Executive summary Content Executive Summary
Cost of Pop-Up Shop
About Veja
Profit and Loss Statment
SWOT Analysis
Unit Breakdown
Brand Identity Matrix
Sales Forcast
Company Overview
Produt Plan
Current Distribution
Sources
Current U.S. Footwear industry Price Points Direct/ Indirect Competitors Communication and Promotional Activities Target Market in California
5 years on - The world understands that social issues and environmental crisis are now matters of urgency. Day after day, prophets of all kind are pulling the emergency cord, the entire economy is turning green and sustainable-developementising speeches are spreading around. Actions remain scarce but words abound. Beyond movies about the environment, beyond multinational companies building green windows to hide disasters, beyond the Copenhagen speeches filled with words and political promise‌. Action.
Store Location and Area Attractions
And despite this green-fronted economy, let’s try to offer a different vision which combines fair trade and ecology and links together economy, social initiatives and the environment.
Pop-Up Shop Concept
A vision that proposes cultural change.
Human Resources
Transparency.
SWOT
About Veja...
Veja is a French brand of ecological and fair trade footwear and accessories that was founded in 2004 by Sébastien Kopp and Ghislain Morillion. Born out of the desire for a new kind of sneaker, Veja works with cooperatives of small producers and social associations in Brazil and France. Veja started out as a company with a mission: to “disobey” rules of commerce and prove that a sustainable way of doing business is not in contradiction with making profits. Kopp and Morillon decided to focus on sneakers: a universal, fashion product with conventional methods of production has significant social and environmental impacts.
S
O
- High quality - Customers feel exclusivity, become close and loyal to the brand - Set a distinctive brand aesthetic
- Goes with growing trend on enviornmental awareness - Artisinally made product, no mass production - Brand expansion into areas other than shoes - Comfort becoming a bigger trend, sneakers are becoming consistant in high fashion.
W
T
- Not a well-known brand - Rare Products, not as accessible in many retailers - More expensive than some of it’s competitors.
- Multiple growing brands with similar concepts in the same niche market - The types of materials used for the shoes are more expensive than those used by other brands. - Lack of awarness of sustainable fashion.
Company Overview
pr od
uc t
Brand Identity Matrix
Br an
d
as
a
Brand as a product:
Br an d
as
a
sy m bo
l
Y Tr oun e Ed Soc ndy g D uca ial riv te en d
Br an
d
as
a
pe
rs
on
Br an
d
as
an
or S ga M ust ni in ain za i M ma ab tio Pe od lis le n Ar rso ern tic tis na an l
Shoes: -Sneakers (men, women, and kids) Brand as a person: Young Trendy Social Educated Driven
Brand as a symbol: Fabrics and materials: Organic cotton Low-chrome leather Nubuck leather Wild rubber Expensed rubber J Mesh (Jute Canvas and recycled cotton) Tilapia leather B-Mesh (plastic bottles)
Brand as an Organization: Founders: SĂŠbastien Kopp and Ghislain Morillion Headquarters: France and Brazil -Sustainable -Minimalistic -Modern -Personal -Artistan
Current Distribution
Veja is a privately owned and operated shoe company. It employees few people but has a large network of various suppliers and distributers. While they do not own or operate a brick and morter store, they are available for purchase in 28 countries and territories and can be purchased in over 160 retailers. In the Unites States, Veja shoes can be purchased at Nordstrom, Urban Outfitters, Anthropologie, Need Supply, East Dane, and on Amazon. In additon to global retailers the prodcuts are also available for purchase on the company website as well as the online outlet site for overstock.
