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Savannah College of Art and Design LXFM 745 Prof. Alessandro Cannata Project by: Bhavya Garkemukhu Feifan Tan Malia Sharpe Sandy Deng


Executive Summary

Loewe has over one hundred and fifty years of experience as an international Brand in the leather goods and luxury accessories market. The combination of cutting edge designs, accurate selection of raw materials and handmade finished collections - particularly leather products - are the ingredients which have made Loewe one of the icons in the Spanish fashion landscape. Today Loewe operates in 35 countries and has also established a strong presence in Asia. Markets like Japan are attracted to Loewe's quality and unique product range. Part of the LVMH Group, the company is vertically integrated from design to production, right through to the retail network. a business model which requires strong product branding and management capabilities Fashion houses are emphasizing interior design and customer experience more and more, and Loewe's emphasis is on pushing the trend even further by expanding the brand's new flagship in Guangzhou, China. With only 150 stores all around the globe and China's growth since 2009, Guangzhou will certainly be one of the most important markets for Loewe. A vital tool for fashion firms these days is a good globe. For Loewe looking to grow their businesses in a difficult environment, exploring untapped markets from Beijing to Brazil is the key strategy for long-term expansion. By opening this flagship store in China, the brand is seeking to expand their global reach by tapping into emerging markets and balancing their business.


Brand Analysis

Market Analysis

Location, Design & Product

Implementation


BRAND ANALYSIS


Brand Overview Currently, Loewe specializes in Home Goods and Leathers, specifically bags and clothing for women. The brand currently is owned by the conglomerate LVMH, who acquired the brand in 1996, after 150 years of already being established. In an average year, the brand’s revenue is $327.9 million dollars. Loewe is presumed to have substantial growth per year, but the company’s individual exact figures are not made public by the conglomerate. In future years, the brand is expected to have positive growth under creative director J.W. Anderson; who changed the direction of the company in 2014 to be more representative of its new target customer base and market.


Sales Due to the continuous growth seen throughout 2017, LVMH posted an impressive 13 percent growth in sales in the first quarter of 2018. LVMH does not report individual sales numbers for its various brands, which include: Louis Vuitton, Christian Dior, Fendi, Loewe, Givenchy, Guerlain, Hennessy, etc. However, this performance was driven by the very solid momentum achieved by Louis Vuitton, as well as Loewe, Kenzo, Fendi, Berluti and Loro Piana

Currently, the luxury fashion and leather goods department has seen a growth of 25 percent. But, according to a Boston Consulting Group study, the luxury industry only generates 7 % of Luxury sales online, a number that should at least triple by 2025.

Current Distribution


Number of Doors (LVMH)


Number of Doors (Loewe)

Volume of sales in Fashion & Leather Goods (LVMH)

Loewe opened its first store abroad in 1963, in London. Then followed Hong Kong and Tokyo in the 70s. In 1985, Loewe reached an international distribution agreement with LVMH. Global expansion was promoted after Loewe was acquired by group LVMH (1996). It currently counts with stores in Hong Kong (8), Guam (3), Australia (3), Canada (1), China (16), Germany (1), France (3), Finland (1), Colombia (1).


French luxury group LVMH has devised a web shop called 24Sevres.com, that will focus on its own luxury brands and leave a space for other brands as well. The web shop has a lot of famous brands along with their own. (Vuitton, Dior, CĂŠline, Givenchy, Loewe and Moynat)

One of the fashion world’s top performers on both SEO (Search engine optimization) and SEM (Search engine marketing), the whimsical brand supplements reach with investments in mobile display advertising. Loewe has demonstrated incremental improvements on its desktop and mobile site, especially on the store locator and product pages.

Loewe has chosen social media as the best channel to access their desired new target market; to show them products that match with their fashion demands and to persuade them that Loewe is a brand that is incarnate their values. When analyzing the campaign activities of all the social media networks combined, the three most active brands that had the highest number of actions in which Loewe with 37 actions, Gucci with 43 actions and Mulberry with 40 actions.

Apart from these, Loewe is a global relevant brand with an ongoing internationalization strategy and it continues to develop with new stores openings in Madrid.

Distribution Channels/Models


Flagship Store in Madrid Casa Loewe was built in 2017 in Madrid as a new flagship store. The new Casa Loewe Madrid is reminiscent of an avid collector’s apartment and a myriad of natural Spanish materials, from the spectacular central staircase made of Campaspero stone to the Valencian clay floors below, all imbue the interior with provenance.

