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LONDON - HEATHROW RETAILING INITIATIVE Perri Rothenberg & Jenifer Carmichael FASM 415 | Roy | Fall 2014


EXECU TI VE S U M M A RY Net-A-Porter, the world’s first premiere Luxury Online Retailer currently ships to over 170 countries worldwide. They develop bespoke technological solutions to optimize their innovative business , and are constantly pushing new ideas to keep their company on the forefront of the digital domain. Since their website is viewed over 2.5 million times by women each month, we felt as though there is a strong opportunity for this pure-play retailer to enter a “brick-and-mortar” virtual space that is in parallel to their values. After extensive research most surveys of travel kept falling back to London Heathrow International Airport, and even more specifically terminal 5. Terminal 5 greets nearly 20 million passengers annually from every corner of the globe. This airport does not only have the capacity for an abundance of travelers, but they are also changing the way airports do business. In the past years Luxury fashion has made its way to the airport considering the affluent clientele and the ability to collect extensive data from passengers going in and out of this space. The initiative being proposed is opening a digital, interactive wall that engages customers in technological innovation through a new shopping experience. By utilizing 3D digitialization, this initiative will allow customers to interact with a pure play retailer in a virtual world to help redefine NetA-Porter’s relationships with their customers by raising brand awareness. This helps push

the overall goal of improving advocacy by recommendations that take place offline to bring customers online. We will focus on creating a visual space focused on 60% handbags and 40% shoes considering the popularity of these products in airports. This initiative will help leverage Net-A-Porter’s business which is now represented by 60% RTW, 20% Shoes and 20% Bags & Accessories. Aller-A-Porter (the name of this new digital store) will be placed in some of the worlds most successful retail airports worldwide annually until 2018. These airports include Tokyo, Hong Kong and Amsterdam International Airport to emphasize a seamless, worldwide experience no matter where a customer is in the world. Since airports are congested with many luxury brands, strategizing an initiative that is new and interactive to traveling customers sparks encouragement to shop on Net-A-Porter. One major strength of AllerA-Porter is there is no limits to the products we can carry in the store. The 3D technology will allow customers to experience the product virtually, link them to the Net-A-Porter website where they can then wander to their gate and shop while they wait for their flight to depart. In other stores, customers must spend time with sales associates and then carry their products throughout the airport. Net-A-Porter promises a timely delivery no matter where the customer is heading to.

KE Y SUC C E SS FAC TOR S

Engaging customers in 3D Digitalization. Improving advocacy through word of mouth brand recommendations that take place offline. Redefine relationship with customers to become more interactive.

CON TRI BU TO R S

Globalization and brand awareness by creating more unique visitors Innovate and digitize collections to make products accessible for a generation engaging in

Perr i Ro thenbe rg & Je ni fe r Ca rm i cha e l Non-tradition a l Re t a i l i ng | FA S M 4 1 5 Roy | Fa l l 2 0 1 3

technological innovation


CON TEN TS

ABO U T N ET-A-PORT E R

TH E NEW STRATEGI C I NI TI ATI VE

MAR KE T ANALYSIS & TAR GE T C ONSUME R

C OMMUNICATION, PR OMOTION & FINANC IAL PL AN

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22-35

44-61

History

Key objectives

Size of Market

12-18 Month Strategy

Achievements

Rationale / Justification

Key Players

Omni-Channel Initiative

Growth Plans

Plan for Execution

Direct Competition

Pre-Launch / Launch / Post -

SWOT

Long Term Benefits

Indirect Competition

Launch Promotional Activities

Positioning

Target Consumer

Budget for Execution

Merchandise

Demographics

Sales Forecast

Distribution

Psychographic / Behavioral

Projected Income Statement

Communication Promotion

[ Appendix / Bibliography 62-72 ]


COMPANY SUMMARY

ABOUT N ET-A-PORTER.COM

History

Net-A-Porter Group Limited is the world’s premier online luxury fashion retailer. It was launched by Natalie Massenet in June of 2000 as a limited liability company registered in the state of New York. Their website is presented in the style of a magazine, which is updated weekly. They offer the style-savvy customer exactly what she wants. by giving customers access to the hottest looks of the season from international labels via worldwide express delivery. Net-A-Porter’s business is unrivaled, they launched men’s site, Mr. Porter, in 2011 and The Outnet in 2008. They turned in a profit for the first time in 2004 selling to Swiss luxury goods holding company Richemont at a value of $533 million in 2010. They currently ship to over 170 countries, with free shipping in the USA within 3-5 business days. Their website is viewed over 2.5 million times by women each month, 10,000 of whom are new customers.

Achievements Growth Plans SWOT Positioning Merchandise Distribution Communication Promotion

Net-A-Porter is an innovative business. They develop bespoke solutions to technological advances, and are constantly pushing new ideas to keep their company on the forefront of the digital domain. Net-A-Porter is constantly refining the logistics of their business. They have offered express service since day one and want to take it to the next level. They are offering sameday shipping to Hong Kong and expanding their New York same day shipping outside the five boroughs and parts of New Jersey. FUTURE PROSPECTS / GROWTH Net-A-Porter will explore children’s wear next. They have domain name “petite-a-porter.com” registered. Net-A-Porter has no plans to open up showrooms or stores. Alison Loehnis tells Mashable “We are an e-commerce business, all the stuff we have ahead – it’s all product proposition.” They are also actively seeking growth in Asia-Pacific, U.S., Europe, Russia and the Middle East.

SWOT ANALYSIS

S TR EN GTHS Net-A-Porter’s strengths include a strong celebrity and fashion mogul following, presence within social media, international recognition, progressive retail service including an interactive magazine and TV, convenient one stop shopping concept, great customer service with style advisors, premier shipment offers, and exclusive designer merchandise with high product quality and brand recognition. Other great strengths that attribute to their success is personalized emails through ones account, customer control through classification and filters, accessibility to their magazine, blog, and social media sites. Their digitalization strategy allows their global customer who focuses on luxury fashion to access Net-A-Porter in over 170 countries. (Net-A-Porter BlogSpot) W EAK N ES S ES Net-A-Porter’s weaknesses include no customer interaction, and the fact that customers can not feel or see the product. Instead they rely on the Net-A-Porter stylists and customer reviews. They are also relatively new to the fashion industry with consumers still adapting to the luxury online retailing concept. OP P ORTU N ITIES Opportunities for Net-A-Porter are quite strong. They have already reserved the domain name “petite-a-porter” to dabble into the children’s wear industry, along with their growing men’s market within Mr. Porter. Net-A-Porter can also collaborate with designers for exclusive product within their website. THR EATS Main threats for Net-A-Porter include a strong competition with brick and mortar stores that offer the same products including Barney’s, Neiman Marcus and Saks Fifth Ave. Not to mention other online luxury markets (Farfetch), and Moda Operandi which offers online trunk shows.

CORE VALUES Be the best | Lead not follow | Exceed expectations | Smart and stylish | Service starts with yourself REVENUE & GROWTH PROJECTIONS According to the Mail on Sunday, Net-A-Porter experienced a 55% rise in sales in 2012, from £238 million to £368 million. The site made a loss of 27 million following investments in the business with their purchase of Asian online fashion dealer Shouke for 6.6 million, which has aided Net-A-Porter crack into the Chinese market. 22 million was spent on setting up automated distribution centers in the United Kingdom and United States. This expansion has led to a near double of employees. Net-A-Porter ’s business now encompasses 60% ready-to-wear clothing, 20% shoes and 20% bags with an annual turnover of 120m. The average order on Net-A-Porter is 500 but the VIP customers who make up 1% of their business account for 20% of their sales.

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AVERAGE LOW PRICE BY CATEGORY (BAGS, SHOES, ACCESSORIES & SLG)

POSITIONING IN THE MARKET Net-A-Porter’s positioning in the market is very competitive in the luxury marketplace. Not only do they offer premium retailers, they are one of the only pure play retailers that offers products to 170 countries world wide. They offer on average the third most expensive, and seventh least expensive products between handbags, small leather goods, shoes and accessories on other e-commerce sites such as Moda Operandi (with the most expensive product, Hermes) and Nordstroms which offers the most least expensive product (socks). Although they are best in class in terms of international shipping, they are not as accessible as their counterparts who have many brick-and-mortar spaces such as Neiman Marcus and Bergdorf Goodman. Net-A-Porter has positioned themselves in a market to appeal to the top 1% of luxury spenders, along with customers who are interested in similar brands who do not shop as frequently. Their “Edit� has made them emerge from the crowd by recognizing innovative trends and thinking while shopping straight from their beautifully executed magazine.

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Pricing is based on November 2013 products offered on online platforms. Average prices are based on Bags, Small Leather Goods, Shoes, and Accessories. Net-APorter offers an average low price of $57.75, and an average high price of $13,457.50. They are placed the 3rd average high price retailer and the overall average low cost retailer. This shows Net-A-Porters wide product and price assortment in relation to its competition. Net-APorter offers products for every aspect of the luxury market thus appealing to a larger market consumer. With that being said, they are 1 of 3 pure play retailers polled out of 15 direct competitors. Jeffery does not offer ecommerce, therefore was not averaged in average prices.

 















  AVERAGE HIGH PRICE BY CATEGORY (BAGS, SHOES, ACCESSORIES & SLG)                        

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MERCHANDISE DETAILS (PRODUCT / CATEGORIES)

PRODUCTS OFFERED

Net-A-Porter carries over 300 popular brands from around the world. The products vary in price, style and popularity, which help capture a large customer base. The large variety of brands and pieces keeps the site from becoming too cluttered or losing the original vision. While the store carries most major high-end designers from Alexander McQueen to Zac Posen, it also features lower-end brands like Alice + Olivia. Net-A-Porter does not have its own private label, but the company is constantly working with designers to offer them an exclusive distribution channel for limited edition collections. Net-APorter is known for their exclusive offerings and quick access to runway looks that can only be found on their site.

