Senior Capstone

Maison | Margiela

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Capstone Introduction This capstone will outline a detailed initiative of a Maison Margiela flagship boutique opening

in Hong Kong, China March 8th, 2017 during Paris Fashion Week. The concept behind the proposed project derived from my main goal of reestablishing Hong Kong as a luxury fashion destination with Maison Margiela being the ideal brand in mind because of their immaculate fashion presence; along with the many nods John Galliano has made in his collections in reference to Chinese culture, highlighting its’ complex beauty.

Hong Kong currently has one major shopping hub, located in Central, but the location is flustered with luxury brands crowding the consumers mind and severely overwhelming the shopper. Therefore, there was a conscience decision made to centralized operations away from the hub and focus on a more secluded location, 38 Cherry St, Tai Kok Tsui, Hong Kong.

Lastly, by analyzing the Maison’s clientele list, past and present, in addition to studying its’ Online consumers shopping reviews, loyal customers are willing to travel for Maison Margiela products; and with Hong Kong being a major connector with the rest of the world, this incentive allows opportunity to seek out a younger and more culturally diverse shopper, all while offering each guest an engaging and individual shopping experience.

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Contents Section 1

Section 2

Section 3

Behind Fashion's Invisible Brand Pages 6-13

Competitive Analysis Pages 16-21

Capstone Initiative Pages 24-49

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Mission Statement To reuse, recycle and reinvent

Brand DNA

The Use of White

With over twenty-five years in the fashion industry, Maison Margiela has always had a strong fashion presence among other houses and still remains one of the most enigmatic high fashion labels. The label known for its’ blank clothing labels and the concealed identity of the designer, is also known for its quiet logos, signature number system, stark white themes and its’ faceless designers. The label has spoken collectively as “we,” eliminating the idea of a singular designer and not confiding in hierarchy.

White is anonymous for Maison Margiela because conceptually, it can be seen as undefined. The house says, “White is neutral, the binary opposite of black, or a blank canvas and evidence of option, an option of expression, be that ours or that of those who choose to wear the clothes we propose.”

By not putting a face to his brand, Maison Margiela has believed his disappearance was an honest attempt to return the focus of fashion back to the the clothing. Today, John Galiano continues this tradition

while still shocking, inspiring, and intriquing designers as well as buyers of the high fashion industry. These executions are made possiible by appling the same ‘grunge’ techniques like deconstruction the brand identifies with, with exposed raw hems and fabric manipulations creating unique and engaging forms and silhouettes.

The color white is fundamentally major in many aspects of Maison Margiela’s identity, from the white interiors of the stores to the white lab coats worn by staff. the Maison also uses white to connect back to the concept of democratic design. As noted, the Maison Margiela design team and sales assistants wear white coats, thus white serving as a symbol of belonging to the house of Margiela, a rejection of hierarchy, and a nod to the haute couture ateliers of the past.

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Target Market Focusing on consumers between the approximate ages of 25-55 (a mix between Gen X & Gen Y), Maison Margiela is luxury, but only admired by those who recognize their codes. By taking Intelligent concepts and being meticulous in execution, customer and buyers continued to be captivated through their unpretentious in presentations, making Maison Margiela a critically adorned brand.

Still, more often now the subject of conversation by those with a less understanding of deconstruction, many millennials simply cannot relate to complexity of Maison Margiela, but remain interested for the avant-garde aesthetic, with the vast majority wanting to learn more about the brand’s design codes. And as Maison Margiela continues to break gender barriers, within the next 3-5 years, the brand will ultimately obtain a younger, more conscious demographic and fully penetrate the millennial market.

Why Shop at Maison Margiela Those devoted to the Maison demand one of a kind chic clothes of unidentifiable provenance that are unusual and witty, but remaining sensual (always at a visual frequency conventional people cannot pick up). Every garments is so eye-catching and difrentiated from most fashion houses in a way that many outside viewers cannot explain what is being presented, relying on the edified wearer for clarification.

Wearing Margiela can bestow a satisfying cleverness upon you, because the designs seem to be three, four seasons ahead of it’s time, and by the time it is the dominant design, it is no longer available.

