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W.I.P.

WORK IN PROGRESS


W.I.P.

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TA B L E O F C O N T E N T S 01 - 04 INTRODUCTION

0 5 - 1 0 B R A N D A N A LY S I S

11 - 13

KEY OBJECTIVES

1 9 - 2 5

SHOP

2 6 3 0

L AY O U T METRICS

3 1 - 3 8

FINANCIAL

3 9 - 4 0

CLOSING


INTRODUCTION ---

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Mission // Vision Pop - Up Goal Executive Summary


Carhartt WIP w a s e s t a b l i s h e d to bridge the gap between A C C E S S I B L E STYLE & T R A D I T I O N A L WORKWEAR .

STREET | COMMUNITY | QUALITY | REPUTABLE| EXPERIENTIAL

OBJECTIVE To create community within the brand as well as the street culture in the city of Detroit.


Carhartt WIP was established to bridge the gap between accessible style and traditional work wear. Our Pop up between Slow’s BBQ and Carhartt WIP is dedicated to creating a bridge in the community within the origional Carhartt brand home base as well as the street culture in the city of Detroit. People will be able to come together and see Carhartt WIP in a new light. Through this event, Carhartt WIP will bring attention to the brand, as well as bring people to the city of Detroit and help it in its efforts to grow at it’s roots. By establishing the Pop-Up with the trendy and up and coming underground art scene of Detroit’s historic Corktown district, this event will help gain the millennial and Z-Generation consumer who might look at the brand more as street wear than work wear. This even will bring together the brands existing blue collar worker and the wanted young artist and millennial customer.


BRAND ANALYSIS---

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Company Overview

Corporate Responsibility

Code of Conduct Competitors Customer Profile


Company

Overview

In 1889, Hamilton Carhartt started out producing cotton duck overalls – a heavy woven canvas fabric aimed at Detroit’s industrial workers. In 1994, Edwin Faeh established his project ‘Work in Progress’ (W.I.P) and became the first distributor of Carhartt in Europe adapting from the utilitarian style of clothing and honing in on the streetstyle movement. Today, Carhartt has evolved into a range of workwear, street wear, and outdoor wear. “Building on the roots from the American company, Carhartt WIP products are today manufactured and sold globally. Production is centred around a company-owned factor y in Tunisia with the support of suppliers around the world.”

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"When Carhartt was founded in 1889, Hamilton Carhartt spoke about the role of a responsible business, stating that it should do “the just and honest thing, gainful if possible.” Today, we look back with pride on this heritage and take inspiration from it, as we aim to continue to live these values every day. We constantly strive to improve our business practices for the benefit of the environment, our employees, the workers producing our products and our consumers. It is a long-term journey that we commit to continue step by step."”

Goals Carhartt strives to provide customers with high-quality workwear and daywear at the best price. While meeting all corporate responsibility standards and offer customers the best possible experience. Carhartt has introduced fully sustainable packaging to deliver their products in. Carhartt supports healthy living in every aspect of business and continues to take pride in all environmental and community improvement efforts.

Corporate

Responsibility

Values Carhartt roots from the belief in business to do “the just and honest thing, gainful if possible”. Code of Conduct Carhartt instills a Code of Conduct to hold all those who are tried to the brand accountable. Carhartt owns their own factory in Tunisia and implements their Code of Conduct to the very highest standard. Carhartt requires business partners and suppliers to renew their commitment to this code periodically.

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A skateboarding and clothing brand based in N.Y.C. that caters to the youth through skateboarding, hip hop and punk rock cultures. Through a business model based heavily on collaboration, they have become one of the most saught after American street culture brands today.

Vans

Established in 1966 by a high school dropout, this streetwear brand was born out of the Californial skate culture of the 70’s and has become a householde name due to its influence in sports, music and art alike.

Stussy A California icon 0f 80’s surf culture, Stussy is one of the oldest street wear brands and is recognized internationally for it’s distinct style and impact in American hop hop culture.

COMPETITIO

Supreme

Supreme is now valued at 1 billion dollars as a whole, which ranks it number two in highest revenue out of all four brands. This is due to its 50% acquisition by private equity firm Carlyle Group in 2017 and its unique, strong, and often obscure at times collaborative effort with brands like Louis Vuitton, Playboy, Comme des Garcons, Muhammad Ali and Levis. Their limited collections and exclusive product drops have gained them a cult following that has set them apart from contemporaries. You can expect this company to brand everything from your basic shirt, pants and jackets, to a dog food bowl and even nunchucks. Their pricing is relatively affordable with T-Shirts running around $40 and leather wallets at $150, but due to their limited quantity and scarce location, their products tend to get resold for over 5-10X their retail worth. Their target customer is currently the youth of street culture consisting of millennial and Z- Generation, but since they have been around since 1994 they also have a strong following of customers in their late 30’s and 40’s. Supreme poses a threat to Carrhartt due to their strong cult like following, similar target customer, large product assortment, and extreme influence on global skate, hip hop and street culture.

