Slide 1

Slide 2 Slide 3 VERTICAL INTEGRATION BRIAN WINSTON WINSTON COLLECTIVE PRESENTED AT SCAD May 27 th, 2014 Slide 4 BIO 33 Years of Industry Experience Retail- Specialty Department Store (Sales, Floor Management, Buyer, Divisional) Wholesale- Manufacturing base in Montreal, Toronto, Italy, and Asia- Showrooms in New York and Toronto Brand Development & Consulting Launches and projects Representation Business (15 Collections, North America: New York and Toronto) Sn.Canadian Apparel Expert)- Columbia, Peru, Bolivia and Equador- Development of Product, Packaging, Sales, Branding and Logistics Slide 5 WHAT IS VERTICAL INTEGRATION? Vertical Integration is a style of management control that combines the various stages of business into one supply chain. This supply chain would encompass such different stages as : production, design, warehousing, distribution, logistics and the final sale of the goods to the consumer. The results of this generally lead to reduced operational costs, faster and more efficient ways of doing business and in the garment world- getting the product to the next step in the supply chain. Slide 6 THE FORMULA Extensive market research through tradeshows, e marketing and fashion shows. (Constantly Evolving) Not limited by age or demographics Key audience (Young educated fashion focus- high degree of trend involved) Constant flow of goods as opposed to stop/start in traditional market. Functions- closely linked geographically (Cost Savings) Tight Control (Financial) Greater Demand due to Limited Production Bigger Sales Quick Response/Turn around, Strong Merchandising Communication (Info Technology and Human Resources), Sales Analysis, Product Life Cycles Large Up Front Capital Intensive Good Credit Status because of competitive advantage Slide 7 UNDERSTANDING A COMPANYS BRAND DNA of Brand History -Unique Selling Proposition -Quality -Differentiation from Competition -Styling -Prices -Marketing -Environmentally Conscious -Social Responsibility Slide 8 BUSINESS PLAN Slide 9 FINANCIAL INFORMATION How will Vertical Integration help company cut cost? Existing Financial Snapshot Discussion with Senior Management (CEO, CFO and COO) Projected Goals (Financial, Branding, Merchandising) Market Research Development of Plan and Related Cost Options Consultation with Strategic Partners (Real Estate, Architectural & Store Planning, Contractures, HR) Realistic Revenue Plan/Stream Slide 10 PRODUCTION CHART Slide 11 LOCATION, LOCATION, LOCATION! Market Research Traffic/ Foot traffic Flow Location Appropriateness/Customer Base Neighbors- Traffic drivers Most Cost Efficient use of space (Size of Store) Warehousing could be in less expensive location Matches need and price budget Negotiation of Lease (Flat, Percentage, & Combo) Slide 12 NEW YORK- MADISON AVE TORONTO- YORKVILLE LONDON- BOND STREET PARIS- CHAMP ELYSEES Slide 13 LOCATION FOUND! Hire Architectural/Store Planner Work with Merchandising and Visual Teams Retail Construction (Fixtures) Planning/Building Visual Brand Awareness Senior Executive Input Final Costing and Plan Approval of Landlord Slide 14 HUMAN RESOURCES Find Qualified Staff with prior experience/clientele in the field Full Understanding the Brand DNA Ambassadors of the Brand- Projecting the ideal image where possible. Further Training/Education of Staff ( Comprehensive and Knowledgeable) Proper Management in Place Slide 15 PRODUCT MARKETING Merchandising and Visuals Research to what the market demands and requires-Price to Value Equation Plan to produce product within a certain price, quality and stylistic niche- Global Ethics -Sustainability Merchandising Plan- same format in all stores, color presentation ( same T in all colors) - Joe Fresh what makes a difference Image to the World- magazines, e advertising, radio, in store displays and attention, TV, etc. We live in a world of information overload Visual Display becomes important and make a major impact at the store level. An original and thought provoking Display Director ( Simon Doonan Barneys)- Experiential Marketing- the actual experience of purchase- immediate appeal-Apple Store- Packaging (Further Advertising)- and Brand Awareness especially if it is able to be reused continuously- Slide 16 BARNEYS NEW YORK- SIMON DOONAN Slide 17 PACKAGING Slide 18 PUBLIC RELATIONS/BRAND DEVELOPMENT Discussions regarding Public Figure Endorsements- Sports/Theatre/Film/Political Figures and their