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• Loyal customer base • Prime Location and size and design •Originally crafted designs

• Due to low of promotional initiatives, business potentially could start off stagnant

• Strong Brand identity

• Store location outside business district

• Products Catering to multiple income levels • Experience in Asian Market

• Expand customer demographic • Increased productivity • Further global expansion • Gain stronger social media presence • Implement more lifestyle enjoyable experiences in boutiques for customer engagement

• Affluent consumers flying abroad for Maison Margiela products • Hong Kong lagging as a luxury destination hot spot

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In Store Experience Visuals inside all boutiques support Maison Margiela’s minimalistic approach with clean lines and accented decor. With each boutique, it’s not about being in a Maison Margiela store, rather experiencing an extension of the brand’s core by creating intimate settings where customers are able to fully connect with the brand. This shines through many store visuals where objects and furniture are covered with white sheets to reference an artists’ workshop and employees will be seen wearing white lab coats connecting back to the Maison atelier further communicating unity.

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Competitive Analysis

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Beautiful, delightful, bold are the result of aesthetic grafting. From the front, a woman wearing one of her garments looks as though she’s slipped into a simple cotton shirt-dress, but the back view suggests that it’s actually an oversize sweatshirt pulled low over a lace skirt. So is she wearing three pieces or two? Or just one?

Abe enjoys tricking the eye with clothes that make an observer strain to determine out the reality.

Seventeen years after launching Sacai, she has gained a cult following around the world for her deconstructed yet surprisingly wearable pieces, created by combining contrasting textures and proportions, and splicing together elements of different garments to create something entirely new.

Japanese designers are very good at taking English classic tailoring and making it new and innovative, whether with the fabric or the design. This new way of thinking is perhaps what people have been searching for in an age of giant multinationals gobbling up young fashion houses. When everything seems to be manufactured in vast quantities for the delectation of millions around the globe, the artisanal, one-off nature of a Sacai garment has special power.

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Phillip Lim is determined and focus on his artistic creations and it shows well on the runway. He is an icon because he has the ability to create youthful yet sophisticated designs that appeal to many and while not break their banks. He takes cultures that differ from each other but combines them together seamlessly to make beautiful clothing. He is sophisticated, yet quirky, he is shy but edgy; Lim’s ability to fuse different styles together to create something new and chic is why he is an icon in the fashion industry.

His chic and classic looks are clean and well-presented and many designers have tried out his design codes and overall feeling of his runway shows. He gives off a feminine mood in his shows and some street edge as well. Not many put much street wear onto their runway because it is difficult to make it look high-end but Lim managed to execute it well.

His feminine style though is apparent in his designs as well and creates a romantic and flirty look because he uses a pale color pallet to successfully produce these looks versus a darker pallet for his edgy street wear.

This amazing gift of being able to mix sophistication and street-style is rare and Lim uses the most of his gift.

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Yohi Yamamoto is one of the few in his profession who has successfully broken the boundaries between commodity and art by creating clothing that ranges from basics like athletic shoes and denim jeans to couture–crafting gowns that are nothing short of malleable mobile sculptures. Lauded as a blend of master craftsman and philosophical dreamer, Yamamoto has balanced the seemingly incompatible extremes of fashion’s competing scales.

The reality was that the loose, dark-colored, and seemingly tattered garments were as startling to the average Japanese consumer as they were to the Western audiences that first viewed them. Although Yamamoto’s work changed and evolved over the last two decades, it retained several key elements, the ambiguities of gender, the importance of black, and the aesthetics of deconstruction.

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Aesthetically, the dressmaking techniques that gave Yamamoto’s work its deconstructed look were also related to traditional non-Western methods of clothing construction as well as to the concept that natural, organic, and imperfect objects can also be beautiful. Yamamoto’s professed love of and respect for women has not been evident to many because his clothes were often devoid of Western-style gender markers. He expressed an aversion to overtly sexualized females, and often dressed women in designs inspired by men’s wear.

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Capstone Initiative

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Flagship Implication

Market Analysis

Preceding the launch of the new flagship, a social media campaign will go in effect informing our high profile clients as well as general consumers announcing the arrival. Because Brian Edwards will be based in Hong Kong, Mr. Edwards has fully developed a flagship store that breaks the wall between the fashion and the culinary industry. The Flagship will house a mens and womens boutique in it’s first floor, and upstairs will house our Maison Margiela showroom for fittings and where affluent clients are able watch the current season’s collection on our outdoor catwalk. Topping off the flagship store also comes equipped with a cafe where customers may dine in have while out shopping or where guest may reserve the V.I.P section for private occasions or events.