CLOTHING: Activewear, Beachwear, Coats, Dresses, Jackets, Jeans, Jumpsuits, Knitwear, Lingerie, Pants, Shorts, Skirts, Tops HANDBAGS: Backpacks, clutch bags, shoulder bags, tote bags, travel bags SHOES: Boots, Pumps, Flat shoes, Sandals, Sneakers ACCESSORIES: Belts, Books, Collars, Fine Jewelry, Gloves, Hair Accessories, Hats, Homeware, Jewelry, Key fobs, Opticals, pouches, scarves, stationary, sunglasses, technology, travel, umbrellas, wallets, watches LINGERIE: Bras, Briefs, Camisoles and Chemises, Corsetry, Hosiery, Lingerie Accessories, Robes, Shapewear, Sleepwear BEAUTY: Bath and Body, Cosmetic Cases, Fragrance, hair care, Makeup, Nails, Skincare

The fashion industry is known for short product life cycles. Consumers are concerned about being “in season�, so garments don’t sell past the season. Net-A-Porter’s merchandise falls into this product category and their products are current with the time and last longer then fads but shorter then basics. Although the designers may offer similar products on the site, the color and material change with current trends. Net-A-Porter’s products experience a steady growth when they are introduced but typically see a sharp decline once they reach their highest sales. Their products can also be categorized in specialty goods. They are luxury items, which are, based more on want rather then need. They don’t offer many basics and could easily add basic fashion and basic accessories, which would help extend product life cycles that last longer, then the season.



Brands: Alexander McQueen, Bottega Veneta,



ChloĂŠ, Christian Louboutin, Dolce & Gabbana, Donna Karan, Fendi, Givenchy,

   

Gucci,





Isabel Marant, Jimmy Choo, Lanvin, Missoni, Miu Miu, Oscar de la Renta, Saint Laurent, Stella McCartney,

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Valentino


CURRENT DISTRIBUTION

NOITUBIRTSID TNERRUC

CURRENT DISTRIBUTION

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E-COMMERCE Net-A-Porter’s home has remained on the Internet, with all transactions completed through the website. Retailers can experience many advantages by having an online storefront instead of a traditional brick-and-mortar store. Online retailers are able to save a lot of money on store construction, leases, maintenance, and sales personnel wages. They are also accessible anywhere and anytime. Net-A-Porter has created an online experience that the customer enjoys. With a plethora of rich selling tools that include zoom, 360 degrees and runway videos, they have given the consumer a reason to shop online. This is currently their only way of distribution because this is what works best for the company. APP FOR IPHONE AND IPAD Net-A-Porter has an easy to navigate m-commerce app available for iPhones and iPads. This app allows consumers an accessible shopping platform that is available at all times. The iPhone app has had 750k downloads and a rating of 4+ in the iTunes store. In 2013, the sales on mobile devices reached 30% of total sales (Massenet). The iPad has had 237k downloads and has won two E-consultancy awards and has a 4+ rating as well (Net-A-Porter ). The home page is simple with a picture of the product category you would like to shop in. Once you click which category, it allows you to choose a sub category. For example if you click clothing, the next page has categories including coats, dresses, jackets etc… Upon clicking the sub category, you are immediately brought to a clean display of products including the image, brand and price. This is all the real important information a consumer looks for when shopping. Once you click on the product of your choice you are able to view extra information, details, editors notes, size and fit, as well as access to other products from the same brand. Net-A-Porter has created an app that uses tab navigation. The use of a tab navigation bar of a website gives the user a set of individual sections that can be accessed at any point of their usage. The options include Shop, Wishlist, Shopping bag, and More/Account. This system really suits a goal-oriented shopper. They also use icons, which help guide users through all the different shopping channels. They have kept their interactions low so that their customer doesn’t lose focus and fail to make a purchase. Net-A-Porter has created an intuitive design, fun to use, and functional app.

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NETBOOK APP Net-A-Porter has extended their access to their e-commerce site through the development of their new mobile app. “The IOS app is based on the ‘LIVE feature that sits on the site’s homepage and acts like a carousel ticking through the latest products that customers have purchased” (Moth). The new app is an attempt to give customers an online identity on Net-A-Porter , which creates an additional social layer to the site and makes the recommendations more powerful. Once the profile is created, users can create a wish list within the app by ‘loving’ different products and also ‘admiring’ what other users post. While the Netbook is currently invite only, bloggers, stylists, designers and other fashion gurus have been invited by Net-A-Porter . Net-A-Porter is limiting the number of people who can use the app so that any technical issues can be easily fixed as well as create exclusivity, creating a more appealing feature to the consumers. (Moth) The Netbook consists of five tabs that allow you to browse the product suggestions and manage your profile. There is a real time list of the Net-A-Porter products that people are ’loving’ within the app. The feeds are distinguished by the admiring feed, which is people you follow, and the unfiltered feed which is everyone else in the world. “This is where the app has the most potential for increasing sales, as if a well-known stylist or model ‘loves’ a pair of shoes then that endorsement will likely influence the purchase decisions of other users” (Moth). As well as acting like a social network based on product recommendations, the app also allows transactional use so consumers can buy the items they love most. The product pages are very similar to the desktop site

and include several large, swipeable images. The checkout process is hosted online rather then with the app, which means it doesn’t show delivery details in the shopping bag. The process is pretty slick and it doesn’t result in the user having to reopen the app after the checkout. The app is very user friendly and is exactly what a Net-A-Porter consumer should expect. They have truly found success in creating an enjoyable networking app that has commerce at its heart. [ http://storify.com/Spagnucco/Net-A-Porter-1

POP-UP SHOP In 2013 Net-A-Porter broadened it’s efforts by devising a digital and physical promotion to launch its exclusive partnership with Karl Lagerfeld. Consumers in Paris, London, New York, Berlin and Sydney were given the opportunity to view the new Karl collection by decorating storefronts with images that could be scanned using a special iPhone or iPad app. This took place during Fashion’s Night Out allowing Net-A-Porter to be innovative and participate in the excitement of the event. Consumers were able to shop on the go from their mobile device. Also, on January 27th, a pop-up shop opened in the West Village showcasing the products in person. This temporary boutique, designed and produced by Shiraz Events, brought magnificent products, technology installations and displays.

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CURRENT COMMUNICATION & PROMOTION CURRENT COMMUNICATION & PROMOTION and style-related quotes. They integrate the corporate content fluidly within the personal content that’s others post so that they are not viewed as a sales pitch. Also, on Net-A-Porter facebook you can click the ‘what’s new?’ section and comment and share the new products on your facebook.

CURREN T COMMUNICATION Net-A-Porter continues to satisfy the woman’s desire for unique product. Their success in other international markets is due to their variety of products that are culturally relevant, accessible and desirable. They provide this desire by basing the concept of their ecommerce site as an online fashion magazine from which readers can immediately make purchases.

INSTAGRAM Instagram has 501,000 followers and 1,915 posts. They mainly use their instagram to upload images of products, magazine images, exclusive products and images from travel. The majority of the images get about 14,000 likes. The images uploaded to instagram also appear on Facebook and Twitter so all of their fans see them despite which social media platform they are using.

SOCIAL MEDIA: Net-A-Porter’s media presence is described as a word of mouth on steroids and emphasizes that as the use of smart phones and tablets increase, the role of social media in marketing will rapidly expand. Net-A-Porter is present on twelve social media platforms, which have combined an audience of 2.6 million people. The key platforms include Facebook, Twitter, Instagram, Pintrest, Youtube and Google+. The way that the company interacts with audiences on each platform is very different.

TUMBLR Net-A-Porter’s use of Tumblr is extremely inviting. Not only is their homepage filled with exciting photo shoots and products, but it also has direct links to the e-commerce website, their magazine, The Edit, their fashion fix and the apps as well as all other social media platforms.

TWITTER Net-A-Porter currently has 533,000 followers and 17,000 tweets. They mainly use Twitter to announce news and they also often use it as a way to provide customer care. They tweet about 20 times a day with very few direct links to their website. They post a lot of tips and questions that provide followers with interesting, relevant fashion information that fits the brand appropriately.

PINTEREST Net-A-Porter Pinterest has 51,700 followers and 2,398 pins. They have divided their pins up into 32 boards all dealing with the runway, the body, their magazine and other trends. Each board has 30+ pins with engaging imagery.

FACEBOOK Facebook has 1.1 million likes and 18,000 people are talking about them. They post about 2 to 4 times a day with a varying amount of ‘likes’ on each post. Facebook primarily posts inspiration images with story driven content

GOOGLE+ Currently 610,500 people are following NetA-Porter in Google+. Their posts consist of product images from instagram, promotions and ‘find your style’ pictures. Net-A-Porter is 16

on top of this platform although it is not very popular. YOUTUBE Net-A-Porter uses Youtube, to showcase interviews, with designers and celebrities. They recently uploaded a video on how to style coats and makeup master class. It is a regular video blog to keep all fashionistas in the know. VINE Net-A-Porter doesn’t currently use Vine itself, however, fashion label Matthew Williamson has joined the Net-A-Porter social team and during London Fashion Week posted a few videos. This fits well with the brand because it is showing the world a preview without being a straightforward sales pitch.

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DIGITAL MAGAZINE: THE EDIT The Edit is Net-A-Porter’s unrivaled luxury digital magazine, published weekly. It has stunning magazine content with a shop-able digital format. The 52 weeks worth of content includes fashion, beauty, travel and interviews. Because they have international consumers, it is published in four different languages. The magazine offers high-impact advertising placement offering extreme brand exposure, the largest digital ad format available in the market and links right to the brand’s page on Net-A-Porter.com. (NetA-Porter). Net-A-Porter ’s vision for The Edit is to create a new, innovative women’s fashion magazine with a global perspective. They deliver editorial integrity with all key fashion brands, whether they have them in store or not. The magazine was created to fit into the context of the reader’s life: showcasing fashion, watches and jewelry, beauty, travel, culture parties and people (Net-A-Porter ). OUT-OF-HOME ADVERTISING In August, Net-A-Porter offered same day delivery service to customers in the Hamptons. They advertised this by flying planes over the area with banners. They partnered with Standard Hotels’ private air charter service to make these deliveries possible (Shea). They were likely to catch the attention of Hamptons-goers because many of the women are on vacation. “Our women in the tri-state area spend their summer weekends out in the Hamptons and we started to notice where things were getting shipped,” Allison Loehnis, president at Net-APorter , said (Shea). This service was also promoted through an email campaign that was sent out to its customers. “Flying over the Hamptons in the summer, and especially the coast, makes for a captive audience of potential consumers of luxury brand clothing that fit the right target demographic for Net-A-Porter,” said Chuck Mascola, president of Mascola Group, New Haven, CT (Shea). This aerial ad also promoted engagement with the brand via social media with the excitement of photos and videos.