= Veja = Veja Kids
The US Footwear Industry
Footwear in the US - Current value sales of footwear increase by 7% in 2015, to reach US$76.1 billion - Sports footwear drives overall footwear sales, thanks to the growing “athleisure” trend - Women’s footwear sees the fastest growth, by 8% in 2015 - Nike continues to lead sales, holding a 19% value share - Footwear is expected to experience a value CAGR of 4% at constant 2015 prices over the forecast period Other footwear brands in Santa Monica market: - Volume of Shoes in Millions of Pairs in North America for 2017 (via Statista) -- 539.3 million (Leather), 270.6 million (Athletic), and 1,645.4 (Other) Revenue in the "Footwear" market amounts to US$86,768m in 2017. - The market's largest segment is the segment "Leather Footwear" with a market volume of US$39,447m in 2017. - From an international perspective it is shown that most revenue is generated in the United States (US$86,768m in 2017). - In relation to total population figures, per person revenues of US$266.33 are generated in 2017. Otther brands/retailers already present in the market: -- Adidas, Foot Locker, Converse, Aldo Shoes, Nike (shoe market). Other brands/retailers in and surrounding the Third Street Promenade
High
Price Points
The Peoples Movement American Rag
Accessibility
The Beehive Grace & Greene Hansen Surf His Hobie Prize of Venice Nordstrom O Koo Ran Piper’s Shoe Parlor Risk Sneaker Boutique Seed People’s Market Shaper Studios Shoebuy Sportie LA Spyder Surf Average Price: 45.99-99.00
Puma
Zumiz Macys Nordstrom Asos Urban Outfitters Amazon Foot Locker Macys Khols JC Penny Average Price: 65-135
Vans
Asos Nordstrom Sears Amazon Sneakerhead Rogue Fitness Finish Line Journeys Average Price: 50-120
Reebok
Asos Nordstrom Sears Amazon Sneakerhead Rogue Fitness Finish Line Foot Locker
Veja
Lou and Grey Urban Outfitters Anthropologie Need Supply Amour Vert Lyst Zulily Nordstrom Average Price: 150-80
Low
Price
High
Macys Nordstrom Zappos Asos Dillards Foot Locker Finish Line Zumiz Dicks Khols JC Penny Average Price: 60-300
Average Price: 50-180
Low
Nike
Adidas
Asos Nordstrom Urban Outfitters Macys Champs Journeys Asos Finish Line Foot Locker Farfetch Average Price: 60-250
Direct Competitors
Indirect Competitors Superga
Supra was founded in 2006 by Angel Cabada, who also co-founded KR3W, a skateboard apparel company. The sneakers were constructed for skaters, but with the use of flamboyant colorways and sleek designs many musicians flocked to the brand. Some of these individuals are Justin Timberlake, Lil Wayne, Travis McCoy, Jay-Z, and the newest addition that stands by the brand religiously is Justin Bieber. Professional skaters that wear Supra shoes are Terry Kennedy who has his own signature shoe the TK Society, Jim Greco, Erik Ellington, Tom Penny, Antwian Dixon and Chad Muska. Chad has also designed the Skytop series, making them his unofficial shoe. Of all the Supra shoes available to date, the Skytop series is amongst the most popular. In 2011, the brand released the Supra Skytop III, which released in various colors from flashy to subtle and using a mix of materials.
Vans On March 16th, 1966, at street 704E Broadway, in Anaheim, California, Paul Van Doren and three partners opened up their first ever store and the Vans dream was born. The Van Doren Rubber Company was unique in that it manufactures shoes and sells them directly to the public. On that first morning, 12 customers purchase shoes which are made that day and ready for pick-up in the afternoon. The Vans #44 deck shoes, which is now known as the Authentic were born. Skateboarders who like Vans rugged make-up and sticky sole are seen sporting Vans all over Southern California in the early 1970s. In 1975, the Vans #95, known today as the Era was designed by Tony Alva and Stacy Peralta. With a padded collar and different colour combinations the Era becomes the shoe of choice for a generation of skateboarders.