Retail Brand Identity Analysis

Temporary Shop The temporary summer shop opened in Ibiza. As in past years, the pop-up store is located at the Ibiza Museum of Contemporary Art, MACE. The summer shop will carry LOEWE's successful Paula's Ibiza line, now in its second year, encompassing ready-to-wear, shoes and accessories featuring a variety of colorful prints, as well as LOEWE's new range of sunglasses, and of course the house's desirable leather items including handbags, wallets and backpacks for men and women.

Flagship Store in Miami Opened in 2015, the Miami store plays host to Chance Encounters, the Loewe Foundation’s annual gallery project. It opens each year during Art Basel and runs for several months. Curated by creative director Jonathan Anderson, the series celebrates the dynamic that blossoms from the intentional juxtaposition of designer goods and art media—you can look at art and shop at the same time.

Pop-Up Store in SKP Beijing In April 2016, Loewe opened pop-up store in SKP Beijing. The store displayed the women’s wear of the collection of 2016 S/S. In 2017, the setting was more artistic than 2016 and the opening of pop-up store invited several celebrities. In 2018, the theme was Paul’s Ibiza and the location was the atrium of the first floor. Many celebrities came to the opening. Loewe also held a party at night for the opening.


People The company’s primary focus is in leather products. The main items produced and sold by Loewe is bags for men and women. The company also sells other luxury fashion items such as ready-to-wear clothes, fragrances, accessories, and home and lifestyle products such as towels, journals, wallets, key-rings, and even beach paddles. The puzzle bag and hammock bag are their most popular and sought after items. In recent years, Loewe launched their animal bag, in elephant and bunny shapes, that brought joy and fun into the brand. In 2018, the gate bag became the most popular bag choice of Loewe consumers.

Products

Jonathan Anderson was born in Ireland and is the founder of JW Anderson. He completed a degree in menswear design at the London College of Fashion, and subsequently has made a name for himself in the fashion world.. He has made waves with his gender-bending work for his label and was named the new creative director of LOEWE in 2013. The unwavering spirit of innovation and rebellion within him, brings Loewe a new energy.


Promotional Activities

Loewe’s projects reflect the experimental spirit that has driven Loewe from the start; reconfiguring traditional codes of craftsmanship, and setting new creative standards for the future. Loewe also developed a series of collaborations showcasing the work of artists and artisans Loewe believes in, such as The John Allen special collection of accessories launched in 2016, and the Ouka Leele Limited Edition launched in 2017. In 2016, reasserting the house’s long-standing commitment to creative excellence, the Loewe Foundation created the Loewe Craft Prize; a new prize recognizing outstanding achievements in craftsmanship. The award’s objective is to highlight innovation and artistic merit in modern craftsmanship.


Competitive Analysis Loewe is a luxury brand from Spain, that has its focus on leather goods and haute couture. It was acquired by LVMH Group in 1996. In conjunction with other brands, they are expanding their product offerings outside the realms of leather goods and clothing to sunglasses, perfumes and bag charms. The price of handbag is mainly concentrated at about 2,000 USD - 2,500 USD, and the price of the high-end collections’ handbag are higher. Jewelry items are also about 200 USD - 500 USD.

What is the level of Loewe in Luxury Market?


Perceptual Maps


Perceptual Maps


Competitor Case Study (Gucci vs Loewe)

After Gucci hired Tom Ford in 1995, Tom Ford denied Gucci's original market positioning, replacing it with decadence and sensibility, and craftsmanship for every product line of Gucci from ready-to-wear, handbags, perfumes and packaging. In addition, he redesigned Gucci's advertising ,in-store decor, and cleverly used digital media reignited Gucci's attention. Though Loewe lacked in keeping up with it in the beginning, with Jonathan Anderson's arrival in 2013, the brand's exposure has increased significantly with revamped visual identities, store operations and brand building. His products reflected Modernity which in turn re-engaged customers in the brand. He expanded the influence of his brand in Japan and Spain with the help of various exhibitions in collaboration with J.W.Anderson. In order to enter the Chinese market, Loewe cooperated with Alibaba in 2017. Tmall announced the official launch of the luxury flash shop Tmall Space, the first cooperation with LVMH. China’s online market share of luxury goods is increasing year by year and is expected to reach 13% by 2021. According to the report, in the eyes of consumers, luxury consumption no longer stays at LV, Gucci and Hermes. Loewe as a fresh blood to the Chinese market, and Alibaba’s cooperation in launching its own products can better publicize and increase the exposure, thus speeding up the recognition and acceptance by Chinese customers.