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Net-A-Porter target Chinese consumers with an out-of-home advertisement on a Hong Kong tram vehicle. Hong Kong is known for its many outdoor advertisements however; Net-A-Porter wrapped an entire train in their advertisement to make it stand out. “Net-A-Porter has expanded into the China market very gradually and deliberately, and in many ways, it is at the right place at the right time,” said Avery Booker, vice president of marketing at Bomoda, New York (Shea). An outdoor ad can be more aggressive than other ads, Net-A-Porter is utilizing mass transit and engaging younger, English-speaking Chinese consumers who may better understand the Western ad strategy. In addition to having the retailer’s name on the tram, the side also reads, “Shop anytime, anywhere – the latest in designer style, delivered straight to your door” (Shea). DIRECT MARKETING Net-A-Porter has best in class emails that do an excellent job of curating editorial fashion content that inspires consumers to click through their email and shop. Their emails are sent out twice, Monday-Friday, and personally invite you to check out what’s new for you. This has increased their conversion rate (Chaffey). They also show all of the latest arrivals by your favorite designers. You can select your designer preferences ahead of time so that the emails are relevant and effective. Not all consumers can afford to shop at Net-A-Porter but it appeals to the aspirational customers. “The company sends out around 300,000 emails a week. Email drives 32% of Net-A-Porter’s sales and generates more than £1m in revenue each month” (Chaffey). [Direct mail catalog to loyal customers] MAGAZINES Elle Magazine brought 1,200 products from NetA-Porter as part of an advertising agreement. The products are indexed in an online retailer environment similar to the one on the Net-APorter site. You can search and filter products

by category and the product pages are fairly simple featuring only a small image, description and a prompt to buy (Indvik). When you click to buy, it brings you to the product page on NetA-Porter where you can add the item to your cart in your size. To promote this, Elle released six lookbooks that featured only products available on Net-A-Porter and chosen by the Elle editors. The lookbooks were promoted in the shop and on the Elle.com homepage. There were no disclosures about the advertiser relationship at play in the lookbooks. This integration converted Elle’s online readers into Net-A-Porter shoppers. GOOGLE TELEVISION: Net-A-Porter has new exciting fashion entertainment created specifically for Google TV. You can now watch and shop all of their videos. The channel is composed of runway shows, exclusive designer interviews, photo shoots and trend reports. The viewers can comment, embed and like all of the videos, which results in highly interactive and engaging experience. “Since the launch is all about being social, sharing the content and having a unique experience, I think it will certainly add value to Net-A-Porter,” said Christopher Dessi, managing partner at Drive Action Digital, Wayne, NJ“ (Luxury daily). Net-A-Porter TV is available on mobile devices and the iPad. It is currently that first “tcommerce” experience available in the United States. The new channel was promoted using a Facebook contest for a chance at a $3,000 shopping spree. Fans were given a daily clue with answers to be found on the TV and those who retrieved all the answers had to email them in to win. Consumers may not be comfortable enough to purchase luxury items via the TV, but they are splashing into a new vehicle.

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NET-A-PORTER LIVE CO-OP ADS ON FASHION SITES Banner Ads: Net-A-Porter delivers flash banner ads on websites such as:

Net-A-Porter live allows you to see who else is looking at the products you are looking at around the world. They have been pushing content as a commerce driver and are now offering real time, location based e-commerce that’s very interesting. You can see how many people around the world are browsing the site with you as well as what they are adding in their carts, to their wish lists, or sharing through social media. If you see something that you like you can click on it and order it or share it.

ELLEUK.COM VOGUE.CO.UK ELLE.COM/FASHION STYLE.COM GALMOUR.COM VOGUE.DE VOGUE.FR VOGUE.COM

FUTURE IMPLICATIONS In February 2014, Net-A-Porter is bringing together editors, writers, stylists and photographers to produce Porter, their new publishing division. “The name Porter has a strength, wit, elegance and intelligence that speaks perfectly to the modern female audience and yet it has a timelessness to it that feels as if it could have existed for decades,” said Yeomans, describing the Porter woman as “strong, stylish, intelligent and adventurous” (wwd). The reach of Net-A-Porter will offer the reader the experience and service that she has come to expect from the brand. It will be published six times a year and have a global distribution at newsstands via subscription. The magazine will be sold via traditional channels including travel outlets, bookstores, and independent news agents. They plan on communicating with their 1.3 million-strong email database to offer the subscription opportunity to pre-order the issue (NetA-Porter ). Catering to consumers of all ages, the magazine will also be available digitally through the iTunes store.

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NEW STRATEGIC INITIATIVES Key objectives Rationale / Justification Plan for Execution Long Term Benefits

KEY OBJECTIVES The key objectives of the Net-A-Porter Digitalized Store at London Heathrow International Airport is created to define the following: + Engaging customers in 3D Digitalization. + Improving advocacy through word of mouth brand recommendations that take place offline. + Redefine relationship with customers to become more interactive. + Globalization and brand awareness by creating more unique visitors + Innovate and digitize collections to make products accessible for a generation engaging in technological innovation 1. ENGAGING CUSTOMERS IN 3D DIGITALIZATION The premise for this initiative is inspired by the concept of “clickable things” which directly relates to the idea of the internet of things. This enables the use of mobile devices to ‘click’ images and objects in the real world. Tesco created a digital storefront in the South Korean Metro where consumers are able to shop for home delivery groceries by simply clicking pictures of grocery items on the metro wall. Technology is not far away from allowing mobiles to recognize 3D objects, which is what Net-A-Porter is trying to achieve. Net-A-Porter is often the innovator or bespoke technological solutions; the idea of integrating 3D technologies, interactivity and mobile shopping creates an opportunity for Net-A-Porter to create a real world connection. This ingenuity in the retail experience will “assist in identifying how consumers will shop specific categories so they can optimize marketing, product and visual variables to better position products in the decision hierarchy.” (Vision Critical) This will help Net-A-Porter follow the path of the consumer to provide framework for engaging consumers with three dimensional, virtual products. Current virtual shopping technology works similarly to online shopping interfaces except the product is on a mimicked shelf just like a real life store. Today’s virtual testing application technologies from a Deloitte Consulting Report “Making Shopper Marketing Work,” allows realistic scenario testing of merchandising, product and promotion designs and layouts. When comparing 2D and 3D products, the 3D environment leads experiencers to pick up more products, they also engage in the activity longer. Customers viewed 8.5 products > 5.1 to 2D technology and spent an average of 8% more. This initiative will engage customers in a new creative landscape that will help understand the way in which consumers adopt an idea connected to media and virtual technologies.

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IMPROVING ADVOCACY THROUGH WORD OF MOUTH BRAND RECOMMENDATIONS THAT TAKE PLACE OFFLINE. Word of mouth is becoming a broader use than social media. Offline advocacy is a way Net-APorter will engage customers through this digitalized space. One Admap article suggests that brands may find it easier to target individuals they know are heavy engagers of the brand to spark word-of-mouth initiatives. These heavy users are said to be more likely to become advocates and have high social value to Net-A-Porter . Net-A-Porter strives to fulfill customer expectations if they expect to generate promotion. InSites consulting recommend the ‘4C’s’ for generating word-of-mouth. These include Customer experience (online) conversation, content, and collaboration with consumers (in this case the interactivity the digitized store represents). Net-A-Porter creates a high customer experience from every aspect of their website. They have a global rank of 2,797 relative to other sites (Alexa). Their content ranges is extensive ranging from relative content in relation to their customer, along with an engaging shopable magazine. Net-A-Porter ’s conversion rate increased after cutting emails from 10 per week to 2. The company says 32% of Net-A-Porter’s sales generates more than GBP 1 million monthly. The collaboration with consumers would be driven by the steps Net-A-Porter puts in place to encourage engagement with the store and social media platforms. The data collected by this initiative will encourage personalized communications. According to WARC trends, consumers are more welcome to personalized communications when they are in ‘shopper mode’ in which 45% of shoppers are happy to receive personalized ads and offers (Deloitte). This virtualized store will help to build and expand the personalized multichannel customer experience to understand the ultimate needs and listen to customer responses. REDEFINE RELATIONSHIP WITH CUSTOMERS TO BECOME MORE INTERACTIVE Net-A-Porter plans to redefine the relationship in the way customers are engaging the site, along with the window shop. Mobile technology can help retail brands boost sales and learn more about the customers. According to WARC, the rise of tablet and smartphone ownership has made “multi-screening” a significant trend in media consumption. Digital devices often enable multitasking. In the UK 86% of consumers say they ‘dual screen.’ Tablet penetration is rather similar across age groups, Delloite’s ‘State of the Media Democracy’ report found that tablet ownership peaked in the 35-44 age group; the same age group the new strategic initiative of Net-A-Porter . Since Net-A-Porter is a pure-play retailer, engaging customers on a ‘second screen’ can open up an opportunity to create companion content in addition to their website to augment the overall viewing experience. Since 70 million passengers pass through London Heathrow International Airport annually we will put forth a strategy to optimize the way in which the target audience is likely to engage in the digitized storefront. Second screen marketing will be an effective tool for Net-A-Porter to enhance their ROI. It brings the experiencers online thus creating a number of new opportunities to keep them engaged on Net-A-Porter after they walk away from the store. Building a smart content strategy that emphasizes a seamless engagement between the store and the Net-A-Porter will lead customers to the path to purchase.

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GLOBALIZATION AND BRAND AWARENESS BY CREATING MORE UNIQUE VISITORS Airside retail is now a highly lucrative, which is a core component of a successful luxury strategy. This initiative increases sales and brand awareness. “At an airport you have the best customers. Ten, fifteen, twenty million customers going past your door every year and they are 60 percent AB’s,” said Collie, using socio-economic classifications developed by the NRS (National Readership Survey) in which A’s are upper middle class and B’s are middle class. “[Luxury brands] had been buying posters at airports around the world for years, buying the back covers of in-flight magazines stuck in a seat in front of somebody and now they had the opportunity to put their product and staff in front of them” (Mellery-Pratt). Instead of putting a staff and product into the airport, we plan to go a step further and use the latest technology to present the quality of our products and the brand that we represent. Not everyone in the world is aware of Net-A-Porter , but now whoever passes through terminal 5 will see the attention the store gets by consumers from all Geographic’s. If travelers are passing through quickly, they will wonder what the crowd around the screen is looking at and will be drawn into the excitement. The store being digital will make people aware of the brand and most will either lookup the store or participate in the interactive store. The most popular destinations out of Heathrow are New York (JFK), Dubai, Dublin, Frankfurt and Amsterdam (Heathrow Airport). Terminal 5 saw 28.1 million passengers on 193,440 flights. 38% of passengers are British, 35% are transfers, 34% are travelling on business, 57% are men, and 53% are flying long haul, which means that there are a variety of people coming and going. Europe, North America, Central/South America, Africa, and Asia all are primary destinations out of Heathrow. This covers a wide variety of locations with all types of people. We plan to draw unique visitors by implementing our virtual store, and creating curiosity within the

