Burstein and her husband Sidney, the company has now been running for over 40 years and is still as fashion forward as ever.

Thanks to Mrs Burstein introduced many brands to the UK fashion scene including Calvin Klein, Jil Sander and Comme Des Garcons as well as discovering ‘home grown talents such as Alexander McQueen and John Galliano, ‘championing them in a way that no one else could and flying the flag for fashions new spirit of individuality which is a flag that’s been flying ever since.’ (Browns, 2018)

Browns is incredibly proud of its heritage and reputation for introducing new designers to the UK fashion market and now it’s time for the company to pay homage to it’s reputation with the launch of it’s exclusive archive collection, once again championing the industry’s most creative talents and iconic designs.

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The Ansoff matrix highlights why the new concept for Browns will be a success. The main reason is that the concept offers new products that are more unique and exclusive than those readily available in the current luxury department store market. These new products will appeal to existing customers shopping in the luxury market and new customers who shop in the sustainability and resale market.

Why will the proposal be successful?

Existing

New

Exis

ting

NewProducts

Mar

kets

• Launching in store events which will to increase footfall and give customers an experience

• Increasing marketing and social media promotions to raise consumer awareness

• The proposal will continue to offer pieces that are luxury, branded and fashion forward, as is currently stocked by Browns. This similar product essence will help appeal to existing customers

• Customers who are currently loyal to certain designers stocked by Browns may be interested in the new resale pieces of those same designers. This will help the new products appeal to the existing customer

• Various brands and styles of resale products can be added to the collection to appeal to all current consumers

• The proposal appeals will appeal to a more sustainable consumer who would like to extend product life cycles

• The proposal appeals to consumers who are looking for vintage/rare/exclusive products

• The proposal appeals to young consumers shopping in the resale/hype market that pursue unique products

• New resale collections will draw in consumers who previously may not have shopped at Browns before but have shopped in the luxury resale market elsewhere

• The new collection may also appeal to customers who have shopped luxury, but may have never considered shopping in the resale market before

Diversification

Product development strategy

Market development strategy

Market penetration strategy

Topline Table

The above chart shows a topline table forecasting the predicted expenditures for the new Browns Archive collection. The figures have been based solely of the Archive concept, ignoring the current sales turnover and expenditures of the company.

Year 1: The plan for the first year is to generate a profit, selling the first 34 piece collection and then purchasing and selling the second collection at the same rate.

Year 3: By year 3 the popularity and demand amongst Browns consumers will have grown and the Archive collection will be expanding by twice the size. This will either be through more frequent product drops or a larger product offering in store.

Year 5: By year 5 the range has continued to grow and with further investment the Archive collection will be able to launch online and reach a wider range of consumers. This will enable Browns compete with other big resale players such as Vestiaire, Resee and William Vintage.

Investment: An initial £60k investment is needed to launch the concept. This figure accounts for £18k initial buy cost for the collection, £34k salary for one full time Buying/Sourcing staff member, £6k for promotion and packaging and £4,000 for any repairs and processing required for the products.

SWOT Analysis of Proposal

Strengths

Opportunities

Threats

Weaknesses

S

W

O

T

• Capitalises on the rapidly growing resale and sustainability markets

• Unique, high quality product offering, catering to the changing consumer needs and values

• Generates profit after the second month in business, low financial risk

• Strengthens brands reputation as an innovator

• Collection performance cannot be guaranteed which means that Browns could be at a financial/repuational loss if the range does not sell.

• Unlike new-buy, repeat orders are not possible. If sock sells faster than expected, sourcing of equally desirable products may take longer than is ideal.

• Browns has the opportunity as an existing brand to break into new markets such as the resale and sustainability markets which will broaden the brands’ reach.

• Although the concept is based on old products, embracing the resale market while it’s still in it’s early growth stags can help Browns to reaffirm it’s identity as an innovator amongst it’s competitors.

• The largest threat is that the range does not sell once it launches in store, causing a loss for the business. In order to avoid this, careful range planning and promotion must be carried out to drive demand amongst consumers.

• Another threat is that it will take time to establish how to drive the Archive collection to meet the needs of the Browns consumer in terms of which and how many products to buy.