Differential Advantages

Strategic Planning Process

● The combination of cutting edge designs, accurate selection of raw materials and handmade finished collections - particularly leather products - are the ingredients which have made Loewe one of the icons in the Spanish fashion landscape ● Historical positioning of the parent company ● Loewe is the only brand in the group with a clear Made in Spain profile ● Involves their online customers in a ritual ● Controversy is their way to reach desired target outside the circle of current Loewe brand lovers.


● An established heritage company with over 170 years of making leather goods ● A loyal customer base, especially in Spain, where the company is based ● Consistent demand for their unique leather goods designs, especially their puzzle bag ● Quality of product offerings ● Superb customer service ● Unique offerings and gender neutral clothing options

● They can expand into markets that are saturated with the big names in luxury goods such as Louis Vuitton and Chanel ● Loewe can create a classic piece that is “brand defining” for them ● Loewe is able to expand on their luxury customer base

● Low customer engagement on their digital platforms, specifically instagram where the ideal target market gets information about luxury goods. (millennials) ● Not as well known as other luxury brands ● Niche customer base of wealthy people looking for obscure luxury brands; no current mass appeal ● Large parts of the global market where Loewe is not present

● The luxury market has many existing players that produce the same goods as Loewe, even within LVMH, their ownership company ● The rise of social media and technology, within the realms of buying luxury, could push their niche clientele to other luxury brands


Mission Statement “Loewe strives for the expansion of our luxury goods through untapped markets, such as Asia and the Middle East, to continue appealing to our niche customer that enjoys non-trendy luxury items.�


MARKET ANALYSIS


A.T.Kearney Metrics

# China The remarkable rise of China’s super cities and how a comprehensive approach to urbanization is paying off in spades for the global powerhouse. China’s key cities have experienced greater progress than cities in the other regions of the world during the 10 years of A.T. Kearney’s Global Cities research. The Global Cities Outlook increased its consideration of Chinese cities, growing from 21 in 2015 to 27 in 2018, outpacing all other regions over the past four years.


Why China? This evolution of China’s cities reflects intentional efforts by national, regional, and local entities to improve the country’s competitiveness. The initiatives have focused on business, governmental, and cultural activities, providing improvements that boost the quality of life for residents, increase the ease of doing business, and attract more investment and attention from global companies. This could be a great opportunity for Loewe to grow their business and enhance their presence among Chinese consumers as well.


# United States The scores of the North American cities included in the first Global Cities Index increased by 0.6 percent annually over the past decade. The GCI scores consider factors such as business activity, human capital, information exchange, cultural experience, and political engagement. San Francisco holds on to the top position in the Global Cities Outlook, driven by high-growth companies and strength in innovation.

# Australia

The theoretical “fastest� city, one whose composite score across all Outlook metrics is 100, is composed of nine cities. Melbourne and Sydney claim top spots in three of the 13 metrics. The cities that have climbed the most in the Global Cities Index rankings since last year have made marked improvements in the areas of business activity and information exchange.


Economic

Social

● Stable political environment ● Improved infrastructure ● Great destination for foreign direct investment, making it the third largest FDI destination on the world. ● Good international relations for trade

● 2nd largest economy in the world by nominal GDP ● Made a shift from a centrally-planned to a market-based economy ● GDP growth has averaged nearly 10 percent a year ● Caused challenges like High inequality, rapid urbanisation, and environmental damages ● Availability of cheap labour

● Massive market for consumer products ● Increase in consumer spending ● Citizens longing for status symbols, meaning great opportunities for both domestic and foreign companies. ● Progress in poverty reduction

Technological

Environmental

Legal

PESTEL Analysis

Political

● World’s largest online population with 772 million users ● Vision to be a global leader in science and technology with its ‘mass entrepreneurship and innovation’ programme. ● Aims to move from a labour-intensive economy to an innovation-driven one

● Economic development’s severe impact on its natural environment ● Environmental challenges like water and air pollution, industrial waste, deforestation, climate change, and biodiversity loss

● Laws regulating business and employment practices ● Labour standards, employee remuneration and benefits, labour disputes, and other relevant issues are regulated by The PRC Labour Law 1995, the PRC Labour Contract Law 2007, and various administrative regulations.


