倫敦藝術大學-採購銷售論文-Part1

Executive Summary:

Superdry is a British fashion brand that combines vintage Americana style with Japanese graphics.

This report provides academic models supported by both primary and secondary research on the planning of a 15-piece collection for Superdry's Original and Vintage range for Autumn Winter 2022 to appeal to an under 25 female younger target customer while meeting the following criteria:

To identify a gap in the present marketplace that Superdry has not yet filled, theoretical and financial modeling, primary research and secondary research have all been adopted.

In addition to consumer insights regarding demographic purchasing patterns and trend preferences, the collection considers macro-environment factors including sustainability and economic conditions were taken under consideration while creating the range.

The collection will target females between 16 and 24 years of age, which Superdry identified as their young consumers, and highlighted fashion followers in this group as a major growth potential. The whole collection concept was related to three keywords-relevant, sustainable, and vintage. This audience will be reached through the collection with both Racer revival and Academia style based on 5 repurposed unsold stock hero pieces with 10 sustainable sourced core pieces, styles proven through the process explained in this report This report starts with primary/secondary research from company background and category mix to comparative shop, the current macro environment analysis, and key trend on color/shape, and finally concludes with key merchandising data to align with the key KPIs.

In conclusion, 15-piece collection was developed with sustainable, stylish intentions and was achieved by the Superdry’s key KPIs.

Table of Contents

1. Introduction P.8

2. Research Methodology

2.1 Primary & Secondary research sources P.10

2.2 Research limitations P.10

3. Research Findings & Analysis

3.1 Category mix P.12

3.2 Comparative shop P.14

3.3 Positioning map P.17

3.4 PESTEL analysis P.18

3.5 SWOT analysis P.19

3.6 Ansoff Matrix P.20

3.7 Target market P.21

3.8 Pen portrait P.22

3.9 Survey P.23

3.10 Mood board P.24

4. Trend analysis

4.1 AW22 Key trend P.26

4.2 The focused trend for the range P.31

4.3 AW22 Key Colors P.32

4.4 AW22 Key shape P.35

4.5 Colors board P.37

5. The collection

5.1 Collection concept P.39

5.2 Fabrication P.40

5.3 Collection P.41

5.4 Outfit building P.42

5.5 Range pyramids P.43

5.6 Store grade P.44

5.7 Range allocation by grade P.47

6. Merchandising and financials

6.1 Bottom-up range plan P.47

6.2 Top-down range plan P.48

6.3 Sales phasing P.48

6.4 Feedout margin P.48

6.5 WSSI P.49

7. Conclusions& Recommendations P51

9. Appendices

9.1 Appendix A: Survey P.59

9.2 Appendix B: Research limitations P.63

9.3 Appendix C: 15 pieces costing sheets P.64

Table of Figures

Table of Tables

Table of Images

Introduction

Introduction

“TO INSPIRE AND ENGAGE

Superdry background:

Superdry PLC is a modern British company that focuses on producing high-quality goods that blend with Vintage Americana and Japanese-inspired graphics with British heritage. The brand is distinguished by premium materials, real vintage washes, authentic detailing, top-notch hand-drawn graphics, and customized fits with diverse styling.

This report outlines Superdry’s wide consumer base, it provides outstanding product choices based on good quality and delivers trend-focused products for a 15-piece collection for autumn and winter 2022 while reducing the average age of Superdry’s customers to attract under 25 female consumers. The range is in the category of original and vintage style with more fashionable and sustainable concepts.

Key KPIs assigned to this report included:

An OTB of 1.1 Million

A target ASP of 71.81 pounds

An Intake Margin of 75%

12 weeks selling period with 2 weeks being in markdown

3% Terminal stock

Full price sales mix 80%

The collection will launch on 20 SEP,2022

Critical analysis and evaluation will be provided throughout this report using theoretical models and combined with primary and secondary research.

The purpose of the collection is to identify the gap in the current range and to attract more Gen Z female consumers.