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Originating out of the surf wear trend of Orange County, California in 1988’s, Stussy has now been adopted by hip hop, punk, skate and streetwear culture scenes on a global scale. It’s founder, Shawn Stussy started the brand after manufacturing skateboards for a career and had an itch to integrate into the surf market. Known for its “California lifestyle” clothing, Stussy is one of the oldest streetwear brands that sells product in Europe, Asia, Canada, Australia and its homebased USA. It operates as an Omni channel company by selling through stand alone and partnered bricks and mortar locations and online. Author Steven Vogel wrote this about the brand; “Stussy was one of, if not the first, brand to do what they do. They balance tapping into the past, remaining current and tapping into the vanguard zeitgeist better than most. At their core, they aren’t pretentious, they make on-point clothes wit out really succumbing to trends.” They are known for their iconic signature like print on apparel and accessories and just as Supreme has done, have partnered with other brands like Dover Street Market and Nike. As a privately owned company, in 2014 they generated over 14 million in revenue. They are direct competition to Carhartt due to their global position, long standing position in the streetwear market, and wide range of cultural influence.

Van’s consistency in an otherwise inconsistent retail environment has proven the 52-year-old brand to be not only profitable, but growing. The Cypress, California based company made 2.3 billion in 2016 and have surpass their known brand image of providing black and white checkered shoes to teenage skateboarders. They have given their customers a long time platform to grown up with since their creation in Anaheim, CA back in 1966. By providing fresh product launches, having affordable price points and keeping true to their brand, Vans has managed to create a strong following throughout their reign in the skate community. They sell everything from shoes and skate gear, to apparel and accessories for snowboarding, surfing and of course skateboarding. They have sponsored traveling rock festival Warp Tour for the last 20 years and have built or funded dozens of skate parks over the years, which has given them great exposure and build upon their target community base. In 2004 the company merged with retail conglomerate VF Corporation, which has shown great growth and expansion for the brand. They are an Omni channel brand, selling their products through their own retail stores, other retailers, and online. Vans is a threat to Carhartt WIP due to their widespread availability, competitive price points between $15-$100, similar target customer, and frequent sales promotions. They also have a following that has grown up with them for over 50 years, whereas Carhartt WIP has existed for only half that.


VALS

segments

distinct types—or mindsets—using psychological traits and key drive consumer

US a

adults

into

eight

specific set of demographics that behavior.

NAME: Billy Richmond AGE: 25 LOCATION: Joliet, IL OCCUPATION: Warehouse Operations Manager at Ikea INCOME: $50,000 yr. Billy is a dedicated worker who enjoys backyard cookouts with his friends, skating around and building furniture in his free time. He has his B.S. from UT Austin and works hard to provide for himself and his German Shepard Ralph.

Using VALS provides clients with a fresh perspective by effectively “putting them inside the head” of their customers.

CARHARTT WIP CUSTOMERS ARE.... INNOVATORS Are always taking in information (antennas up) Are confident enough to experiment Make the highest number of financial transactions Are skeptical about advertising Have international exposure Are future oriented Are self-directed consumers Believe science and R&D are credible Are most receptive to new ideas and technologies Enjoy the challenge of problem solving Have the widest variety of interests and activities.

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3

KEY OBJECTIVES ---

3

Collab. Proposal PopUp Objectives Location // Time Menu


POP-UP INSPIRATION MOODBOARDS


PopUp Goal Our Goal is to generat more customer awareness and enguagement with the brand to establish a better relationship with the prospective consumer base. Through this event, we will not generate much profit because it is not a priority. In the event that sales are made, it will only bring more fortune in increasing future sales.

W.I.P. W.I.P. W.I.P. W.I.P. W.I.P. JUNE JULY AUGUST

SUMMER // 2019

THURSDAY FRIDAY SATURDAY 1350 MICHIGAN AVENUE

12 - 5 PM

DETROIT, MICHIGAN

W.I.P.

Pop Up Shop!

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CARHARTT CARHARTT CARHARTT CARHARTT CARHARTT


LOCATION

ANGIE EVENTS CATERING

PopUP BBQ Menu & explanation


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LAYOUT ---

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Mood Board Exterior View Floor Plan Interior View


ANGIE

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SHELBY An original factory to the Corktown district of downtown Detroit, this location boasts historical significance to the Carhartt brand, being where the company was first founded.


Interior Floor Plan When choosing a location, we took into consideration the architectural elements of a space that would align with the Carhartt brand. The raw, industrial look of this old warehouse was the perfect match to host our events. The red brick, exposed old wood, and concrete floors with concrete beams across the ceiling encompassed that rough texture and edgy vibe.


