Opening Ceremony Buying Plan

ta b le o f co ntents

co m pa ny pro fi le & a n a lysis

backg ro u n d ............................................................... 6

m issi o n statem ent ..................................................... 8

b ra n d i d entity ........................................................... 1 0

b usi n ess sco pe .......................................................... 20

custo m er pro fi les .................................................... 22

co m petitive m a r ketplace a n a lysis

co m petito rs ................................................................... 26

swot a n a lysis ................................................................ 37

tr en d a n a lysis ............................................................... 42

Co lo r Asso rtm ent ......................................................... 55

b uyi n g pla n

co r po rate pla n .............................................................. 58

sto r e pla n s ....................................................................6 0

asso rtm ent pla n ........................................................... 6 6

statem ent o f r isk .......................................................... 68

Company Background

O

pening Ceremony was founded by California natives Humberto Leon and Carol Lim in 2002. Friends since their college days at UC Berkeley, the pair was inspired to create a place to share their passion for fashion, art, music, and travel after a trip to Hong Kong. So, they both left their jobs in corporate fashion and set up shop on Howard Street in downtown New York City. In keeping with the idea of global influence, Olympics-obsessed Leon and Lim named their new project after the cooperative, multinational event. With DIY help from their family and friends, the duo had soon realized their vision of a unique forum for creativity for artists, designers, friends, family, and anyone who shares the OC spirit. Today, OC is comprised of five retail stores across three countries, am immersive e-commerce and editorial website, a private label collection, and a devoted cult following.

mission statement

O pen i n g Cer em o ny a ppro pr iates th e

m issi o n statem ent

o f th e m o d er n

day O lym pi cs fro m th e fo u n d er, Ba ro n Pi er r e d e Co u b erti n,

m erg e

to cr eatively

spo rts, b usi n ess, a n d g lo ba l

pa rti ci pati o n.

b ra n d i d entity

O

pening Ceremony adheres to those founding Olympic principles, utilizing a multinational approach to retail and fostering a free-flowing environment always receptive to the new and the next, yet still appreciative of local influences. Leon and Lim envisioned an all-encompassing global community, with each store functioning as a distinct outpost featuring local curiosities alongside companywide mainstays, but one that is still in line with the brand’s governing aesthetic. Stores have constantly evolving displays and gallery atmospheres unique to their location, ensuring each shopping experience feels like a “voyage of discovery.�

The brand itself is an immersive yet open community, that allows followers to engage with the OC world to any degree they desire through social media, e- commerce, and a wide variety of offerings in every product category from clothes and accessories to home furnishings and art.

co lla b o rati o n s

O

pening Ceremony prides itself on community- not only fans and customers, but also collaborators. Connecting with creative thinkers from around the world and bringing their perspective to the OC customer allows for the constant evolution and enrichment of the OC brand. Leon and Lim have worked to introduce and foster new designers as well as put a new OC twist on established ones by collaborating with them on designs exclusive to OC. In addition to enhancing product assortment, these collaborations also strengthen designers’ ties to OC by incorporating them into the eclectic OC family. Blog spotlights, interviews, special store displays, promotional materials, e-commerce features, shoppable editorials, and in-store appearances and events introduce new faces to the OC world, and keep them coming back, becoming familiar faces in a diverse and inclusive creative community.

Design collaborators have included Chloe Sevingny, Yoko Ono, Pendleton, Spike Jonze, Pearl River Mart, Rodarte, Massive, Kodak, Coca-Cola, Christopher Kane, and many more.

tech n o lo gy

A

s part of the Opening Ceremony commitment to always searching out the new and the next, Leon and Lim are dedicated to staying on the cutting edge of technology and the ways this new technology is relevant to the OC customer.

An example of this tenet of forward- thinking is Leon and Lim’s 2014 collaboration with Intel on a wearable tech device that was useful without being cumbersome or sacrificing style. The result was the “My Intelligent Communication Accessory,” or MICA , a smart bracelet designed to appeal to the OC customer, based on Leon and Lim’s research on what the OC woman would want from a wearable device.