STYLE OBSESSED CONSUMERS, WHILE LEAVING A POSITIVE ENVIRONMENTAL LEGACY”-Superdry

Research Methodology

Primary & Secondary research sources

The primary research of this project includes a comparative shop which helps to compare prices, fabrics, and colors of similar merchandise in competing stores (Goworek, 2007), and an online survey to obtain the most direct information from customers (see appendix A)

For key secondary research was used those online sourced such as WGSN, and Superdry.com which can help to further build the research.

Research Limitations

There are several limitations to this study were identified during the research, including sample size, time, cultural and language bias, and most importantly, limited access to sale and stock data, which could have been a key information source for the 5 hero repurposed pieces.(see appendix B: Research limitations)

Limitations for primary research: Time/sample size/audience’s age

Limitations for secondary research: Culture & language bias/limited access to sale and stock data

The research methodology summarizes that the primary and secondary research provides the most direct information about the product and market, which is important to further build the range.

Figure 1:Primary research sources(Author’s own,2022)

Figure 2: Secondary research sources (Author’s own,2022)

Research findings and analysis

Category Mix

Five initial competitors for the comp shop were identified (see figure 3.)

The result of the survey indicates that Urban Outfitters and Hollister were the most mentioned brands among the participants (see image 1). Figure 4 represents the category mix of Superdry’s two main competitors. Tops to bottoms ratio of Superdry was 4 to 1, which shows there is an opportunity to increase the number of bottoms

Figure 3:Figure 3: Category mix vs 5 competitors from Edited

Figure 4: Category Mix (Author’s own,2022)

in this report’s range.

Image 1:Result of the survey: participants of the most shop brand

After the secondary research from Edited (see figure 5) shows that Superdry's overall price architecture is the highest compared to its competitors. Mostly because of their higher price points for outerwear (see figure 3). However, Urban outfitters have higher prices for tops and bottoms. Therefore, it shows that there is still space to increase the price points of tops and bottoms in the range.

Figure 5:Comp shop (Author’s own,2022)

Figure 6: Average price from Edited

Figure 7: Price index from Edited

Figure 8：Patterns from Edited

Figure 9: Price discount from Edited

Positioning map

Figure 10:Positioning map (Author’s own,2022)

The positioning map above placed Superdry in the middle in terms of price and fashion. While Urban Outfitters is leading the fashion category on the map. Urban Outfitters is the only brand offering the option of remade clothing in-store. This presents key opportunities for Superdry by increasing sustainability options and making it more trend-focused.

A Pestel analysis is essential for developing effective marketing strategies based on changing macro-environments. The highlighted part shows the importance of sustainability, which reflects the range of this report.

Figure 11:PESTEL (Author’s own,2022)

A SWOT analysis can help to demonstrate a business strategy to identify the retailer’s internal capabilities and external environmental factors. The biggest strength of Superdry is the power of the brand which has a history and loyal customer base, and quality which is unchanged. As for a weakness, not being trend-focused is the main concern.

Figure 12:SWOT (Author’s own,2022)

Ansoff matrix

The Ansoff matrix offers a brand four strategies that support the company’s growth and expansion while recognizing the risks.

Superdry has introduced an organic cotton collection to highlight its intention toward sustainability, which increased engagement rates and social media followers.

Figure 13:Ansoff matrix (Author’s own,2022)

Target market

According to Boardman: “Generation Z are much more aware of and concerned about the environmental impacts of fashion.” (Boardman, Rosy, et al.,2020)

The clothing retailing Europe 2022 report from Mintel shows that 31% of British consumers (one of the highest in Europe) have purchased second-hand clothes, which means that UK sustainable clothing market (second-hand, vintage) has great potential for growth in the future

Also, according to Forbes (2021), Gen Z shoppers are ready to pay 10% more for sustainability. All this points out the keyword 'sustainability' and links it with vintage and its potential.