Retailers in Hong Kong enjoy the best conditions in the world in which to operate, benefiting from first rate infrastructure, superior business conditions and a strong economic climate, according to a new report of design and consultancy firm Arcadis. Nevertheless, China will surpass the United States as the world’s largest retail market within the next three years and, for many, entering the Chinese market will remain a priority despite a recent slowdown in economic growth. Hong Kong dollar has strengthened alongside the greenback. The change in currency values has prompted some European firms to review their pricing in overseas markets such as Chanel.

Beijing currently houses the largest Maison Margiela flagship store while Hong Kong currently home of two Maison Margiela boutiques and through Lane Crawford. Through the implication of the Maison Margiela Hong Kong opening, the focus its’ Chinese operations in one central location, being Hong Kong. The grand unveil will held on March 8th, 2017 at 3 o’clock pm during Paris Fashion Week allowing the Beijing flagship to complete the A/W season. In a addition to this initiative, Maison Margiela will also extend the offer of to the public to allow consumers partake and shop in the new Maison Margiela experience.

Customers will now be able dine and shop in the in house Asian Fusion cafe where fresh ingredients will be delivered daily from American Grocery and brunch will be prepared in front of you.

On a global level, it is the Asian markets of Hong Kong and Singapore that are the stand-out places for retailers due, above all, to the quality of their transport infrastructure, ease of doing business and fewer restrictions on trade.

The area rises from above the Kowloon MTR station to Olympia Station, which is a newly redeveloped area project called Union Square. The location is also close to Central and the Airport inhabiting many expats who prefer to live in this area.

Target: Affluent Chinese Consumers

The Masion Cafe Market Analysis

Today, Chinese shoppers account for nearly half of the global luxury market, providing invaluable demand to brands in every segment. A younger and more sophisticated generation of shoppers with markedly different tastes, aspirations and consumption habits are reshaping the landscape of luxury in China. As consumers are becoming more educated, well-traveled and tech-savvy, they are emerging as the new ideal target market. Furthermore, Boston Consulting Group predicts Chinese tourists will spend about $1.8 trillion on travel and tourism by 2030 – nearly seven times what they spent two years ago.

The Maison Cafe will solely offer brunch services from 11:30 A.M. 4:30 P.M. and for private dinners or business meetings, reservations can be made after 6:30 PM until 8 PM. The opportunity for luxury fashion brands is not so much about diversification but mostly about recreating the quintessential luxury lifestyle customers are seeking when purchasing a branded fashion product from Burberry to Gucci to Ralph Lauren. Fashion retailers are adding these experiential elements such as cafés and restaurants to their stores to not only boost productivity but also provide another selling force; an to be noted is that with rise in social media in China, consumers are becoming more technological savvy, resulting in their love of taking photos of their meals and posting them.

In China, over 85 percent of consumers eat out at least once a week, according to a survey by Unilever Food Solutions. And, thanks to rising incomes, Chinese consumers are trading up to spend more on premium dining options, leading to expenditure on the food service increasing 8.1 percent to Chinese Yuan 799 billion (US $129 billion) in 2014, reported Mintel.

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Luxury retailers are opening up their space to restaurants, cafés and bars, to create excitement and give customers another reason to visit, at a time when customers are increasingly shopping Online. Retailers now need to create something other than product because product is not enough, there needs to be a driving force to increase foot traffic and keep customers in store longer in order to boosting sales.

Consumers need to increase dwell time and want a reason to come back and thought the turnover generated from restaurants and cafés may minimal, it’s about building customer loyalty and getting them in store and extending a piece of the brand to them.

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26 Human Resources

Art Director

Senior Buyer

General Manager

Assit. Buyer

PR Director

Social Media Manager

Senior Merchandiser

Assist. Merch.

Assistant Manager

Senior Sales Associate

Showroom Manager

Personal Shopper

Executive Chef Sous Chef

Sales Associate

Sales Associate

Sales Associate

Sales Associate

Job Title

Base Salary

Art Director $ 90,834.00 Senior Buyer $ 64,928.00 Assit. Buyer $ 33,126.00 PR Director $ 80,977.00 Social Media Manager $ 45,260.00 General Manager $ 59,174.00 Assistant Manager $ 41,395.00 Senior Merchandiser $ 70,474.00 Assist. Merchandiser $ 46,825.00 Senior Sales Associate $ 24,575.00 Showroom Manager $ 46,728.00 Personal Shopper $ 34,428.00 Executive Chef $ 44,695.00 Sous Chef $ 28,118.00 Sales Associate 1 $ 16,454.00 Sales Associate 2 $ 16,454.00 Sales Associate 3 $ 16,454.00 Sales Associate 4 $ 16,454.00

Bonus

Benefits (social sec., 401k, etc.)