Net-A-Porter brand. We are increasingly capitalizing on this opportunity to extend our brand beyond the web without offering consumers the “in store” experience. INNOVATE AND DIGITIZE COL LECTIONS TO MAKE PRODUCTS ACCESSIBLE FOR A GENERATION ENGAGING IN TECHNOLOGICAL INNOVATION To truly engage and create a unique shopping experience, Net-A-Porter will utilize 3D scanning to take accessories from online to offline without the product. Although 3D collections are dependent on the future of funding and scaling of the techniques used in 3D labs, collections can be digitalized since 3D scanning technology has become affordable. Merchandising products three dimensionally will not only let customers interact with the product, but will also reassure their luxury purchase when viewing the product on the Net-A-Porter website. Customers will also be able to engage in this initiative online from AutoDesk 3D Design firm to give people a closer look at the products from their own mobile devices. Net-A-Porter is working to redefine their relationship with audiences to become more interactive since they do not have any brick and mortar retail spaces. Having three-dimensional models of the products in a window display is not only eye catching, but can help create more engaging lessons with between the customer and the brand. The Smithsonian Institute is devoting about $350,000 annually to 3D digitization, with companies also donating equipment. 3D scanners and software will be purchased from Geomagic who is a family of powerful, integrated scanner and software systems. This company ushers in a new era of design-to-manufacturing productivity and utility performance measures.

the next 15 years (Benham). The lower cost in travel will increase the frequency of travel. More people are looking to spend their money on an experience, and are traveling further away. The cost of fuel, the security regulations and the environment will all affect the travel trends. The changes in technology are the most significant trend effecting commercial business. Online retail sales are expected to keep growing as well as constant Internet access. There is also an increase in the number of handheld mobile devices, which will hit 1.4 billion by the end of 2013 (Leonard). Mobile Internet will continue to surge in the next five years at a rate of 66% each year and connected devices will outnumber humans this year (Leonard). With these statistics, the m-commerce market will grow significantly, effecting mobile shopping apps. Tech in retail is not limited to the Web, impressive inventions are transforming the in-person shopping experience. Interactive screens, ‘magic mirrors’, and QR codes offer a new retail experience that will impact the way we shop. With out initiative, we are providing our consumer with a new e-commerce experience allowing them to feel in control. A website can only do so much, by offering a new visual display, we are able to cater to the tech-savvy consumers.

TRENDS: Changes in travel trends will also impact consumer profiles over time and the segmentation of the retail market. Air traffic is supposed to double in

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PLAN FOR EXECUTION In order to complete our initiation, we must have a strategy for the next few years. Beginning with year 1, 2014, we will begin our concept research, which includes our product specification, concepts and feasibility. This is where we will begin our research into our technology being used, the concept of how the store will work and the feasibility of this creating an impact on not only our company but also the industry. We will then begin the program planning which includes the budget and schedule for the implementation of the virtual store. The budgeting will include everything from hiring the design team, to installing the virtual store to the promotion. The preliminary design will be complete by the end of April, where we will research and work with the technical specifications, layout the drawings of the finals design and then proceed to build and test the product. Once we have completed testing, we will begin the installation, which will continue until the launch. Once the first launch is complete and some results are noted, we will fix the defaults and continue to update our initial digital store and add new content. Our new products will include other accessories and new technology. It will be updated every 2 months. The reason we are able to update less often is because the travelers will be new each month. After we launch in London in 2015, we will begin the research and designing for our Tokyo store. This will be easier and take less time testing because it will be very similar to our original store. In 2017 we will launch in Hong Kong and proceed to begin our execution plan for our Amsterdam Schiphol for 2018.

Execution Plan Execution Plan Jan Feb Concept Research Concept Research Product SpeificationProduct Speification Concepts Concepts Feasibility Feasibility Program Planning Program Planning Unit Cost Unit Cost Budget & Schedule Budget & Schedule Preliminary Design Preliminary Design Technical Specifications Technical Specifications Layout drawings Layout drawings Build & Test Build & Test Installation Installation 26

Pre-Lauch Pre-Lauch March Jan April Feb March May April June

May July

Launch Launch Post-Launch Post-Launch August June September July October August September NovemberDecember October NovemberDecember

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PLAN FOR EXECUTION | 4P’S DEVELOPMENT / MARKET RESEARCH.

Airport retailers have been analyzing shifting consumer tastes and demographics to offer a retail mix that complements in increase in airport consumer spending. According to a BDRC survey from Market week, Airport retail sales will increase by an average of 6% annually between 2008-2012. London Heathrow International Airport received the Best Airport Shopping award for the second year running at Skytrax. The most effective retail shops have to be “on the way” of the passenger rather than “in the way” according to the marketing and insight director of Heathrow Airport, Nick Adderley. This increasing trend in airport shopping is directly influenced by emerging economies. Terminal 5 in London Heathrow has Tiffany, Bulgari, Cartier and Chanel for example. The net retail income per passenger at Heathrow rose by 11.3% to GBP 5.51 for the first quarter of 2012, up from GBP 4.95 the previous year. The article also states retailers need to act to the future demand of passengers. Airports want to deliver the right experience to their customers to enhance the overall experience. Net-APorters initiative for a digitized store using 3D scanning technologies runs parallel to London Heathrow’s goal of not placing things in people’s way. If anything, the Net-A-Porter virtual shop is a way for customers to be engaged in the brand, and then walk to their flight while shopping on Net-A-Porter. The store will offer a way for customers to experience the product without touching it, but seeing it in a way they have never seen a handbag before. Three dimensional technology and actively engaging customers will create an experience that no retail location has done in this sophisticated of a way.

PRODUCT According to the Economic Times, airports are considered “female fantasies” in which some of the product categories that see the highest results are related to women and accessories. It is proven that if a store has bags in the shop, women will enter to browse. These women are impulse driven and the perfect situation for airport retail shops. (Abbas, Economic Times) Net-A-Porter sells products in all categories. 60 % of their sales are derived from RTW, while 20% of sales are shoes, and 20% from handbags and accessories. Aller-a-Porter will focus on increasing sales from the handbags and shoes considering it is 40% of the business. Since many competitors including Miu Miu, Burberry or Dolce & Gabanna predominantly sell handbags and accessories in airport retail, it is important align the Net-A-Porter initiative competitively. The service aspect of the company is what will hold a competitive advantage for this strategy. People who make purchases in airports usually find carrying the product a hassle. Net-A-Porter allows customers to experience the product virtually and then explore with ease on their own mobile device. The Net-A-Porter brand has successfully created an image that customers associate speedy and effective delivery in a beautifully packaged black box. The product being developed is the digital screen and 3D scanning technology being adopted to create this omniscient experience between the store and the mobile device. Most retailers are not investing in this technology to help customers view and experience a product in a “window” store. This will enhance the product considering its accuracy in details and color. Net-A-Porter prides themselves on being a brand that is an innovator in bespoke technological solutions for retailers; this initiative is in full alignment with their aesthetics and values.

The location for Aller-a-Porter will be initially launched in Terminal 5 of London Hethrow In-

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PROMOTION

ternational airport. Prelaunch initiatives will include a “coming soon - Aller-APorter by Net-A-Porter” on Hethrow Express Trains which allows customers to get to London city center to the airport in only 15 minutes. Their aesthetic is the smart way of traveling which aligns with Net-A-Porter’s vision of speedy delivery. This initiative will leave customers intrigued to approach the space prelaunch, along with the excitement for traveling again through terminal 5. The space in Terminal 5 will be as large as a normal store front. Pre-launch initiatives will include a black wall with “coming soon – Aller-a-Porter by Net-A-Porter.” This will cognitivley embed the idea in passengers mind that Net-A-Porter will be opening their first store. There are 10-20 million customers going through Terminal 5 annually. Of these 20 million, 60% are AB’s (National Readership Survey) in which A’s are upper middle class and B’s are middle class. Mellery Pratt from Business of Fashion writes that luxury brands had been buying posters at airports worldwide for years, buying the covers in in flight magazines stuck in seat pocket and now companies have the opportunity to put their product and staff in front of them. This will be a strong publicity opportunity for Net-A-Porter .

According to BBC UK, United Kingdom shoppers are embracing technology at a faster pace than many other countries. A survey based on global shopping habits by KPMG suggests 77% of British shoppers prefer to buy goods online, compared to 65% globally. These customers seek social media sites for reviews before they make a purchase. 88% of people in the UK reported downloading an app to their phone, in which 74% of consumer said they would buy flights and holidays online. This makes London Heathrow the ideal location for this initiative considering their innovation in the way customers perceive and adapt to airport retail. The new initiative will input 5 large airport banners both in terminals, check-in, and in the terminal to guide passengers to the area of Aller-a-porter. We will also be imputing printed advertisements in travel magazines including Virgin Atlantic, Emirates Airlines, British Airways, Singapore Airways along with Conde Nast Traveler and Travel & Leisure Magazine. Net-A-Porter will create a marketing budget of 10% of total sales from this initiative geared towards print advertisements. PRICE Cost Leica HDS7000 3D Laser Scanning System. This technology allows 3D laser scanners to capture “as-is” geometry of structures, sites and scenes. This scanner is known for their ultra high scan speeds and high level of detail. (>1 million points per second). This is the industry’s best phase-based scanner. Cost $2,261.45 / month total price $123,915.00. Net-A-Porter will split this cost into 3 years to pay $41,305 annually for 3 years.

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MMT MultiTouch Wall ALVARO The benefits of the touch wall is it offers True MultiTouch where multiple users can interact simultaneously, Ultra Large Resolution which means up to 24 times full HD, landscape or portrait mode to fit the needs of the company, and it is a flexible construction of size base, additional spaces and optional PC/ Sound System. The technology meets engineering and metalworking crafted to the highest standard in their German facilities. Net-A-Porter will adopt the 3x2 screen model which will encompass 3 84’’ screens x 2 84’’ inch screens with a base construction of 10cm. This is perfect for an max height customer of 1.85m. The screens have a response time of 8ms, and operates 24 hours a day 7 days per week allowing customers to shop at all hours of the day. This company also offers transparent multi-touch LCD showcase that allows for 15% transparency in full HD 1920x1080x resolution with high contrast colors and LED showcase. This encompasses the idea of a new era of product presentation. It is used as a smart window. Net-A-Porter can change displays how ever often they please, this will allow customers to see the product and shop directly on the screen with 3D technology placed over the actual product. The price of the screen is $43,320 for 1 84’’ screen. We will initially use 6 for the initiative costing $124, 080. The location: The Net-A-Porter Digital shop will be located in London Heathrow terminal 5. The cost per square foot will be ( see chart) The average cost of rental price rents for 2013-2014 is £642.86 per square meter. London Heathrow provides approximately 1.4 million sq. meters of commercial accommodation for more than 280 tenants at the airport. They embody a highly customer focused atmosphere that is committed to provide choose, quality, hospitality and value for their money (Heathrow Airport) Other costs include printed advertisements in which 10% of total sales from this initiative will be allocated to advertising in airports, and consumer focused travel magazines such as Conde Nast Traveler and Virgin Atlantic Magazine.