Supra In 1911 in Torino Italy, Walter Martiny started the production of rubber-soled footwear branded with the Superga logo. In 1925, his designs expanded to include footwear with vulcanized rubber soles and the Superga 2750 style was born! After the war, Superga restarted operations specializing solely in the production of high-quality footwear. In the 1970’s, Superga diversified to add sport shoes with technical attributes. Now, the collections include a vast array of styles and colors in addition to the original Superga Vulcanized and Sport lines. The 2750 has been an icon from the beginning. Long a favorite for taking Italians from the city to the beach to weekends away, it is easy to wear and designed to dress up casual sportswear. Superga 2750’s can be washed like your favorite jeans to create your own vintage look. Superga celebrates the fun lifestyle of the 2750 by offering a wide range of colors, fabrics, and prints each season for women, men and children.
While strong competition comes from heritage brands, we see even stronger competiton from numerous smaller brands. Veja operates under a more luxurious standard for sneakers. Made from sustainable products and done through a transparent platform, it still has a higher price point then some of the brands it compares to. Superga, Vans, and Supra are the direct competitors and are common, household names that are bakced by stories of triumph that have trickeld down throughout the years. Where as new brands, like Veja, need to fight for that spot in the minds of consumers. The other indirect competiotors are TOMS, New Balance, Soludos, Cole Haan, Fila, and Asics. Their prices range from $50$300.
Communication and Promotional Activities
FACEBOOK: 65,963 LIKES TWITTER: 3,837 FOLLOWERS INSTAGRAM: 55.1 K FOLLOWERS VIMEO: 80 FOLLOWERS, for promotional videos shared in social media WEBSITE: http://www.veja-store.com/en/
Most of Veja’s advertising and promotion is through social media sites. The company has been featured in numerous magazines such as Vouge, GQ and Esquire. They are very active on thier social media sites and their company website, where you are able to access all of their products. They are tansparent with their customers. On their page, you can see how and where they source materials for their products, as well as current look book images. While the products are considered moderatley priced, they allow access to overflow stock or “outlet” products on their main site for people who are looking for quality at an attainable price. They offer free shipping worldwide on purchases exceeding $160. They cater to a more mature demographic. The products are meant for young professionals who are looking to elevate casual workwear. Their modern minimalistic look attracts millenial customers who are looking to differ from common hosuehold names.
Target Market/ Customers in California
Dance Occupation: Instructors Age: 30 and 24 Follower base: 16 k Enjoy cooking, traveling and photography Power to reach into the community Have a large local following and member base
Graphic Design Occupation: Designer Age: 27 Follower base: 16.1k Enjoys cooking, traveling and photography Trend influencer and style intuitive
Target Customer Men and Women aged 20-35. Urban wokrers looking to have versitile style that transitions from day to night. Socially conscious shoppers looking for better products for themsleves and for the enviornment. Average earrnings are between $37,000 to $50,000 with disposable income. Usually live in booming cities but tend to enjoy trips to suburban areas for weekend getaways with friends or family. Have simple taste, and enjoy clean lines with attention to detail. They are aware of what goes into their products and are conscious about how they buy.
Event Planning Occupation: Retail Event Planner Age: 27 Follower base: 5 k Enjoys art, fashion and social media Product promoter and style influencer
Advertising Occupation: Social Media Director Age: 27 Follower base: 11.9k Enjoys art, fashion and social media Product promoter and style influencer
Target Area: Santa Monica California
Store Location
Area Attractions
Location
This area of Santa Monica is perfect for the brand. The laid back lifestyle mixed with the need for more sustainable products makes it the perfect target market. The area is full of tourist attractions, from the Santa Monica Pier to the aquarium, to the central shopping plaza. Footfall in the area is high, including tourists and locals from surrounding areas.
318-332 Santa Monica Blvd Rent is negotiable Property type: Retail Total Space: 5000 sq ft Min Divisible: 800 sq ft Desired: 1000 sq ft
Competition In the direct area, we are near household, heritage names, such as Adidas and Nike. We are near trending brands and direct competitors, such as Supra and Vans. The wide range of stores and prices allows us to fit in the niche market of people who are looking for style at a relatively resonable price. In the area The store is located in the middle of a main shopping hub. In that hub, you also have the Santa Monica Aquarium with the Santa Monica Pier only a few blocks away. The mix of tourists and locals looking for a unique piece will fuel the business.