Market Analysis of Luxury Leather Goods & Apparel in China


Market Analysis of Luxury Leather Goods & Apparel in China


Luxury Leather Goods Richemont LVMH Kering Prada Hermes PVH Ralph Lauren TOD’s Burberry Heng Long (Distributor)

Luxury Apparel LVMH Kering Puig PVH Burberry Ralph Lauren Hermes Prada Richemont

Indirect Competitors: brand/company’s partnerships with distributors from other places

Key Players


Our target consumer group is located in Guangzhou, China. This major city is located northwest of Hong Kong, and is the third largest city in China.

Target Demographics Gender: Women & Men Age: 21-35 years old Income: $100k + per year, with a substantial amount of disposable income

Target Consumer

Education: Minimum College Graduate. Some with Post-Graduate Degrees


Interests

● Works in a corporate environment or in the fine arts

● Art ● History

● Enjoys traveling to new destinations to learn about different cultures

● Emerging Cultural Trends

● Enjoys going to new museum and art gallery openings

● Traveling ● Culinary Experiences

● Makes a point to visit new restaurants

Work and Leisure Activities


Specific Technology Used ● Thinks that engaging in the Arts is necessary to be a well rounded and informed person

● iPhone ● iPad

● Believes in Equality for All ● Sees the Importance Sustainability ●

● Smart Watch in

● Fitness Tracker

Believes in living a well rounded life, striving for balance between work and leisure

Relevant Opinions and Beliefs


Media Consumed ● Millennials make up 31% of China’s population and are considered to be digital natives ● 92% of internet users in China are Millennials ● 90% of them own a smart phone ● Millennials represent 73% of e-commerce shopping in China ● Most use their smartphones for shopping, ordering food, and completing work related things ● 91% use QQ/WeChat/Weibo for their social communication ● They mostly use their phones for socializing, mobile shopping, mobile video and mobile banking


● Believes in buying classic pieces at high prices (luxury retailers)

Indirect Competition at National Level

● Shops for trendy items at lower priced stores (mid-range retailers) ● Thinks clothing should be sustainable

● The customer is saving for a big purchase

● Prefers to buy luxury products due to its perceived level of quality

● Considers brand image, quality and online feedback to be the main impacting factors on their decision to buy a product

● The customer could go to another luxury chose to have a cultural experience instead (plays, purchase art, go to the opera) ● The customer could take a break from buying luxury items because of a new house purchase or a move

● Leisurely shops every week, but only makes large purchases one to two times a month

● Primarily purchases luxury items for special occasions, holidays and events

● The customer could go on a vacation instead of a luxury bag from Loewe

● The customer is choosing to buy from re-sale sites instead of directly from the brand

Shopping Habits


LOCATION, DESIGN & PRODUCT


Trading Area Analysis

Why Guangzhou? ● Guangzhou is the capital and most populous city of the province of Guangdong ● Located in southern China on the Pearl River about 120 km north-northwest of Hong Kong and 145 km north of Macau ● It has a history of over 2,200 years and was a major terminus of the maritime Silk Road. It continues to serve as a major port and transportation hub today, as well as one of China's three largest cities ● Guangzhou is the main manufacturing hub of the Pearl River Delta, one of Mainland China's leading commercial and manufacturing regions.

Area Factors ● Zhujiang West Road is 1.5 kilometers. ● There are several bus stations and 1 metro station. ● There are many skyscraper towers around the area and many world top enterprises set their offices in there.

Area Attractions ● Tianhe District is one of three national scale central business districts in China. ● There are not only many signature architectural structure, such as the Guangzhou International Finance Centre, Guangzhou Opera House, and Guangdong Museum, but also high-end business districts that enhance the economy, and culture communication. ● The prosperous business districts include Pearl River New Town. ● It contains many high-end shopping destinations like IFC and TaiKoo Hui. ● Beside Pearl River New Town, Zhujiang West Road is a street that includes many luxury brands. ● Luxury hotels like Ritz-Carlton, Hyatt, and Four Seasons are located near Zhujiang North Road. ● The first Loewe store in Guangzhou will fit in this district.


PRIZM

Residents in Tianhe Districts are wealthy, and usually run or own some type of business. Their children have high disposable incomes to spend. Some Millennials have family financial success that allows them to receive their education abroad. According to PRIZM, these types of people fit the description of residents and target customers in Tianhe Districts.