A major goal when deciding how to make the best use of this space, was to take into account the number of guests we wanted to seat comfortably in 6,000 Sq Ft.

With an open floor plan that this warehouse has, it was a challenge to create division in the space without walls. The space is broke up by furniture placement and how it would affect a customer to journey through the room.

Interior Floor Plan


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METRICS ---

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Employee Roles Interior Decor Product Assortment Planogram


Who will be staffing your PopUp? We will be hiring employees to staff our pop-up shop for the months of June, July and August. Workers will work in alternating schedule time Thursday through Saturdays every week for the Summer season of 2019. We will scout potential hires at local Detroit skate parks and also pull from our collaboration with Slow’s Barbeque. Pay will be the state of Michigan’s minimum wage at $8.90 /hr, on an 8 hour max working day, with no overtime. On top of pay, employees will be provided a free meal every shift from Slow’s BBQ, plus a 25% discount on all Carhartt merchandise. Employees will be required to provide personal information and contact information during the duration of their hire period. They must fill out an application provided by Slow’s BBQ and also a 1099-Misc tax form for legal compensation. We will focus on hiring between the ages 18-30 in order to generate more youthful traffic, but are not opposed to other age groups.

What roles will they play? “Sup dude, how’s it goin?!”

Employee roles will include greeting customers, checking out and processing purchases in retail space, providing assistance and answering questions about the brand to all shoppers, showing up to work on time and in clean and on brand style. Employees are not required to wear Carhartt WIP during working hours, but are urged to keep work wear within the realm of street wear culture and must show a passionate spirit about the brand.

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w

OPERATIONAL COST

$76 x 5 = $380

Decor/Fixtures -------------------- = $11,660 Rent -------------------- 2,400 x 3 = $7,200 (3 months of rent) $215 x 40 = 8,600

Internet -------------------- 25 x 3 = $75 (Comcast 3 months plan, Portable Router)

$119 x 5 = $595

Technology ------------------------ = $2,500 330 x 5 = $1,650 10 x 5 = $50 (sound system, 5 Ipads, & CC Attachments )

$122 x 5 = $610

$128 x 5 = $640

Staffing ------------------------------ = $24,030 (Min. wage $8.90 x 180 hrs x 10 employees) -pop-up store open 3 days a week, 12-5pm everyday, 5 employees each shift

TOTAL COSTS ------------- = $47,165 $167 x 5 = $835


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PROMOTIONAL COSTS Social Media Advertising Instagram---------------------------- $500 Facebook---------------------------- $500

Print Advertising ------------------------------------------$500 Press Release ------------------------------------------$700 Slows BBQ Total 4 Day Catering--------------$14,000 (3,500 x 4)

TOTAL COSTS---------------$16,200


1

WOMEN

TOP 5 ITEMS

$48

4

$118

2

$138

MEN

5

$55

3

$28


TOTAL REVENUE/COGS Conv. Rate

Avr Basket

Revenue

2,925 x 0.40

=

1,170

5,304 x 0.40

=

2,121.6

7,020 x 0.40

=

2,808

Foot Traffic

Foot Fall 0.05

Thursday

5,000

250

X

0.15

=

37.5

X

78

Friday

8,000

400

X

0.17

=

68

X

78

Saturday

10,000

500

X

0.18

=

90

X

78

+

$387

= =

Revenue

COGS

TOTAL WEEKLY

$15,249 x 12

$6,099.6 x 12

TOTAL POP-UP

182,988

73,195.2

AVERAGE BASKET $48 $118 $55 $28 $138

=

COGS

$387 / 5 = 78


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PROFIT/ LOSS Revenue

$182,988 Operational Costs $47,165 Promotional Costs $16,200 COGS $73,195.2 Profit

$46,427.8


w

Mens Assortment

Womens Assortment


Merchandise Map


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FINANCIAL ---

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Cost // Sales Promotion


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SUMMER 2019

Our marketing promotionals are set to appeal to the millenials and streetwear lovers of Detroit.

SHOP | bbq| MUSIC| COMMUNITY 12-5PM THURSDAYS-SATURDAYS 1350 MICHIGAN AVE DETROIT, MI 48226


EMMA

promotion #2 explained POSTER/FLYER?


SPOTIFY

FACEBOOK


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CLOSING ---

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Summary Sources


sources

https://www.carhartt-wip.com/en/service/corporate-responsibility https://www.highsnobiety.com/2016/01/22/shawn-stussy-biography/ http://www.referenceforbusiness.com/history2/77/Vans-Inc.html https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=36149 https://theidleman.com/manual/arrivals/brands/history-carhartt-wip/ https://en.wikipedia.org/wiki/St%C3%BCssy https://hypebeast.com/2017/12/grailed-most-popular-brands-2017 https://www.carhartt-wip.com/en/service/about

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