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come to life. Allowing consumers to see further into the Amsterdam Schiphol products they are purchasing online will forever change Incheon International the future of Net-A-Porter . They are capable of purchasRegal Airport Hotel, Hong Kong LONG TERM BENEFITS ing this technology to use in a way that has yet to be Cedarbrook Lodge, Seattle CHANGES IN THE UTILIZATION OF VISUAL MERCHANDISING: done through retail. This technology is just beginning to Singapore Changi Airport We have highlighted both the growing convergence of digital and brick and mortar retailing, and the way in which any take off, and Net-A-Porter being one of the first retailers online-only retailer can seek out physical routes to market. It has also demonstrated the matching of brand credibility to use it will impact the brands e-commerce distribu- With the expansion into other airports, we will increase Execution Plan Execution with logistical expertise. By creating aPlan digital store we are creating a new strategy for all retailers. Since stores are becomtion by making it easier and more reliable to purchase the product selection by featuring other accessories ing more of showrooms, visual merchandising is also changing. In the long-term, retailers will be selling more through online. This technology Net-A-Porter will invest in is such as luggage. By expanding to several different dePre-Lauch Launch LaunchPost-Launch Post-Launch e-commerce. With digital stores, less people are needed to work, and merchandisingPre-Lauch is all done through the computer. Our for the long-term, and when things need to be adjusted, mographics ahead of the competition, Net-A-Porter can Jan Feb but Jan AprilaMarch May April June MayJuly June August July September August October September November October December NovemberDecember strategy will not only change the way current visualization is done, itMarch will also Feb introduce new concept to online-only enhanced, or expanded, one person and a computer can ensure long-term profitability and sustaining its posiResearch Concept Research retailers such as Concept Ebay and Amazon. Consumers benefit from highly visual, intuitive digital experiences that change the easily do it. tion in the online luxury market. Product Speification Product Speification way they think about shopping. For Net-A-Porter , this initiative will specifically give them the visual merchandising they Concepts Concepts have never had. EXPAND INTO OTHER AIRPORTS FUTURE IMPLICATION: Feasibility Feasibility TO INCREASE SALES AND BRAND In the future we hope to expand our 3D technology into Program Planning Program Planning AWARENESS: our online store. This way, our consumers won’t need to Cost WITHOUT Unit Cost PRESENT IN TRAVELUnit RETAIL USING A MOBILE DEVICE: Once our initiative proves to be beneficial we will imple- be traveling in order to experience the technology. ShopBudget & Schedule Schedule Today, travel retail is either shopping onBudget a personal&device, with little or no wifi, or shopping in a store and having to travel ment it into other popular airports with luxury demand ping online has its benefits, which include the browsing Preliminary Design Preliminary Design with your purchases. We hope to start a trend that gives retail a new standing in the travel world. We want consumers to and high foot traffic to further our brand awareness and and search options as well as broad selection. However, Specifications Technical Specifications maintain theTechnical brand experience, with the newest technology, and be encouraged to shop while waiting for their next flight. sell more products. The airports that we will implement it is also difficult to see the detail of the products without Layout Shopping in an airportLayout is usuallydrawings impulse buying anddrawings we will change that. Digital is a huge opportunity for brands to crein are: high zoom, high quality images and 360-degree views. & Test Build & Test ate systems of privileges andBuild experiences that you can’t afford to build in real life because you’d need so many touch points With our technology we will be able to offer all of our Installation Installation and salesmen. We are going to benefit by bringing the products to the consumer in the most convenient way. Luxury has TOP 10 AIRPORTS: consumers a deeper view into our products, allowing a huge impact on travel retail, and we want it to grow along with the new technology and the new generations. Net-ATokyo International (Haneda) shopping online to be easier. Porter already has their presence online, but this will give them a storefront presence without the troubles of distribution Vancouver International Airport and a physical store. This is essential for Net-A-Porter to continue its growth, as well as appeal to the millennial consumer. Zurich JUSTIFICATIONS FOR FUTURE Munich AIRPORTS: BE AN INNOVATOR OF BESPOKE TECHNOLOGY: Beijing Capital International TOKYO: According to Shermans Travel, Tokyo Narita Although the technology has been around for a while, people are just starting to accept the concept of 3D digital printing Hong Kong International is one of the top Airports for shopping. Tokyo’s airport and scanning. Net-A-Porter will be an innovator of bespoke technology with the use of 3D scanning to make products

Pre Launch Pre Launch Launch PreLaunch Launch Year 1-London Year 1-London Q1 Q2 Q1 Q3 Q2 Q4 Q3 Q1 Concept Research Concept Research Product Speification Product Speification Concepts Concepts Feasibility Feasibility Program Planning Program Planning Unit Cost Unit Cost Budget & Schedule Budget & Schedule Preliminary Design Preliminary Design Technical Specifications Technical Specifications Layout drawingsLayout drawings Build & Test Build & Test Installation Installation 32

Pre Launch PreLaunch Pre Launch Pre Launch Launch PreLaunch Launch Launch Launch Launch Launch Launch Launch Year 2-Tokyo Year 2-Tokyo Year 3-Hong Kong Year 3-Hong Kong Year 4-Amsterdam Year 4-Amsterdam Q4 Q2 Q1 Q3 Q2 Q4 Q3 Q1 Q4 Q2 Q1 Q3 Q2 Q4 Q3 Q1 Q4 Q2 Q1 Q3 Q2 Q4 Q3

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has 135-stores on 2 stories, including luxury retailers such as Hermés, Chloe, and Chanel. We will place our virtual shop in this airport in 2016 to take advantage of the opportunity this location and market has to offer. The foot traffic in terminal 1 is about 23 million passengers a year. The airport is artistic with origami creations, and continues to grow each year. HONGKONG INTERNATIONAL AIRPORT: In 2017, Net-A-Porter will place a virtual store in Hong Kong International Airport. HK is consistently ranked among the world’s best airports overall and gets high marks for design, passenger flow, accessibility, and its superlative offering for shopping. Being a destination for shopping, it only makes sense that its transit hub also caters to commerce. HK sees about 56 million passengers a year and 39 million alone in the international terminal. Airport shoppers flock to the 160 shops in terminal 1 where they can find Burberry, Versace and Prada. The airport pricing remains in line with the downtown Hong Kong pricing, which encourages consumers to shop at the airport while traveling.

Amsterdam Intertaional Duty Free

Louis Vuitton Store, HK Airport. Photo by: Purse Blog

AMSTERDAM SCHIPHOL: In 2018 Net-A-Porter will place a virtual store in Amsterdam Schiphol. This airport offers a bank of 26 luxury fashion stores, in lounge 3, which are only accessible to passengers leaving on intercontinental flights. Schiphol sees about 16 million passengers through lounge 3 and 51 million throughout the whole airport annually. Hermés and Burberry are among brands to get their own stores. Passengers are offered the chance to relax and shop.

Toyko Interational Airport

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MARKET ANALYSIS Size of Market Key Players Direct Competition Indirect Competition

SIZE OF FASHION ACCESSORIES MARKET TRAVEL RETAIL Travel retail has proven to be a resilient market globally over the past decade. Duty and tax-free sales have continued to grow despite global economic crisis and global events. Europe has traditionally been the strongest geographical market for duty and tax-free (Gleave). There are a few factors in travel that may have a direct impact on Travel retail. The lifting of the ban in carrying liquids through security leading to reduced dwell time will begin to take place in 2014. There will soon be increased restrictions on import limits in foreign countries as well. The market continues to be challenged in areas such as books, foreign exchange and technology. Airports offer unique advantages for retailers. The data in airports includes check-in information including the passenger’s name, where they are going, what airline, at what time, and in what class. Airports want to receive the daily sales from the retailers so they can analyze them in conjunction with flights and give it back to the brands so they can use it (Mellery-Pratt). This type of data is already used to alert certain luxury companies when particular individuals are passing through the airport. “Our objective with a lot of luxury brands is to significantly increase the average transaction value by being able to offer [special things] when we know certain passengers are going through,” said Zingraff-Shariff (Mellery-Pratt). The technology and the data that can be used for these retailers can change their selling and marketing strategy and build their sales. They have the right consumers who are willing and ready to spend the money on these expensive brands, they just need to merchandise in an attractive way. This is where technology can come into play. Merchandisers can use real time and data to reflect the profiles of much larger number of customers who are passing through. “Basically, [when you have digital screens] all you need is to plug in various contents of each brand at a lot less cost and with more flexibility. It enables you to change quickly, so if you have got the English going through in the morning and they like their Johnny Walker Black you will put it on [the screen]. And then at 15.30, because you have got another nationality going through in droves, you are going to put on the latest Chinese liquor,” Continued Zingraff-Shariff (Mellery-Pratt). [ DFS annual revenue as of June 30, 2013 is $4,215 Million (LVMH report). ] LONDON HEATHROW TERMINALS At Heathrow alone, 70 million passengers a year with an hour or so to kill add up to serious spending power. So popular are the airport’s shops that last year sales per square foot at its retail outlets hit a staggering £2,782 – making it one of the most productive shopping destinations in the country (Neville). Many retailers have known about the power of airports for years, and some of the Heathrow stores are among the best-performing stores in the company’s profile. Terminal 2 is going to open next year and will be servicing 27 star alliance airlines. It will have a two-level departure 36

lounge lined with shops. “Heathrow management says it has “defined a fresh retail vision” for the shops, which includes concepts like “SoLoMo” – dedicated “social location mobile” apps to help customers find their way around the stores” (Neville). Fashion brands are finding these spaces very profitable thanks to the wealthy passengers who have time on their hands. “Heathrow Airport has reported a 2.6% increase in net income per passenger from £6.02 to £6.18 for the nine months ended September 30, 2013” (Newhouse). Muriel Zingraff-Shariff, retail director at Heathrow, explains: “A lot of women business passengers, who come in and out every week, tell us it’s great because while they’re here – having to be here early – they can do some shopping, which they never have time to do in town because they’re too busy” (Neville). Approximately 70% of Heathrow’s passengers are from outside the European Union and it is an airport of choice when traveling through the UK (Neville). A walk through Terminal 5 is like a walk through Paris or down Rodeo Drive. The top fashion brands line the terminal and there are no security men intimidating consumers. It is a relaxing environment to spend your time as well as your money. The departure lounge of Heathrow Airport’s Terminal 5 is where passengers buy over 450 million dollars a year in accessories, clothing, jewelry and perfumes from the top brands (Mellery-Pratt). This was not always the case and retail has undergone a huge transformation in the past 20 years. When retail developers began to work with airports, the impact was significant. “And we were beginning to get demand from brands who had never really traded at the airport: big players like Chanel and Dior, who had always sold cosmetics through the duty-free operators, but had never had stand-alone stores,” said Brian Collie, former group retail director of the British Airport Authority (Mellery-Pratt). The passengers who make up for this retail foot traffic at airports are the passengers between clearing security and boarding their planes. Many of these consumers are bored and others are brought in by the ex-