Pop-up shop concept
Pop-up shop concept While the space is large, it offers the ability to rent out sections of the floor plan. The rent is negotiable and the buidling is already set up as a commercial retail space. All zoning laws will be respected for initial move in. Ideally, we would rent out 1000 sq ft of space, which is around 800-850sq ft for the store sales floor and 150-200sq ft for storage and a break area for the sales team. Keeping in-line with the brand identity, the store will be made of natual elements. Most will be purchased, however, to cut costs and maintain a store as sustainable as possible, the store will recycle from local vendors. We will use a stained concrete floor with contrasting wood floor elements on the sales floor. The white walls will feature full length mirros and shelving units for merchandise. On two walls, there will be full length screens to project scenes of how the products are made and the brand’s story. The focal point of the store will be a metal, standalone shoe rack that will showcase plants and Veja products that will be available for purchase. Ample seating will be available for customers as well as an organic juice and snack bar, stocked with products from local vendors.
Pop-up shop concept
The renders for the shop will feature all of the elements that are apart of the brand image and company culture. From the fresh grenery, recycled wood beams and floors and unique, one-of-a kind metal work center piece, housing products and plants for purchase. The stores key features will be an organic juice bar and snack wall with products from local vendors, as well as a “magic mirror�. This magic mirror will allow the customer to select the shoe they want to try on, if not offered in the shop and then see themselves virtually in the shoes. We will carry small leather good, shoes and bags in store and will allow purchases from online in store. The store will be filled with natural elements and sounds. On two corresponding walls there will be screens to display the brands story and how the products are made.
Profit and Loss Statement
Human Resources Employee Break Down - Store Manager: $14/hr - Assistant Manager: $12/hr - Key Holder (2): $11/hr - Sale Rep (2): $10.50/hr
Store Manager Assistant Manager
Key Holder Key Holder Sales Associate Sales Associate
Veja Fair Trade S.A.R.L. Annual Profit & Loss In Millions of Euros 31-Dec-2015 (est.) 31-Dec-2014 31-Dec-2012 31-Dec-2011 Period Length 12 Months 12 Months 12 Months 12 Months Filed Currency EUR EUR EUR EUR Exchange Rate (Period Average) 0.91736 0.753374 0.778237 0.71919 Consolidated No No No No Total revenue 8.4 7.9 7.4 7.3 Net sales 8.4 7.9 7.3 7.2 Other operating revenue 0 0 0 0.1 Total operating expenses 9.6 8.3 7.2 7.9 Wages and salaries 1.2 1.1 1 1.1 Pension expenses 0.4 0.4 0.4 0.4 Operating income -1.6 -0.4 0.1 -0.7 Income before tax -1.4 -0.4 0 -0.7 Net income -1.4 -0.4 0 -0.6 Comparitive Net Income in USD In Millions of USD 2015 (est.) 2014 2012 2011 -1.3 -0.3 0 -0.4
Cost of Pop Up Shop Interior Fixtures Units Cost $ Total Cost $ Plats and greenery 80 TBD Paint Job 8 22.5 180 Ceiling Beams 72 18.06 1300 Lighting Fixtures 48 (6 pck) 340 56 Chairs/ Benches 5 1-200 700 Entry Table 1 500 500 Juice Case 1 2500 2500 Metal work wall 1 1800 1800 Flooring (Cement Stain) 4 26.98 107.92 Flooring (Wood) 10 x 2.79 = 27.90 70 x 2.79 = 195.30 223.20 Cashier Desk 1 875 875 Register (iPads) 2 422.94 845.88 Square (iPad Checkout) 2 105.95 211.89 $9299.89 Fixed Costs for the store - Rent: $2100 - Utilities: $150 - Supplies (basic): $60 - Other (plant supplies, store maintience): $60 Total: $2370