Figure 14:GEN Z- Target market (Author’s own,2022)

Pen Portrait

Pen Portrait

Who? She is Emma, a 20 years old (Gen Z) girl

Interest? Thrifting/ clubbing/ vlogging daily outfits/ skateboarding

Where? She lives and studies in east London with her artist boyfriend who also has an interest in fashion

About the job… She has a part-time job in fashion retail industry

Shopping place? Vintage clothing stores in brick lane, Depop, or smaller brands e.g., Jaded London

Music genres? She like pop music/ Indie music/ fan of the Florence machine

Purchasing decision was driven by... She cares about the environment. The top three factors that influence her purchasing choice are sustainability, quality, and style.

Income She has slightly higher disposable income than her peers as she earns extra from being an influencer. Around 25K-30K

Image 2:Pen portrait (Author’s own,2022)

Table 1:Pen portrait table(Author’s own,2022)

The questionnaire provides insight into consumer shopping behaviors and their priorities and the connection between the data and the age of the customer.

75% of the participants are from the age of 16 to 25, which is the target audience

Limitations:

85% have not shopped at Superdry for over a year

Variation of participants is limited to the platforms the survey was posted on

Total participation:107

16-25 years old identify Superdry as not trend focused

85% have not shopped at Superdry for over a year

79% not aware about Superdry sustainable initiative

40% suggested that specific individuals influenced their style

‘Price’ and ‘style’ are the top two criteria when making purchasing decisions.

Around 78% still prefer to shop in-store, with brand website following closely as second choice, shopping second hand is also being mentioned within the 16-25 age range

Image 3:Key findings of the survey (Author’s own,2022)

Table 2:Survey (Author’s own,2022)

Mood Board

For the mood board, the girl in the middle was wearing a racer-style outfit, which is one of the range's key styles- Racer revival There were some sustainable elements in the board, which represent ‘sustainability.’ “Vintage” and “authentic” were the keyword that this range wanted to represent to customers. The colors orange, represent the original spirit of Superdry.

Summary:

This part summarizes that through the research the analysis, the trend is crucial that affect people's purchasing decision and the awareness and demand for the sustainability market are rising.

Image 4:Mood board (Author’s own,2022)

Trend Analysis

Key trend AW22

⚫ Y2K/Year 2000:

The trend spotter defines it as futuristic and tech-loving fashion from the mid‘90s and early 2000s back for a second round. Y2K style is quite futuristic with a slightly retro edge.

⚫ Racer Revival:

The rise of the biker aesthetic is driven by current pop culture icons and y2k rock ‘n’ roll nostalgia. Embracing the freedom and radical sports with a punch of youth rebellion, the style is gaining popularity. At recent music festivals, there was evidence of the return of rock ’n’ roll's influence among Gen Z. (WGSN)

⚫ Be the rainbow:

The runways prove that AW22 will be unseasonably bright and retailers can look to color up their best-performing articles, and provide shoppers with positive sentiments. (Edited)

⚫ Party people:

A youthful and free-spirited energy inspires this playful, flesh-flashing partywear theme. As Gen Z’s obsession with ’90s-meets-Y2K nostalgia continues, this period will reign for another season. Retailers continue with simple silhouettes where designs are geared towards a disco feel, using mono-color statement shine. Metallic neutrals are prominent across apparel. (WGSN)

Image 5:Y2K Key Trend AW22 (Author’s own,2022)

Image 6:Racer Revival Key Trend AW22 (Author’s own,2022)

Image 7:Be the rainbow Key Trend AW22 (Author’s own,2022)

Image 8:Party people Key Trend AW22 (Author’s own,2022)

Focus Trend for the range

The first key trend was focused on Racer Revival, which heavily used block colors and bold contrasting stripes to present cool racing look.

The second key trend was focused on Academia, which was inspired by Y2K The academia fused preppy and Y2K style to become a contemporary trend.

The Superdry’s AW/22 15 pieces design was based on those two trends to create a new original & vintage collection.