citement of their leisure trip. “Today, over one in ten European travelers look forward to shopping at airport shops, said Richard perks, director of retail research at Mintel (Mellery-Pratt). The biggest draw for these premium customer profiles in international passengers. “At an airport you have the best customers. Ten, fifteen, twenty million customers going past your door every year and they are 60 percent AB’s,” said Collie, using socio-economic classifications developed by the NRS (National Readership Survey) in which A’s are upper middle class and B’s are middle class” (Mellery-Pratt). Today, marketing remains a key reason to invest in airport space but now, being part of the retail operation is just as important. The sales density can be significantly higher then mall or downtown locations (Mellery-Pratt). Travel retail used to be something that was just a good time killer, but now it has integrated into the main strategies of high up brands. While declining to reveal precise figures, Muriel Zingraff–Shariff, retail concessions director of London Heathrow, concurred: “For some of the luxury brands, I can tell you that their store [in London Heathrow Terminal 5] is second only to their Bond Street or New Bond Street stores in terms of productivity — and, for some, it’s the most successful in terms of productivity per square meter” (Mellery-Pratt). Heathrow is seen as an international platform to launch a brand into the world. The terminal 5 experiences is setting the bar for the future and may compare the airport experience to the mall experience. Some consumers may even do their big seasonal purchases at the airport. “Britain is getting more and more high net worth visitors from Russia, Brazil and the Far East,” says Alex Johns, managing partner at Worth Retail and one of the UK’s leading retail and digital specialists. “Luxury is booming and sales of luxury goods are expected to rise” (Cook). Heathrow boasts one of the highest retail sales of any airport in the world due to their 340 outlets offering brands such as Harrods, Ralph Lauren, and Mulberry. Heathrow has also launched a personal 37


shopping service, which will include an interactive layout and expert technical advice. Heathrow is advancing quickly with their retail selection and technological expansion. With this progression, Heathrow is not optimizing the abundance of resources around them. “Airports need to market their retail offering way better online, as typically their online experience has not increased in performance in parallel to the in-airport experience,” Johns explains (Cook).

TESCO: Last year, Tesco unveiled an interactive digital billboard in the departure lounge a Gatwick Airport that allowed consumers to order groceries to be delivered to them when they returned home from the holiday. Using Smartphone apps, the products could be added to a shopping cart by scanning the barcodes displayed on the items. They also made it so you can slide the screens on the digital ‘fridge’ to allow consumers to browse around 80 of the most popular products. The use of interactive billboards in the UK follows a successful trial in South Korea’s subway. Since launching more than 55,000 transactions have been made using the display (Moth). 16% of Tesco’s sales currently involve Smartphone’s at some stage of the purchase journey while 8% come exclusively from mobile. EBAY: Ebay opened up a pop-up shop near London’s Oxford Street, based entirely around instant purchasing via QR codes. It was open for five days in December 2011 and only had 200 items on display. To make a purchase, customers scanned a product’s QR code which turned them directly to the payment section of the bay website. They opened the store to cover ‘Super Sunday’ weekend, which is typically the time the most number of people shop online. Ebay wanted to reinforce the fact that the site should be a destination for Christmas Shopping.

COMPETITIVE LANDSCAPE The large number of potential customers weakens buyer power and switching costs for consumers strengthens buyer power to an extent. Handbags are used much more frequently then luggage and tend to change with fashion trends. Brand loyalty depends on an individuals demand for a specific product and brand loyalty may be greater towards the manufacturer or designer of a handbag rather then a retailer. Retailers must stock the products to meet the consumer demand. They also have to be aware of price sensitive consumers who may opt for discount rather then premium outlets. This is why choosing the right locations to distribute products is important.

JOHN LEWIS: John Lewis, in 2011, joined the list of retailers trailing QR codes with the launch of a virtual shop in Brighton. The retailers ‘top 30 things to buy for Christmas’ were included in the window display. Customers scanned the QR code of the item they want which took them to the John Lewis mobile site to complete their purchase. They offered 96 products until the end of December. KATE SPADE: To introduce the Kate Spade Saturday clothing line and accessories collection, they offered a 24-hour interactive window shop at four formerly vacant storefronts in NYC. This allowed consumers to shop on a large touch screen display and once the items were purchased they are delivered within the hour. The storefront was only open for a month. ( BR A N D S A N D D IST R I BU TO R S)

Almost any luxury brand is capable of creating a virtual store front, just as our initiative. The brands that do partake in this technology must be well branded and be known just by looking at a few products. Louis Vuitton and Burberry are very strong brands that carry the advanced technological essence of luxury retailers. They are fully developed lifestyle brands that cater to the consumer who uses the latest devices and spends money on accessories. “Burberry has announced that online sales and digital investment have helped to boost its sales by 18 per cent to €392m in the three months to the end of June 2013” (ecommerce facts). With travel retail and e-commerce being significant, department stores such as Barneys, Saks, and Neiman’s could very easily manage a storefront window. The difference between the retailers is that Net-A-Porter is only e-commerce giving their ‘new’ storefront a purpose.

CHANEL BURBERRY DIOR DOLCE & GABBANA GUCCI HARRODS MULBERRY PRADA HERMES MIU MIU

IN D I R E C T C O M PE T I T I O N : ADD+ AMERICAN EXPRESS BEAUTY STUDIO BOOTS BUCKLEY JEWELLERY CATH KIDSTON CAVIAR HOUSE & PRUNIER CHANEL BEAUTY CHOCOLATE BOX CLARKS COCOON DIXONS TRAVEL

K E Y D E PA RT M E N T STO R E S: NEIMAN MARCUS SAKS FIFTH AVE. BARNEYS BERGDORF GOODMAN SELFRIDGES

38

ADIDAS: In 2012, Adidas created a completely interactive in-window experience that lets consumers flick through clothing racks, individual garments and play with a model to see how the clothes look on. It also allowed you to connect your phone to the installation and drag everything into a shopping bag that transfers the items to your phone with no application.

FAT FACE GLORIOUS BRITAIN HAMLEYS JO MALONE LINKS OF LONDON MCM MAPPIN & WEBB

DIESEL: In Milan, Diesel displayed an interactive sculpture in the window of the forthcoming Diesel store in Piazza San Babila. When you walked by it created a rippling sequence of images digitally painted with a trail of time. It also had a touch screen to interact with the surreal experiences offered by the technology. It captured the movement and time and acted as a digital mirror. KEY SUPPLIERS/VENDORS: JCDECAUX NORTH AMERICA: JCDecaux has a large-format interactive display that is nearly 8 feet tall. It is a digital touch screen and is fully interactive. It allows consumers to engage while they are traveling. It combines a multi-touch technology, gesture triggered activation, audio, video and text-to-mobile. They successfully reach over 439 million air travelers annually. They are the leader in Worldwide Airport advertising and seek to be seen by travelers who are looking to be informed, and affluent leisure travelers who are looking to spend both their money and time. With a 27% share of the world airport advertising market and a portfolio of 152 concessions in international airports, including London’s Heathrow, they are the go to advertisers. They offer highly customizable multi-sensory platforms providing unforgettable branding experience to every user. Travelers are initially captured by the scale of the wall display and once engaged they explore the technology. 39


THE NET-A-PORTER CUSTOMER DEMOGRAPHICS • Age 34-55 (average age of 39)

REMUSNOC TEGRAT

TARGET CONSUMER

• Travels approximately 11 times per year. Many have multiple homes and desire the flexibility to shop globally • Influential and highly connected in society, business, fashion, art, design, media and finance.

THE NET-A-PORTER READER

“Synonymous with luxury, Net-A-Porter is the perfect platform to reach a high-spending global audience.” Every month 5 million women visit Net-A-Porter to read, browse and shop the latest runway looks from the seasons most sought after collections. Their global audience includes the following Age: Average age of reader is 33

• High net worth with average HHI of GBP 170,000 • Spends an average of GBP 13,000 on fashion annually.

Profile: 99% are female 52% are married / living with partner 33% have children

• Responsive to “newness” and the latest fashion products

Occupation: CEO, senior executive, lawyer, medical practitioner, media or fashion director

• Purchases over 50% of her clothing online (41% from a tablet, 41% from a smartphone)

Annual HHI: 170,600 GBP Annual Spent on Luxury Fashion: 13,400 GBP

• Tech-savvy – 60% own an iPad, 69% own an iPhone (Information based of a panel of 6,000 women from around the world including the UK, US, France, Germany, Russia, HK, China, Australia, Japan and the Middle East. Net-A-Porter asked about their lifestyle, shipping habits and the way they consumer media. Net-A-Porter Media Kit)

Net-A-Porter ’s interactive weekly magazine is read by over 111,000 women who spend 12,216 GBP on fashion every year. Net-A-Porter ’s customers spend an average of 1,224 GBP on cosmetics and treatments per year. (Source: Net-APorter insight panel 2012) LONDON HEATHROW TERMINAL 5: 10 – 15 Million customers daily

Results showed that women read magazines from all over the world. They have a massive awareness and interest in international trends. As frequent travelers with a worldwide relationship base, they find global content aspirational and appealing.