● Upper Crust: The nations most exclusive address. The people who live in Upper Crust are among the wealthiest and their lifestyle matches this. No other segment has a higher concentration of residents earning over $200,000 a year or possessing a postgraduate degree. ● Young Digerati: Young Digerati are the nation's tech-savvy singles and couples living in fashionable neighborhoods on the urban fringe. The people here are affluent, highly educated and ethnically mixed.Young Digerati communities are typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants and all types of bars-from juice to coffee to microbrew. ● Winner's Circle: Winner's Circle is the youngest, a group of mostly 25to 34-year-old couples with large families, in “new-money” subdivisions. Around their homes, are the signs of upscale living recreational parks, golf courses and upscale malls; with a medium range income of nearly $90,000. Winner's Circle residents are big spenders who like to travel, indulge in nice restaurants, shop at high tier and low tier clothing stores and go to shows. ● Money & Brains: The residents of Money & Brains seem to have it all: high incomes, postgraduate degrees and sophisticated taste to match their credentials. Many of the residents are city-dwellers and married couples with few children, who live in fashionable homes.


Competition Estimate ● The potential competition could be the brand competitors that also set their stores in Zhujiang West Road, like Celine ● Customers may also choose to shop in shopping malls instead of walking around the area, especially in summer and winter.

Sales Potential ● The stability of sales would be high because the location is a shopping destination that is surrounded by high-end shops, restaurants, and entertainment ● Opening store in Zhujiang West Road does not only indicate that Loewe belongs to the group of luxury and fashion industry, but also attracts the right customers for the brand who have strong purchasing power.

Product Plan The store will have 70% of the women’s line products and 30% of men’s line products. It will be comprised of 60% of leather goods and 40% clothing due to Loewe’s focus on leather goods from their inception. According to the official website, Loewe produces more clothing than apparel, and therefore the remaining 40% will be divided into 30% clothing and 10% shoes. Loewe’s iconic bags, for example: the Puzzle bag, will have more of an assortment in the men and women’s sections. The store will also include the Gate bag and Animal bag because of its popularity with Chinese celebrities, and its effect on the sale of these bags to the consumers. For the apparel section, simply designed garments are a good choice because they will easily go with other items in the store and are a subtle approach to a new market. We will also include signature logo’d items that are popular among Chinese customers.


Store Layout

Design of Space


Details of Physical Structure ● Loewe's young creative director, Jonathan Anderson, wants it to be more like a living museum than a simple luxury store. ● The entire store is divided into three floors, covering an area of nearly 1,000 square meters. ● In order to emphasize the local attributes of the brand, 80% of the building materials in the store use materials with Guangzhou cultural style. ● Combining Jonathan Anderson's consistent thinking, the brand's past, present and future are presented in one store. ● Guangzhou Pearl River (Zhujiang) New Town is a young and fashionable area where many special and new luxury brands will be stationed here, providing the brand with an excellent platform to promote brand concepts and sell products.

Space Allocation and Productivity ● This flagship store offers a full range of bags and men's and women's ready-to-wear. ● Continuing Loewe’s new simple and modern style, the overall design of this store is also based on simple straight lines with gorgeous details. ● It is also the usual method of J.W.Anderson to use the art works of a little time to enhance the modernity of Loewe's image. ● For the present and the future, Anderson is not satisfied with the design work that is only on the shelf. He will invite several artists to create some works of art for this flagship store. ● Different products will be displayed on each floor, and each floor will feature luxury and unique fitting rooms for the customers.


Fixtures ● The combination of building materials will be understated and elegant: the interlaced use of limestone, silver-gray marble, brass, mirror and wool carpets has doubled the texture of the store, and the ceiling made of green agate stone is unique. ● In order to fit the local history and culture of Guangzhou, the floor will use the unique pattern tiles of Guangzhou to match the ceiling of the green agate stone.

Ambiance ● The atmosphere/ambiance in the flagship store will give an ongoing feeling to customers of being in a modern art gallery. ● It will make everyone feel the sense of integration from brand design and art and the strong impact on the visual. Let customers know more about the brand's unique DNA.