Original & Vintage

Image 9:Racer revival- trend focus (Author’s own,2022)

Image 10:Academia- trend focus (Author’s own,2022)

AW22 Key colors

Figure 15:key color (Author’s own,2022)

AW 22/23 top 3 key color includes bright cyan, bright pink, and medium pink, the key color of this collection that has been chosen as hyper pink.

Figure 16: Hyper pink from WGSN

AW22 Key shape

Motor Sports: loose leather trousers/ biker jacket

Micro-Mini skirt

Figure 17:Motor sport from Edited

Figure 18:Micro-mini skirts from Edited

Figure 19:Color-block leather from Edited

Loose color-block leather jacket

Figure 20:Euphoria from Edited

Uniform look: loose blazer with a mini skirt

Colors board

Image 11: Pantone color (Author’s own,2022)

Image 12:color board (Author’s own,2022)

The collection

Collection concept

For the range, it is decided to base the collection on the three keywords identified through the research and survey, which were relevant, sustainability, and vintage. To do this need to create 5 hero pieces exploring the possibility of remaking/ repurposing garments from existing Superdry stock.

It was a chance to test the market with these remade pieces in terms of concept and lower the risk level by balancing it with 10 sustainably sourced garments that are trend-focused and commercial. This concept would help Superdry to understand customers' reactions towards the remaking concept are higher risks and show customers the possibility of creating a creative solution to sustainability whilst keeping the brand more relevant to Gen z.

And with concept in mind, it was time to start exploring the possibility of achieving these goals, keeping in mind the three key words.

Image 13: Collection concept(Author’s own,2022)

Image 14: Three keywords (Author’s own,2022)

For the five hero pieces, need to look at the stock on Edited that have been released since 2019/2020, and had 0 replenishment or never had a major sell through. This stock would have been sat in the warehouse, taking up space and creating cost through rent and maintenance. Decided to use up these garments to create more relevant/ trend focused pieces.

For example, for this remade sweatshirt, design team took the hoodie and polo and through a series of deconstructing and reconstructing, also with over dyeing some of these with natural dyes to create the trending colors. This is the solution to achieve the three keywords shown with the 5 hero pieces

Image 15:Making process for 5 hero pieces (Author’s own,2022)

Fabrication

The sustainable ingredients below: organic cotton/recycled polyester/hemp/yak, have been used to produce the 10 core products.

Figure 21:10 core products (Author’s own,2022)

Using various processes of deconstructing, paneling, layering, and overlapping to make these 5 hero pieces. Creating a new life to the existing garments.

Using sustainably sourced material to make those 10-piece garments.

Figure 22:Collection 5 hero pieces (Author’s own,2022)

Figure 23: 10 core products (Author’s own,2022)

Figure 24: Outfit building (Author’s own,2022)

Range pyramids

Figure 25:Range pyramid (Author’s own,2022)

Figure 26:Store grade (Author’s own,2022)

Range allocation by grade

Figure 27:S grade (Author’s own,2022)

Figure 28: M grade (Author’s own,2022)

Figure 29:L grade (Author’s own,2022)

Figure 30:Flagship& online grade (Author’s own,2022)

Merchandising and financials

Bottom-up range plan

Overall, the ASP=£71.4, the Intake margin is 76% and the OTB is under £1.1M The 3 high-risk products have lower ROS. Selling prices are higher for remade pieces due to longer construction times bringing up the cost.

Top-down range plan

The top-down range is allocation by different grades, and the top 2-grade average price was the highest at £79.32

Figure 31:Bottom up (Author’s own,2022)

Figure 32:Top-down range (Author’s own,2022)

Sales phasing

The second week had a 12% sales mix because of the launch week ahead with payday, then all the way slightly up and down, and peaked at 10 weeks (black Friday.)

Feedout Margin

The feed out margin was 72% with £65,354.61 cost of markdown

Figure 33:Sales phasing (Author’s own,2022)

Figure 34:Feedout margin (Author’s own,2022)

Figure 35:WSSI (Author’s own,2022)

Forward cover peaks at week 7, with terminal stock £32,677(3%)

Conclusion and recommendation