The MICA provides the convenience of an ultra-accessible screen on which to send and receive messages without the look of a typical tech device; its curved screen is hidden on the underside of a snakeskin cuff encrusted with obsidian, pearls, and semi-precious stones, successfully merging beauty and tech. As wearable technology as well as the relationship between technology and fashion comes to the forefront of the fashion conversation, Opening Ceremony’s foray into this brave new world seems especially prescient.

O C WO R LDW I D E

S

ince its inception in 2009, the Opening Ceremony website, OC Worldwide, has provided the global OC community with an online multimedia forum that allows anyone access to the immersive OC experience without having to set foot in a store. Functioning as an online universe devoted to OC’s unique culture, OC Worldwide offers an online store, a blog, a TV channel, editorial content, and social media outlets, continuing the brand’s aesthetic onto a digital platform. The same idea of a “friends and family” atmosphere that permeates every physical OC location extends into the digital world, as well, with OC Worldwide featuring avant-garde editorial spreads, blog posts, travelogues, and snapshots photographed by, styled by, written by, and starring regular collaborators ( like Spike Jonze, Ryan McGinley, and Gia Coppola) from OC’s wide creative network.

As part of OC Worldwide, social media outlets including Instagram, Twitter, Facebook, and Vimeo allow fans to stay connected with the latest news and announcements from OC, while still communicating the brand’s unique identity.

co u ntr i es o f th e yea r

E

very year, in homage to its Olympic roots and global perspective, Opening Ceremony chooses a new country to spotlight, featuring everything from fashion, design, and culture to music, travel tips, and local lingo. Just as the opening ceremony of each Olympic Games serves as a buoyant performance celebrating the host country’s heritage, each OC store is transformed into a marketplace to highlight the spirit and local design talent of the chosen country by offering exotic souvenirs and special collaborations. The theme continues across OC's entire array of platforms, with blog and Instagram posts, videos, and tweets all featuring aspects of the chosen country's culture.

2002 2003 2004 2005 2006 2007 2008 2009

HONG KONG BRAZIL GERMANY UNITED KINGDOM SWEDEN NEW YORK VS. LOS ANGELES JAPAN PARTNERSHIPS

2010 2011 2012 2013 2014 2015

PARTNERSHIPS FRANCE ARGENTINA KOREA BELGIUM PARTNERSHIPS

2016 CHINA

b usi n ess sco pe

sto r es: Nyc/ L.A./ to kyo 03/ 01/ 03

[lo n d o n po p-u p sh o p]

+

pr ivate la b el co llecti o n w h o lesa le sh ow ro o m e-co m m erce site

customer profiles

ch lo e ag e 43

ch lo e is a n a dvertisi n g executive livi n g i n NYC. Sh e is self co n fi d ent a n d r eceptive to n ew i d eas a n d very fash i o n fo rwa r d. sh e wa nts cloth i n g to r eflect h er su ccess a n d h er u n i qu e a esth eti c. sh e Fr equ ently i n vests i n n ew d esi g n er cloth i n g b ecause sh e a ppr eciates th e i ntr i n si c a rtisti c va lu e o f a w ell-cu rated wa r d ro b e.

joe ag e 32

j o e wo r ks i n th e m usi c i n d ustry i n NYC a n d li kes classi c m en sw ea r pi eces, b ut a lso wa nts to expr ess h is perso n a lity i n th e way h e d r esses. Qua lity is very i m po rta nt to h i m a n d h e d o esn't co n cer n h i mself w ith th e latest tr en ds b ut fo cuses m o r e o n w hat is r eflective o f h is ow n speci fi c a esth eti c a n d w i ll last h i m a lo n g ti m e. H e m a i n ly i n vests i n classi c d esi g n er item s a n d th e o ccassi o n a l statem ent pi ece.

ash ley ag e 20

ash ley is a co lleg e stu d ent w h o lives i n LA. sh e is a H eavy so cia l m ed ia user a n d a lways wa nts to a ppea r co o l to h er fr i en ds, sh e a d o pts n ew tr en ds qu i ckley a n d enj oys u n i qu e, expr essive item s. sh e fo llows m a ny b lo gs a n d aspi r es to ow n d esi g n er la b els.

TH ER EFO R E, SH E IS w i lli n g to I N VEST I n FASH I O N item s FRO M "CO O L" B RA N DS that w i ll set h er a pa rt, especia lly acesso r i es w h i ch sh e ca n pa i r w ith low er pr i cepo i nt item s.