Communication and Promotional Planning For promotional activities we will stick to what the brand is known for. While the store itself will cost a good portion of the budget, promotions will have to be minimal and inexpensive. From research conducted through online data bases, we can infer that the area is generally made up of 25-35 year old working class professionals. These professionals are generally experiencers and innovators with some disposable income, and they are looking for a good product with an experience and a backstory. We want to inform this group of people by reaching out to them on their main social media platforms. Reaching out through Facebook, Instagram, Twitter, Snapchat and Vimeo will be our main platforms. Our launch date is June 16th and we will be holding a launch party that Friday, June 18th, in the store. To encourage footfall we will be reaching out to bloggers and fashion critics with hand written messgaes and a private product pre-sale to encourage buying from their followers. During the party, we will have guests sign-in with their name and email, and they will recieve thank you letters following the event. During our post-launch, we will be continuing to build brand hype through social media sites. Launch Party
Launch Party Budget: Budget will be around $3,000 including food, drinks, and entertainment. Lauch Part Date and Time: Friday June 18th, 4-8pm at the Veja Pop Up Shop. Guest List: Bloggers and celeberities will be notifed about the opening event and special pre-sale. The launch party is where bloggers and celeberitites will be able to post and share products to build hype. Pre Launch May
Launch June
Post Launch July/August
Twitter Facebook Instagram Vimeo Snapchat
All free and done by store managers and company officials
Unit Breakdown Focus Product Category: Shoes Planned Purchases, Retail: $484,723.0 Sizes Total % Purchases $ Classification: Shoes/WOMEN Total % Purchases $ 5 5% $24,236 V-10 20% $96,945 6 15% $72,708 Esplar 15% $72,708 7 20% $96,945 Esplar 3 10% $48,472 8 22% $106,639 Holiday 20% $96,945 9 10% $48,472 SDU 15% $72,708 10 12% $58,167 11 10% $48,472 TOTAL 80% $387,778 12 3% $14,542 13 3% $14,542 100% $484,723 Price Range Total % Bags Total % Purchases $40-$99 25% Mini Soleta 12% $58,166.76 $100-$199 60% Traveler 5% $24,236.15 $200 - $299 10% Cartable 3% $14,541.69 $300 - $310 5% 100% TOTAL 20% $96,944.60
Sales Forcast
Product Plan
V-10
The V-10 is the classic staple shoe. Easily wearable for work or lesiure.
Esplar
The Esplar is for the more casual customer looking for an everyday classic look.
Esplar 3
The Esplar 3 is the fashion forward sister of the Esplar. A playful rendetion on a classic.
Holiday
The Holiday shoe is for the more active soul. The customer tends to be on-thego often.
SDU
The SDU is the adventurer. Patterned fabric gives this shoes unique life.
Size 36-46
36-46
Product Plan Retail $153.46
$104.78
Units 204
153
36-46
$116.42
102
36-46
$115.36
204
36-46
$104.78
153
Mini Soleta
Mini Soleta is the small card wallet. The perfect gift.
Traveller
The traveller is the larger, more luxurious wallet. More for the fashionista
Cartable
The Cartable is the essential work bag. Made out of sturdy vegan leather, and silver hardwear.
Size
Retail
Units
One Size
$41.28
122.4
One Size
$137.59
51
One Size
$306.92
31
We are offering a variety of shoes, steming from the classics, and finishing with the more fashion shoes that will have prints and exoctic, sustainable leathers. While the brand is reputable for its shoes, we find it necessary to carry shoes, bag and small leather goods. By only carrying one product category, you eliminate a large group of people who want to buy smaller products and not splurge on bigger purchases. These small goods have a higher conversion rate then the shoes so it is crucial to offer them in the store.
Sources
esri.com census.gov onesource.com euromonitor.com PRIZM VALS vans.com veja.com supra.com superga.com
Pop-Up Shop Team
Suzanne Brady Carolina Ginorio Frank Sessa Special Thanks: Daniela San Andres