60% AB – A = Upper middle class, B – Middle class. (BoF)

“SYNONYMOUS WITH LUXURY, NET-A-PORTER IS THE PERFECT PLATFORM TO REACH A HIGH-SPENDING GLOBAL AUDIENCE.” -NET-A-PORTER 40

41


THE NET-A-PORTER C USTOMER PSYCHOGRAPHIC & BEHAVIORAL CHARACTERISTICS The Net-A-Porter customer according to VALS Profile is classified as a “Innovator.” Innovators are said to be successful, sophisticated, take-charge people with high self esteem. They exhibit these characteristics in a variety of ways considering their abundant resources and assets. Innovators are the most receptive to new technologies and ideas. They are also very active consumers in the market in which their purchases often reflect acquired tastes for niche products, and services in upscale markets. (VALS) Innovators express their taste, independence and personality through the importance of image. This is not supposed to reflect evidence of power or status. This customer is usually an emerging business leader who always accept and seek new challenges. They simply enjoy the finer things in life. Some of their favorite items include BMW, sparkling water, a rewarding experience and Wired Magazine (VALS). After reviewing their VALS profile, the Net-A-Porter customer also embodies characteristics from Neilsen’s PRIZM consumer profile from specific information. The Net-A-Porter customer is a women who embodies characteristics from the fourth most prestigious demographic group according to Neilson, the “Young Digerati.” Since the Net-A-Porter customer are women who are tech-savvy, live in fashionable neighborhoods on the urban fringe filled with trendy apartments and condos, fitness clubs, clothing boutiques and casual returns, they fit seamlessly into this category. Socially speaking, the Net-A-Porter customer would fall into the “Urban Uptown” social group, which is home to the nation’s wealthiest customers. Members of this group are college educated, ethnically diverse with above average concentrations of Asian-americans. They are consumers that enjoy the arts, shop at exclusive retailers, drive luxury cars, travel abroad and spend heavily on computer and wireless technology. There are 10,456,630 US House Holds who fall under this category. (Neilson). A survey conducted by the Finnish airport operator Finavia found that one in three customers base their travel decisions on transit airports. This study is based off of the goals and attitudes of 3,000 people in Sweden, Denmark, Finland, Germany, Japan and the UK. Finavia then split these customers into four groups based on the differences in travellers’ needs and expectations. 38% of travelers are ‘fast and efficient flyers,’ 30% are ‘enjoyment seekers,’ 18% are ‘habitual travelers,’ and 13% are ‘safety seekers.’ Two out of three ‘fast and efficient flyers’ choose their flight connections based on the performance of the transit airport. 40% of habitual travellers do the same. 43% British customers pay close attention to their transit airports when planning their holidays. They enjoy airports with good shopping. The Net-A-Porter customer has parallel habits to this considering their frequency of travel and inter-

42

est in high tech spaces along with shopping. This same study also found that Japanese dislike boring airports. 25% of fast and efficient fliers, and 9% of all passenger types admit to making a tax-free purchase on every trip. (TTG Nordic) According to the chart, both males and females actively engage in the use of their smartphones or tablets when in retail spaces. This progressive omniscient experience will position the Net-A-Porter brand at a level of bespoke technology other competitors are not even considering. This initiative also engages the customer in a way that has not been done before. Since the Net-A-Porter & LHR passenger enjoys technical innovations, this initiative will allow customers to integrate their smartphones with a pure-play retailer in a brick-andmortar environment. This also creates an exclusive experience for customers since it is not open to the public. Only passengers traveling through terminal 5 can initially see the first Net-A-Porter digital space. Customers who view this online will then have the opportunity to engage in the Net-A-Porter App by voting and suggesting which airport they would like us to come to next.

43


YOUTUBE: We will provide a Youtube video that will show consumers using our device. We hope that this encourages travelers to fly through Heathrow and have time to check out the new virtual storefront while they are in the airport. Since our customers are susceptible to new technologies, we feel as though this will give hype to the concept.

OMNI CHANNEL MARKETING

COMMUNICATION + PROMOTION + FINANCIAL PLAN

PRE-LAUNCH Before opening, a Youtube video and images of the storefront with a ‘coming soon’ sign will be released, announcing the first Net-A-Porter store. The consumers won’t know that it is a virtual store, which will create anticipation.

12-18 Month Strategy Omni-Channel Initiative

THE EDIT AND PORTER : Create an “Edit” based around travel retail. We will feature the store window in both of our magazines allowing consumers and readers to see the new technology that we are using. We will write articles about the advantages of shopping here and about having a store in terminal 5.

EXPRESS HEATHROW TRAMS: Exterior train advertising creates a stir when there is a high visibility of moving trains. Whether in the station or interacting with commutes, these ads are sure to stick in the minds of all who come in contact with them. The large, colorful, innovative design will demand attention and deliver to a varied audience. Since most people will have to access the tram in order to change terminals, they can reach some very upscale customers inside the bus and a variety of people by advertising on the exterior signs. Our advertisement design will be very simple since it will only be seen for a limited time and it needs to specify our message to a broad audience.

Pre-Launch / Launch / Post Launch Promotional Activities Budget for Execution Sales Forecast Projected Income Statement

ALLER-A-PORTER PROMOTION TIMELINE

ALLER-A-PORTER PROMOTION TIMELINE Pre-Lauch

Jan

Feb

MAGAZINES: Net-A-Porter is going to have an article written about the new technology and the function and accessibility of the virtual store so people who care about the travel market, and travel often will be aware of this new technology. We hope that the luxury retailers who read these travel magazines will look further into the store as well as Net-A-Porter , and recognize the shopping advantages while traveling. By advertising in these publications, our target market who is interested in a pure-play retailing initiative will make sure to experience what Net-A-Porter is offering. This is

March

April

ALLER-A-PORTER PROMOTION TIMELINE Launch Pre-Lauch

May

Jan

June

Feb

Post-launch

Launch

July March August AprilSeptemberMay October JuneNovember JulyDecemberAugust Jan

Magazines

Magazines

Magazines

The Edit

The Edit

The Edit

Porter

Porter

Porter

Virgin Atlantic

Virgin Atlantic

Virgin Atlantic

Emirates

Emirates

Emirates

British Airways

British Airways

British Airways

Condé Nast Traveler

Condé Nast Traveler

Condé Nast Traveler

Singapore Airlines

Singapore Airlines

Singapore Airlines

Outoor Advertising

Outoor Advertising

Outoor Advertising

Aiport Tram

Aiport Tram

Aiport Tram

Airport Buses

Airport Buses

Airport Buses

Termianl 5 Advertising

Termianl 5 Advertising

Termianl 5 Advertising

Social Media Marketing

Social Media Marketing

Social Media Marketing

Website Promotion

Website Promotion

Website Promotion

Youtube Promo

Youtube Promo

Youtube Promo

Email

Email

Email

Facebook

Facebook

Facebook

Twitter

Twitter

Twitter

Instagram Promo 1

Instagram Promo 1

Instagram Promo 1

Instagram Promo 2

Instagram Promo 2

Instagram Promo 2

Foursquare Check-in

Foursquare Check-in

Foursquare Check-in

Card Advertising

Card Advertising

Card Advertising

1st Class Card handout

1st Class Card handout

1st Class Card handout

44

Post-launch Pre-Lauch September Feb

45

October March

November April

December May

June

July


EMAIL: Net-A-Porter VIP’s as well as people flying out of London Heathrow terminal 5 will receive an email promoting the new store. It will have a picture of the storefront, inviting them to take a look. We want our consumers to feel invited. LAUNCH: FACEBOOK: Our Facebook will have constant reminders about the technology and posts of products that are available at the time. We want our Facebook fans to post vines, videos and statuses about their experience shopping at the store in terminal 5. CARD PROMOTION: When First class passengers check into their flights going out of terminal 5, they will receive a card that looks similar to a ticket, introducing them to the NetA-Porter store. It will have the gate # of the gate closest to the store, and make the passengers feel like they are personally invited to the store. It will also say ‘Delivered home before you are’. This will engage consumers in a fun way and bring awareness.

46

WEBSITE: We will feature our virtual store on our homepage, along with videos of the features available including the zoom in, and 360 degree views. We will also post exclusive products that are available through this store. C H E C K - I N / F O U R S Q UA R E : When checking in online, you can ‘check in’ to Aller-a-Porter in terminal 5, allowing friends to see that you have been to the ‘store’. Foursquare is a community of over 40 million people with over 4.5 billion check-ins. Consumers can look at brief tips and photos when they check-in and engage in conversation. It is another way for consumers to connect with Net-A-Porter . EMAIL: We will continue to send emails twice a week occasionally mentioning our virtual store and its progress. FACEBOOK, TWITTER,EMAIL, INSTAGRAM: We want to re-engage our consumers by asking them to tell us about their experience using the Net-APorter virtual store. Using email we can get feedback on what they enjoyed and a survey of which airport we should launch in next. Using Twitter, we hope to get live feedback and reactions to the technology and using instagram we hope our consumers upload pictures and videos of them interacting with the store as well as with their products they purchased.

COMING SOON

ALLER-A-PORTER LONDON HEATHROW + TERMINAL 5

PRELAUNCH

VIRGIN ATLANTIC EMIRATES BRITISH AIRWAYS CONDÉ NAST TRAVELER SINGAPORE AIRLINES

POST LAUNCH

SHOP ‘THE EDIT’ AUGUST 2014

ALLER-A-PORTER London Heathrow Terminal 5

LAUNCH

in hopes create more traffic to optimize our ROI. Magazines we feel as though our customer will be reading are the following:

SHOP ‘THE EDIT’ Now Open

47


COMMUNICATION & PROMOTION

SHOP ‘THE EDIT’ TERMINAL 5 | AUGUST 2014

48

49


50 51

PRELAUNCH


52 53

STORE


FINANCIAL PLAN.

The allocated budget for Aller-A-Porter is based off of the traffic of each airport, conversion rates of products purchased and the total transactions made from an assortment of 60% bags, and 40% shoes. 40% of Net-A-Porter ’s total sales comes from Bags and Shoes which is why we have chosen to focus on boosting sales and brand awareness with this initiative. Luxury Retail prices have nearly doubled in the past 13 years according to Bergdorf Goodman’s. With this being said, we have planned a 4% increase annually for handbags, and 3% annually for shoes. With that beings said, we chose an average mid-point price for our London Heathrow Store, and the average price of purchase will increase with the addition of each digital store. Our revenue by category is composite of Location + new location annually. For example Y1 London. Y2 London + Tokyo. Y3 London + Tokyo + Hong Kong. The total revenue is based off of the revenue of the digital store, with a conversion rate of 0.5%, along with the addition of adding 1 store annually and with 18% returns. This rate was the average accessory return rate of Luxury goods. Our expanses range from Real Estate, 3D Technology software, maintenance, Advertising in airports, printed magazines, along with social media and e-mail marketing initiatives. In Y1 we take a profit loss of nearly $5 million . Although our expenses increase annually with the addition and maintenance of new stores, the revenue created from the high volumes of traffic justify advertising and maintenance costs. By 2018 our expenses are nearly $232 million, but we still profile $145 million.