COMPETITIVE MARKETPLACE ANALYSIS

co m petito rs

ba r n eys

o n li n e

d over str eet m a r ket

n et-a-po rter

to m o r row la n d

fa r fetch

assem b ly n ew yo r k

co llete

a m er i ca n two sh ot

m atch es

N ET-A-PO RTER -Online retailer offerring womenswear, shoes, and accessories from a wide variety of established and emerging designers in an easily-navigable format -Founded in 2000 by Natalie Massenet -Detailed fit and fabrication descriptions allow customers to make informed online buying choices -Strong editorial content, from shopppable features and themed edits, to tastemaker interviews and trend guides -Porter Magazine offers a beautifully executed story that invites readers to shop -Labels include Jil Sander, Jason Wu, Haider Ackermann, Prada

FA R FETCH -Unique e-commerce site that allows customers to shop the selections of over 400 individual boutiques worldwide, offering men’s, women’s and children’s clothing and accessories -Shoppers can conveniently experience a wide variety of trends, products, and viewpoints, all from a single website -Options to shop by brand or boutique, with convenient, uniform shipping processes -Offers its own editorial content highlighting different merchandise stories or boutiques -Boutiques include Decades, Los Angeles; Capitol, Charlotte; Super, Milan; Brown’s, London -Labels include Helmut Lang, Balmain, Y-3, Dries Van Noten

CO LETTE -The “original concept store” opened its doors in Paris in 1997 -Known for quirky, edgy selection of women’s, men’s, acessories, and miscellanea merchandised in artful, off-beat displays -Has a reputation for being ahead of the curve on technology, hosting a pre-launch Apple Watch event -Website is an immersive multimedia experience with full e-commerce, but is difficult to navigate -Labels include Lanvin, Undercover, Vetements, Alaia

M ATCH ES -London-based online destination for a wide range of luxury fashion labels, from established to up-andcoming; offers men’s, women’s and accessories -Primarily an online presence, but does have several physical locations in London -Easily navigable website offers shoppable editorial and blog content from tastemakers like Margaret Zhang and Leandra Medine -Free shipping and returns to the US, and duty refunds on returns -Labels include Stella McCartney, Balenciaga, Alexander McQueen, Anya Hindmarch

BA R N EY'S -New York-based luxury department store with 27 locations worldwide -Sleek, contemporary styling and wide selection of up-and-coming and established labels attracts Millennial customers -Well-developed e-commerce site utilizing precisely targeted email communication -Strong ties with designers has lead to enviable selection of exclusive and collaborative offerings -Labels include Theory, Nili Lotan, Aquazarra, Valentino

D OVER STR EET M A R KET -London-based retail concept store with locations in London, Tokyo, New York, and Beijing -Founded by Japanese designer Rei Kawabuko in 2004 -Known for a “daring” retail edit and edgy, creative visual merchandising, centered around the idea of “beautiful chaos” -Emphasis is on menswear, focusing on street and up-and-coming labels, but does stock womenswear -Does not have a strong online presence, but has a robust cult following -Labels include NikeLab, Stussy, Sacai, Simone Rocha

to m o r row la n d -Contemporary Japanese brand known for its elegant, gender-less take on classic pieces and innovative uses of traditional Japanese textiles -Carries both men’s and women’s clothing from the Tomorrowland line, as well as unique items from an artfully curated selection of brands from around the world -Recently opened first physical location outside of Japan in SoHo in New York in 2015 -Website serves more as a shoppable lookbook than a true e-commerce vehicle, but does communicate the aesthetic of the brand -Labels include Isabel Marant, Acne, Want Les Essentiels, Various Projects

assem b ly n ew yo r k

-Avant garde New York-based store with locations in SoHo and Los Angeles, carrying men’s, women’s, and accessories from its CFDA-lauded house line and edgy, lesser-known brands -Known for artistically unisex aesthetic -Cleanly minimal website includes strong blog content and editorial lookbooks for each season, along with worldwide shipping -Relative newcomer to the fashion scene- founded by artist Greg Armas is 2008 -Labels include Holly Ryan, A Detacher, Brvtvs, Westerlind