VM and Merchandise Presentation ● JW.Anderson will take photos of the latest collections on Shamian Street (a historical street in Guangzhou). ● This will be a set of 80 photos, used directly for the window display; this kind of reform also exists in stores, which can be seen in the current Loewe window. ● It will be displayed in a large photo poster, a simple merchandise display or a modern art installation, in direct opposition to Loewe’s original window style, that pushed a complex and gorgeous image. ● The sofa, in the flagship store, has a book about the history of Guangzhou (both untranslated original language versions), which seems to present a scene of leisurely reading at home. This is Jonathan Anderson's most unique and compelling stance: stick to low-key.


Window and in-store displays ● The various containers you see in modern and simple cabinets come from the works of Guangzhou ceramic artists.They use a material that looks a bit old to complete a modern look. This new and old fusion is also characteristic of Loewe now. ● A large and unique to Guangzhou’s window painting display, called “Chuang Hua” will be set on the white wall. The bright colored glass is embedded in the thick wooden frame, with dark blue, green, yellow, red and other colors. ● On the other side, the feeling of being in an art gallery is even stronger. The floors and walls were designed to be pure black, and a number of photos taken by Chinese fashion photographers were hung on the wall. In accordance with many exhibitions, a row of seats is placed in front of these photos, allowing people to continue taking in the photos, while resting. ● The concept of the “Living Museum” has indeed been passed on. In addition to shopping, this flagship store will also attract attention from its tea shop in the store and spent tens of RMB, customers can buy a box of exclusive tea pots.

Safety and Security ● As a financial new district and a wealthy residential area, Zhujiang New Town has strict security management. ● The flagship store has a total of three floors, and one or two floors will be equipped with a security guard responsible for in-store security issues. ● The fire protection system in the store will also be strictly designed and equipped in accordance with the requirements of the Guangzhou government and the law.


IMPLEMENTATION


Omnichannel Marketing Plan

#

TMall

Tmall Luxury Online Popup Store LOEWE Chinese Valentine’s Day Bag Global Exclusive and Limited Sale. Tmall announced that the luxury online popup store Tmall Space was officially launched (space.tmall.com), the first to reach exclusive cooperation with LVMH's LOEWE, and a custom designed Tanabata(Chinese Valentine’s Day) Barcelona handbag for the Chinese market will be sold exclusively in the Tmall luxury online popup store, which is the first to be sold on the Chinese tasting line by LOEWE. The physical store under its line is only for display.


# Weibo Tanabata(Chinese Valentine’s Day) Promotion with Chinese Fashion Blogger Mr.Bag Mr. Bag is 25 years old, a well-known fashion blogger in China. He works with almost all the world's top luxury brands. Mr. Bag has been active on social platforms such as Weibo and WeChat. He wrote and photographed bags, shared them with others, and soon got a huge number of followers on social media. Mr.Bag has 3 million fans on Weibo now. Loewe invites Mr. Bag to promote the limited Tanabata Gate handbag on Weibo in this special upcoming festival. Loewe uses Mr. bag's Weibo to channel and connect its online stores for selling this special products.

Tanabata exclusive Mini Gate handbag with Chinese Famous Writer and Film Producer -Jingming Guo On the occasion of the mythical romantic Tanabata, LOEWE China will be the exclusive launch of the new mini-Gate handbags. The Gate handbag design combines craftsmanship with an equestrian-style brass buckle and a unique knot, which is like the fate of a lover, and can't help but be fascinated by this new mini size. On the Tanabata, LOEWE specially invited the famous writer Jingming Guo to create a short poem film of "The Miniature of Love”, and post the short film on Weibo for the brand’s engagement. It is only available in LOEWE's mainland China store, and it adds poetry to Valentine's Day gifts.


#

WeChat

On the occasion of Tanabata, WeChat will join hands with Loewe to launch a special campaign for love confession. With the theme of companionship, eagerness, endless love, good friends and heartbeat, everyone can post their own story about love on their moments, then hashtage #ILOEWEYOU. Tanabata is coming, let us hand in hand only for love, bravely say your affection, and open your heart.

On Tanabata, Loewe will try to sell handbags on WeChat. Enter the brand's official account, click on the red greeting card of the home page, is a monologue video of different stars on love, such as Victoria Song, Quan Yuan, Tao Wang, and appear together in the short film, of course, there are also attractive handbags. After the end of the commercial video, you can make a Valentine's Day confession card yourself, and then share it with your beloved one and pass your heart.


prelaunch

launch

postlaunch

The event will be a party held in the bar of Park Hyatt in Tianhe District where is near the store location. The bar is on the 70th floor that provides the perfect night view of Guangzhou Tower and Pearl River New Town. KOLs and VIPs will be invited to celebrate and enjoy the night. Famous DJs will also be invited to join this event. People who come to the event will get a small Guangzhou-only gift when they do the first purchase in Guangzhou store later.