Annual Income

$ 5,257.00 $ 4,624.00 $ 372.00 $ 8,980.00

$ 36,148.00 $ 35,725.00 $ 21,560.00 $ 45,794.00 $ 39,912.00 $ 24,793.00 $ 20,025.00 $ 35,883.00 $ 19,831.00 $ 18,323.00 $ 23,723.00 $ 15,000.00 $ 22,150.00 $ 17,331.00 $ 8,000.00 $ 8,000.00 $ 8,000.00 $ 8,000.00

$ 132,239.00 $ 105,277.00 $ 55,058.00 $ 135,751.00 $ 85,172.00 $ 88,227.00 $ 63,702.00 $ 115,385.00 $ 67,433.00 $ 45,664.00 $ 70,451.00 $ 50,828.00 $ 68,118.00 $ 45,584.00 $ 24,954.00 $ 24,954.00 $ 24,954.00 $ 24,954.00

Total Annual Payroll:

$ 1,228,705.00

$ 4,260.00 $ 2,282.00 $ 9,028.00 $ 777.00 $ 2,766.00 $ 1,400.00 $ 1,273.00 $ 135.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00

Salaries curtsey’s of: http://www1.salary.com/

Pricing and Assortment 28

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Womens Ready-to-Wear Skirts

Knitwear $1,690.00-$3,375.00

$995.00-$4,185.00

Coats & Jackets

Dresses

Trousers

$830.00-$3,095.00

$995.00-$3,120.00

$595.00-$1,995.00

Mens Ready-to-Wear Knitwear $545.00-$4,185.00

Suiting

Coats & Jackets

1,090.00-$1,990.00

$995.00-$4,185.00

Shirts $345.00-$860.00

Trousers $495.00-$1,090.00

Prices curtsey’s of: www.maisonmargiela.com/

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6 Month Buying Plan

Project Model

Margiela Boutique Hong Kong

6 Month Buying Plan, Spring 2017

Focus Category: Ready To Wear (000's) Plan Sales, Spring 2017 1500.0 Plan Turnover, Spring 2017 3.01 Average Stock, Spring 2017 499.1 Plan Markdowns, Spring 2017 300.0 Markdowns, % Sales 20.00% Plan IMU % 55.00%

(000's) Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost

February 240.0 16.00% 456.0 1.9 513.0 39.0 13.00% 336.0 151.2

March 285.0 19.00% 513.0 1.8 510.0 42.0 14.00% 324.0 145.8

Spring 2017 6 Month Buying Plan April May June 255.0 255.0 270.0 17.00% 17.00% 18.00% 510.0 535.5 540.0 2.0 2.1 2.0 535.5 540.0 429.0 51.0 57.0 69.0 17.00% 19.00% 23.00% 331.5 316.5 228.0 149.2 142.4 102.6

July 195.0 13.00% 429.0 2.2 510.0 42.0 14.00% 318.0 143.1

Spring 2017 1500.0 100.00% 499.1

300.0 100.00% 1854.0 834.3

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Assortment Plans

Maison Margiela Boutique: Hong Kong Assortment Plans Spring 2017

Focused Product Category: Ready to Wear

Planned Purchases, Retail: Womens: 60% Classification Coats and Jackets Knitwear Skirts Dresses Trousers

% 15% 10% 5% 20% 10% 60%

$1,854,000

$ Purchases $278,100 $185,400 $92,700 $370,800 $185,400 $1,112,400

Mens: 40% Classification Coats and Jackets Knitwear Suiting Shirts Trousers

% Total 11% 8% 5% 11% 5% 40%

$ Purchases $203,940 $148,320 $92,700 $203,940 $92,700 $741,600

Spring Assortment Plan

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Preliminary 34 Store Concept

Architect: Alexis Roberts

First Floor

Second Floor

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Sauteed Angus Beef 7 Sugar Snap Peas, Hoisen Jus Vegetable Spring Rolls 6 Conch Fritters 6 Sriracha Aoli

Tuna Tartare (Spicy Upon Request) 9 Sesame Oil, Ginger Lime Aïoli, Crispy Wonton Chips

Crispy Alsatian Pizza 5 Cheese Sampler 9 Crispy Fries Au Poivre 5 Baby Greens 5 Tarragon Gnocchi 8 Duck Confit, Truffle Parmesan Sauce, Crispy Shallots