a m er i ca n two sh ot -Industrial-chic SoHo store-cum-coffee bar offering quirky and cool men’s and women’s clothing and accessories, and a well-curated selection of vintage Americana pieces -Only one physical location, but full product offering is available online, along with shoppable editorial content -Strong social media presence, especially Tumblr and Instagram, that promotes a familial atmosphere for customers -Labels include Rachel Antonoff, tba, Imago-A , Miista, Reyn Spooner

swot a na lysis

swot str en gths

- atm osph er e a n d sto r e d esi g n/ a esth eti c: "closet feel" - u n i qu e/n ovelty a ppea l -"fr i en ds a n d fa m i ly" m i n dset - w i d e ra n g e o f pr i ce po i nts - Perso n a l sh o ppi n g - stro n g co lla b o rati o n s - loya lty fro m d esi g n ers a n d custo m ers - so cia l m ed ia a n d b lo g - D iversity & i nter n ati o n a l i nter est

swot w ea kn esses

- R estr i cted n oto r i ety d u e to a sm a ll ta rg et m a r ket - ED GY ATM OSPH ER E CA N B E I NTI M I DATI N G A N D A TU R N O FF FO R SO M E CUSTO M ERS

swot o ppo rtu n iti es

- g lo ba l sto r e expa n si o n - m o r e i n vo lvem ent i n a rtisti c co m m u n iti es: d i g ita l a n d physi ca l - m o r e effectively uti lize vi m eo: pro m oti o n a l pu r poses - d evelo p a m o b i le a pp to d r ive eco m m erce a n d foster a so cia l co m m u n ity

swot th r eats - h i g h r isk i n b uyi n g A DVA N CED a n d i n n ovative m ercha n d ise - co py cat sto r es a n d b ra n ds - stayi n g r eleva nt i n a co n sta ntly evo lvi n g m a r ket -sh o ps that r each a la rg er m a r ket

trend analysis

Opening Trends: Fall winter 2016 Whipped Marshmallow Colors Denim Arctic Fur/Shearling Zero Gender Grunge Military Influence

buying plans

CO R PO RATE PLA N

W

e have planned our net sales for Opening Ceremony at $2,300,000 for Fall 2016, based on a 15% increase from estimated Fall 2015 net sales of $2,000,000. The 15% planned increase is based on Opening Ceremony's upward trajectory in sales and popularity since its inception in 2002. Because we are turning 2.42 times, we will have an average retail stock of $949,800, based on our planned net sales. We have planned our reductions at 25% to allow for a continuous flow of receipts when buying advanced fashion. Our initial markup has been set at 60% to cover planned profit, operating expenses and reductions.

STO R E PLA N S

B

ased on our estimation that the New York store accounts for 55% of our business, Los Angeles for 40%, and the Ace Hotel location for 5%, we have planned our New York store net sales at $1,265,000, or 55% of our planned corporate net sales. Similarly, we have planned our Los Angeles store net sales at $920,000, or 40% of our planned corporate net sales.

Because the New York and Los Angeles locations together make up the majority of Opening Ceremony’s business, the inventory turnovers for each store largely mirror that of the corporate plan, which is 2.42. As it is our flagship store and the nucleus of the Opening Ceremony universe, the New York location has a higher turnover at 2.60, while the Los Angeles location is set slightly lower at 2.57.

new york

los angeles

ASSO RTM ENT PLA N

U

sing our planned purchases at retail of $2,819,400, we calculated the purchase dollars for each category and designer as percentages of that number. We chose designers that are mainstays of the Opening Ceremony lineup as well as those whose designs feature prominently in our projected trends. We also chose three Chinese designers that are relatively new to the US market, in keeping with OC’s chosen country of focus for 2016, China.

Designers new to OC are marked with a star, and Chinese designers are marked with a Chinese flag. We also designated 20% of our designer assortment plan as “other,� leaving a significant portion of our budget available for purchasing any new designers or trends that appear on our radar.

statement of risk

W

hile we are confident in our buying plan and stated trends, we are also aware that buying advanced labels new to Opening Ceremony and international labels not well-known in the U.S. carries inherent risk, even with markdowns written into the buying plan. As buyers for such a fashion-forward retailer, we must be constantly on the lookout for the new and the next, rather than relying on safer, more predictable staples.