The launch event will be held in store. There will be drinks and snacks serving in the event. Only half of products will be shown in the store in order to leave bigger space for guests to social networking. Celebrities and KOLs will be invited. Victoria Song (Song Qian): She is Chinese ambassador of Loewe. She is a well-known actress in China. Some of Loewe bags became popular after she carried. Zitao Huang: He is Chinese ambassador of Loewe. He is a famous singer and actor in China. In May of 2018, Loewe collaborated with Zitao Huang and launched a limited edition Goya backpack. Quan Yuan: She is an atress who is active in industry for 20 years. She is known as the image of modern and independent women. Loewe invited her as guest to enjoy many runways. The bags she carried became a topic that people discussed, especially Gate Bag.

The event will be a party held in the bar of Park Hyatt in Tianhe District where is near the store location. The bar is on the 70th floor that provides the perfect night view of Guangzhou Tower and Pearl River New Town. KOLs and VIPs will be invited to celebrate and enjoy the night. Famous DJs will also be invited to join this event. People who come to the event will get a small Guangzhou-only gift when they do the first purchase in Guangzhou store later.


Promotional Activities Loewe aligns themselves directly to art and culture. The elements of the arts, culture, and music will add to the Loewe events. The art museum is not only the place to present brand history and new collection of Loewe, but also the way to spread brand influence to broader target audience in Guangzhou. The launch event in store allows media to report the opening due to the amount of Chinese celebrities attending. The three celebrities that we chose specifically to attend the event, represent different target markets. Victoria Song is the idol of younger generation. Zitao Huang represents males who have attitudes of fashion style. Quan Yuan is more influential to 30-50 modern women. However, all three of them all wear Loewe products and bring Loewe to the Chinese consumers. The perfect night view of Guangzhou indicates the fact that Loewe is finally coming to this city. KOLs and VIPs in Loewe’s system will be invited to have fun together and post the night on social media. The Guangzhou-only gift will encourage them to purchase in Guangzhou store, while giving the allure of exclusivity.


Financial Plan


Financial Plan Overview The Loewe company is projected to have a $327m revenue per year. If you divide the revenue between the 239 stores within the Loewe company, the amount comes out to $1,368,200 revenue per Loewe store; with revenue increasing or decreasing depending on the traffic per location. Based on the average amount of revenue per location, I presumed that it would take the total three years to reach that revenue level with a new store. The company will have a trajectory of increased revenue, over the next three years, with the final year reaching the baseline revenue amount of $1,368,200 dollars per year. The COGS for each year will increase according to the amount of sales of the store, and the need for more product, increasing the freight, packaging and product purchases (product cost for production and materials). The companies Advertising will be increased for the first year, but will decrease for subsequent years due to more people in the area knowing about the store. In terms of other operating expenses, the more revenue the store brings in, the more expensive those will be. In terms of Accounting and Legal expenses, it will increase of the three years due to the increased volumes of sales. The Insurance for the store will remain at a fixed price throughout the three years. The Human Resources and Store expenses will steadily increase during the next two years after the opening. Meals and Entertainment and Gifting and Publicity expenses will decrease after the first year after a steady customer base is achieved. For wages, the average Chinese salary is $9,824.00 dollars per year, based on this information, we project that Loewe will have about 6 employees in the Guangzhou store. This will be the base amount of employees, and as the store progresses over the next two years, their salaries will go up for the existing employees, based on sales. The Net Earnings in the first year will at a loss due to all of the things needed to get the store up and running. During the second year, there will be an increase of net earnings of 19.3% and in 2020, the net earnings will increase to 58% of the gross profit.


Works Cited


Works Cited


Works Cited

Profile for bhavya garkemukhu

Loewe Flagship store in China - Process Book  

Fashion houses are emphasizing interior design and customer experience more and more, and Loewe's emphasis is on pushing the trend even furt...

Loewe Flagship store in China - Process Book  

Fashion houses are emphasizing interior design and customer experience more and more, and Loewe's emphasis is on pushing the trend even furt...

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