Farfalle Pasta 7 Sautéed Chicken, Peas, Garlic, Tarragon Cream, Grana, Panko

Crispy Dim Sum 8 Choice of Pork, Shrimp or Half & Half

Front

Back

Menu Design: Julian Judge

*Dollars shown are in U.S. currency

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2 Story Retail Building Story Height – 13, 15 Building Square Footage Leve 1 – 2550 SF Level 2 - 3115 SF Total Square Footage – 5665 SF Basement Included? No Data Release Information – 2013 Average Price of Property per SF in Hong Kong is US $11,000 (According to Forbes)

M|M Estimated Cost RETAIL PAYMENT SCHEDULE 38 HONG KONG CHERRY ST Lot, including all stamp tax $ Utility Service, Site Work + Design Contract with HK $ Total Land Purchase (If required) $ General Contractor Firm Pricing $ Contingency on G.C. Works $ Total Contractor Firm Price $ Total Cost to Purchase $

500,000.00 150,000.00 1,500,000.00 1,300,000.00 100,000.00 1,400,000.00 3,550,000.00

Proposed Contractor Payment Schedule (Percentages of Contract Pricing) Stage One Deposit 15% $ 195,000.00

At $11,000/SF Cost $ 62,315,000.00 Contractor Fees at 25% Cost $ 15,578,750.00 Architectural Fees at 8% Cost $ 4,985,200.00

Stage Two Structural, mechanical, electrical rough in + floor slab

20% $

Stage Three Masonry walls, exterior plaster, concrete framing, Roof framing, roof finish, exterior doors& windows.

30% $

390,000.00

Stage Four Interior walls, interior and exterior finishes, cabinetry, interior doors and hardware

20% $

260,000.00

External Works + Clean Up

10% $

130,000.00

Stage Six Certification of Occupancy

5%

260,000.00

Stage Five

Please Note- Numbers are highly conservative.

$

6,5000.00

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Social Media Strategy Objective: To create a social media platform informing consumers of the grand opening of the new Maison Margiela Hong Kong flagship boutique for the 2017 Spring/Summer season. This will be executed in order of gaining a younger demographic as well as reintroducing Maison Margiela to the Chinese market with means of revving up the Hong Kong fashion scene.

Target Market: Affluent Chinese consumers ages 25-45

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Platforms: Instagram, Facebook, Twitter and Weibo

Data: Internet penetration rate in China has reached 48.8% according to CNNIC, with social media users estimated at 659 million– China Internet users on average spend over 6 hours 8 minutes on media per day (CIW), with 3 hours of that accounted for on social media.

70% of social media users are still under the age of 35, with 30% of those between the ages of 26 and 30

Concept Board

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44 Campaign Draft

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Marketing Margiela is known for their invisible marketing strategy, which entails the brand to maintain low profile on social media and advertising. This strategy is key in the dynamic to attract the appropriate audiences who wear the brands clothing for their own stylistic choices.

Photography: Brian Edwards Styling: Brian Edwards, Assist. Ivonne Rivas Collection Featured: Emily Seifert Hair/MUA: Ivonne Rivas Heels: Banana Republic Polka Dot Shirt: Banana Republic Blue Trousers: Banana Republic Boots: Personal

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Promotional Strategy 48

Social Media Campaign

Pre-­‐Launch January February

During March

Post-­‐Launch April

May

June

Instagram Facebook Twitter Mailing List Weibo

Weibo is the closest thing China has to Twitter, now has 198 million monthly active users, according to the company’s latest earnings report for the first quarter of 2015. That number is currently up 11.2 percent from 175.7 million in the previous quarter, with a rise of 38% year-on-year.

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50 Bibliography

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Horton, Christopher. “When It Comes to Luxury, China Still Leads.” The New York Times. The New

York Times, 05 Apr. 2016. Web. 24 May 2016.

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Tse, Betsy. “HK Luxury Brand Lovers Benefit from the Global Currency War.” EJ Insight. 18 Mar. 2015.

Web. 09 Mar. 2016.

Wetherille, Kelly. “Chitose Abe: The Enigma.” WWD. 29 Apr. 2015. Web. 09 Mar. 2016.

“Why Fashion Retailers Are Staging Food Experiences.” The Business of Fashion. 05 Aug. 2015.

Web. 09 Mar. 2016.

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