immediate families Charitable Link Ins- introducing the brand to and through a group of people who are doing charitable work PR Professionals- who are connected to media, high society types and through the use of connections start to build the brand Media Campaigns- go after the niche and next tier of the media to obtain FREE exposure Referral reward existing customers for introducing the brand to their friends and family. Hence F/F Days at many of the large stores. Social Media- Linkedin, Twitter, Facebook, Pinterest, Instagram, Google Plus Slide 19 PUBLIC FIGURE ENDORSEMENT Kate Husdon Tom Brady Beyonc Slide 20 CUSTOMER BUYING EXPERIENCE Practical versus Emotional Shopping Patterns. Men are more driven to need and women more to emotion What speaks to me/reaches out to me ? Events- Scene- Fashion Shows-Film Festival Designer, World Wide Brand Designer- An event to be seen at and with whom. FUN: Party Events- always looking for the next betterment Great Value Environmentally friendly Slide 21 CUSTOMER GRATIFICATION Will customer come back? Customer Service ( CRM ) and What is too much and what is relevant in todays market. Continuing to develop product lines- customers need to be wooed back with new arrivals, something that reaches to them that they must have something new. Feedback through online surveys What can we do better? One happy customer tells 2 people and one unhappy person tells 10 people. Stuff happens in large organizations- the key is how it is handled and how the customers becomes re enchanted with the brand. Crisis management. Slide 22 CLIENT QUALIFIED Ability to Finance Operations Organized Business Infrastructure Slide 23 CASE STUDY: COLOMBO Slide 24 ITALIAN ELLE COVER- COLOMBO Slide 25 MANUFACTURING PROCESS Raw Cashmere arriving into factory Slide 26 MANUFACTURING PROCESS Raw Cashmere is checked and Brushed For imperfection Slide 27 MANUFACTURING PROCESS Raw Cashmere is checked and brushed for imperfection with prickly branches Slide 28 MANUFACTURING PROCESS Discarded fluff from cashmere Cleaning- packed and sent to Lands End Slide 29 MANUFACTURING PROCESS Testing Strength of Yarn Slide 30 MANUFACTURING PROCESS Microscopic Inspection of Yarn Slide 31 MANUFACTURING PROCESS Samples allotment of Yarns Slide 32 MANUFACTURING PROCESS Spinning of Yarn into Cashmere Cones Slide 33 MANUFACTURING PROCESS Finished Cashmere Cones Slide 34 Washing of Cashmere Cones MANUFACTURING PROCESS Slide 35 Color dyeing of yarn- up to 330 pantone colors Slide 36 MANUFACTURING PROCESS Color dyeing process Slide 37 MANUFACTURING PROCESS Color dyeing process Slide 38 MANUFACTURING PROCESS Test dips Slide 39 MANUFACTURING PROCESS Storage of test dips Fabric Samples Slide 40 MANUFACTURING PROCESS Cones being Set-up for Fabric Weaving Slide 41 MANUFACTURING PROCESS Fabric Weaving with Cones Slide 42 MANUFACTURING PROCESS Continuing of Fabric Weaving Slide 43 MANUFACTURING PROCESS Continuing of Fabric Weaving Slide 44 MANUFACTURING PROCESS Rolled and put into bolts Slide 45 Greige Fabric in Storage MANUFACTURING PROCESS Slide 46 Finish Roll of black cashmere Slide 47 MANUFACTURING PROCESS Specific type of confirmed order for customer- Stripe Slide 48 MANUFACTURING PROCESS Outsourcing for major designers of the world- Contract Negotiations for Hermes. Slide 49 MANUFACTURING PROCESS Finished scarves for major designers Slide 50 Individual booth Slide 51 Aerial View Slide 52 Selection of Fabric Slide 53 Famous Designers Shop PV for Fabrics and Inspiration- Michael Kors Slide 54 Slide 55 Famous Designers Shop PV for Fabrics and Inspiration- Valentino Slide 56 Slide 57 Famous Designers Shop PV for Fabrics and Inspiration- Giorgio Armami Slide 58 Slide 59 Famous Designers Shop PV for Fabrics and Inspiration- Rei Kawakubo Slide 60 Multilevel Fashion Retail Store Slide 61 Famous Designers Shop PV for Fabrics and Inspiration- Dsquared2-the Famous Canadian Twins Slide 62 Slide 63 RETAIL STORES Flagship: Milano Boutiques: Austria- Vienna Italy- Roma, Porto Cervo, Bergamo France- St. Tropez, Paris Korea- Seoul, Daegu, Busan In-Store Boutique: Barneys New York Slide 64 COLOMBO KOREA Store Format- In Mall Slide 65 LUXURY BY DISPLAYS 100% Vicuna- Coat with Sable Collar ($35,000 USD)- Sold 5 in the US last year. New York, BeverlyHills Slide 66 MERCHANDISE PRESENTATION BY COLOR Slide 67 COLOMBO- ST. TROPEZ Slide 68 IN-STORE PRESENTATION Slide 69 COLOMBO MILANO Slide 70 Slide 71 THANK YOU!