54

55


ALLER-A-PORTER BUDGET REVENUE

Planning /LHR 2014 REVENUE

EXPENSES

EXPENSES

LHR Planning /LHR 2015 2014

Toyko LHR 2016 2015

HK Toyko 2017 2016

$

Amsterdam HK 2017 2,018.00$

Amsterdam 2,018.00 NOTES

Based on airport traffic & 0.05% conversion rate. Aller-a-porter (Digital Store) $ (Digital Store) 210,021,000.00 $ $ 210,021,000.00 381,345,930.00 $ $ 381,345,930.00 461,277,050.70$ Aller-a-porter $$ 112,400,000.00 $ $ 112,400,000.00 461,277,050.70 Adding 1 additional store annually Minus goods returned $ goods returned 37,803,780.00 $ $ 37,803,780.00 68,642,267.40 $ $ 68,642,267.40 83,029,869.13$ Minus $$ 20,232,000.00 $ $ 20,232,000.00 83,029,869.13 Based on 18% returns (average e-retail return rate) Total Revenue $ Total Revenue 172,217,220.00 $ $ 312,703,662.60 $ 312,703,662.60 $ 378,247,181.57 $ 378,247,181.57 $$ 92,168,000.00 $ $92,168,000.00 172,217,220.00

London HeathrowReal EstateHeathrowReal Rental & London Estate Rental & 124,080.00 Maintence $ Maintence $$

248,160.00 $ $ 124,080.00

496,320.00 $ $ 248,160.00

992,640.00 $ $ 496,320.00

1,985,280.00$ 992,640.00

1,985,280.00

6 x 84'' MultiTouch Point Plus Screen $Point 259,506.00 6 x 84'' MultiTouch Plus Screen $$

259,506.00 $ $ 259,506.00

259,506.00 $ $ 259,506.00

259,506.00 $ $ 259,506.00

259,506.00$ 259,506.00

259,506.00

3D Scannng Technology $ 123,915.00 $$ 3D Scannng Technology

12,391.50 $ $ 123,915.00

12,391.50 $ $ 12,391.50

12,391.50 $ $ 12,391.50

12,391.50$ 12,391.50

12,391.50

Cost of updating newCost styles 3D $ new styles 2,000.00 of in updating in 3D $$ PM, hosting fees etc.PM, $ hosting fees -etc. $$

2,400.00 $ $ 2,000.00 35,000.00 $$

2,880.00 $ $ 2,400.00 35,000.00 $ $ 35,000.00

3,456.00 $ $ 2,880.00 35,000.00 $ $ 35,000.00

4,147.20$ 3,456.00 35,000.00$ 35,000.00

4,147.20 35,000.00

41,894,545.45 78,280,554.55 $ $ 78,280,554.55 142,138,028.45 $ $ 142,138,028.45 171,930,537.08$ $ $ 41,894,545.45

171,930,537.08

Cost of merchandise Cost sold of$merchandise sold $$ Marketing/VM collateral (production) $ 56,400.00 $$ Marketing/VM collateral (production)

112,800.00 $ $ 56,400.00

225,600.00 $ $ 112,800.00

451,200.00 $ $ 225,600.00

902,400.00 $ 451,200.00

902,400.00

Advertising In Airports $ 600,000.00 Advertising In Airports $$

600,000.00 $ $ 600,000.00

600,000.00 $ $ 600,000.00

600,000.00 $ $ 600,000.00

600,000.00$ 600,000.00

600,000.00

Social media marketing initiatives $ 3,600.00 $$ Social media marketing initiatives

6,000.00 $ $ 3,600.00

6,000.00 $ $ 6,000.00

6,000.00 $ $ 6,000.00

6,000.00$ 6,000.00

6,000.00

Email Marketing Initiatives $ Email Marketing Initiatives $$

2,000.00 $$

2,400.00 $ $ 2,000.00

2,800.00 $ $ 2,400.00

3,200.00 $ 2,800.00

3,200.00

Mobile Marketing & Website 'The Edit' & $ 4,608,400.00 Mobile Marketing Website 'The Edit' $$ Paper Ticket Sleeve Paper $ 33,000.00 Ticket Sleeve $$ Advertising Print $Advertising Print $$

8,610,861.00 $ $ 4,608,400.00 33,000.00 $ $ 33,000.00 9,216,800.00 $$

15,635,183.13 $ $ 8,610,861.00 33,000.00 $ $ 33,000.00 17,221,722.00 $ $ 9,216,800.00

18,912,359.08 $ $ 18,912,359.08 18,912,359.08$ 15,635,183.13 33,000.00 $ $ 33,000.00$ 33,000.00 33,000.00 31,270,366.26 $ $ 31,270,366.26 37,824,718.16$ 17,221,722.00

18,912,359.08 33,000.00 37,824,718.16

Prices based on $1,034 per sq meter at LHR Airport for 10 sq. meters . Cost doubled for maintence annually for each store. Prices based off $43,251 per screen including tax & installation. 7 Screens Per Store. Price & Payment Plan of Leica HDS7000 3D Laser Scanning System. Year 4 & 5 costs are 10% maintenance and updating technology Prices based off $20 per hour. 2 Hours per product @ 50 initial scans. Add 20% annually Fixed rate after initial investment Based on a 55% margin, or a 2.2 markup on goods sold Marketing / VM Based off of Rental per month divided by 2.2 Advertising based off average cost of 5 $10,000 ($50,000) per month for airport retail for 5 airport banners NAP spends 120,000 annually on Social Media Marketing. We took 5% of budget for aller-a-porter. 3% for Y1 Prices based on 10% of 20,000 total email marketing budget. Increase by 2% annually Prices based on 5% of total sales. Y1 based off projected y2 sales. Prices based off 650,000 brochures printed Prices based off 10% of total Revenue

Total Expenses $Total 5,810,901.00 61,033,463.95 $ $61,033,463.95 112,810,557.18 $ $112,810,557.18 194,716,747.29 $ $194,716,747.29 232,508,539.02 $ 232,508,539.02 Expenses $$ 5,810,901.00 EARNINGS BEFORE TAX $ (5,810,901.00) 31,134,536.05 $ $ 31,134,536.05 59,406,662.82 $ $59,406,662.82 117,986,915.31 $ $117,986,915.31 145,738,642.56 $ 145,738,642.56 EARNINGS BEFORE TAX $$(5,810,901.00)

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57


SALES PROJECTIONS SALES PROJECTIONS IN USD IN USD 2014 UNIT SALESUNIT SALES

2014 2015

Handbags $ Handbags $ $ - 84,300.00 $ Shoes $ - Shoes $ $ - 56,200.00 $ UNIT PRICEUNIT PRICE Handbags $ Handbags $ $ Shoes $ - Shoes $ $ -

1,000.00 $ 500.00 $

2015

2016

2016

2017

2017

2018

2018 NOTES

NOTES

Sales based onSales addition basedofon 1 addition of 1 new location implication new location implication annually annually $84,300.00 153,300.00 $ 153,300.00 $ 270,900.00 $ 270,900.00 $ 318,900.00 $ 318,900.00 Sales based onSales addition basedofon 1 addition of 1 new location implication new location implication annually annually $56,200.00 102,200.00 $ 102,200.00 $ 180,600.00 $ 180,600.00 $ 212,600.00 $ 212,600.00

$ 1,000.00 1,030.00 $ $ 500.00 $ 510.00

$ 1,030.00 1,060.90 $ $ 510.00 520.20 $

$ 1,060.90 1,092.73 $ Price 1,092.73 increasePrice 4% annually increase 4% annually $ 520.20 530.60 $ Price530.60 increasePrice 3% annually increase 3% annually

REVENUE BY REVENUE CATEGORY BY CATEGORY $ 287,397,810.00 $ 287,397,810.00 $ 348,470,640.30 $ 348,470,640.30 Handbags $ Handbags $ $84,300,000.00 $ 84,300,000.00 $ 157,899,000.00 $ 157,899,000.00 Shoes $ - Shoes $ $28,100,000.00 $ 28,100,000.00 $ 52,122,000.00 $ 52,122,000.00 $ 93,948,120.00 $ 93,948,120.00 $ 112,806,410.40 $ 112,806,410.40 TOTAL PROJECTED TOTAL PROJECTED REVENUE REVENUE $$ 112,400,000.00 $$ 112,400,000.00 $ 210,021,000.00 $ 210,021,000.00 $ 381,345,930.00 $ 381,345,930.00 $ 461,277,050.70 $ 461,277,050.70

Traffic Conversion Transactions 60% 40%

Heathrow 5 28,100,000 0.50% 140,500

Tokyo 23,000,000 0.50% 115,000

Hong Kong 39,200,000 0.50% 196,000

Amsterdam 16,000,000 0.50% 80,000

Units 84,300 56,200

69,000 46,000

117,600 78,400

48,000 32,000

2015

2016

2017

2018

84,300 56,200

153,300 102,200

270,900 180,600

318,900 212,600

100%

Handbags Shoes

58

59


NOISULCNOC

CONCLUSION

60

In conclusion, Aller-A-Porter strives to engage

lion passengers a year with an hour or so to kill

the Net-A-Porter customer in a retail experi-

adds up to serious spending power. So popular

ence that has not been done before. The In-

are the airport’s shops that last year sales per

teractive wall substitutes a brick and mortar

square foot at its retail outlets hit a staggering

retail space without the product, yet does not

£2,782 – making it one of the most productive

lack the customer experience or attention one

shopping destinations in the country (Neville).

would receive at a boutique. By retailing in

The departure lounge of LHR Terminal 5 ac-

exclusive spaces such as airports, specifically

counts for 450 million dollars of sales in acces-

and initially London Heathrow International

sories, clothing, jewelry and perfumes from top

Airport Terminal 5 (LHR) customers from

brands. (Merllery-Pratt) The terminal 5 experi-

all over the world can engage in a pure-play

ences is setting the bar for the future and may

retailer by interacting with three dimension-

compare the airport experience to the mall ex-

ally scanned products. This will help ensure the

perience. Some consumers may even do their

quality ensured with their product. This store

big seasonal purchases at the airport. Net-A-

creates a quick yet engaging way for custom-

Porter wants to get involved in an innovative

ers to experience a product on their own time

way, and we believe this initiative will set them

and with their own freedom. The expected

at the forefront of the digital domain while

outcomes of this initiative are quite high. Al-

penetrating their presence in the luxury retail-

though there will be progressive expenses due

ing industry even further into the competitive

to the inauguration of one new digital location

landscape. Net-A-Porter embodies a name that

annually until 2018, the high amount of traffic

is recognized and respected world wide. With

in a concentrated location makes up for this.

the power of their name, brands and innova-

In year 1, there will be no products sold due to

tion, the new way to shop “The Edit” is to digi-

promotion and testing and Aller-A-Porter will

tally see the real size and detailed versions of

take a loss of nearly $5 million dollars. With the

the products on an interactive wall, scan them,

opening in Y2, the 20 million customers will be

walk away, purchase it and have it home before

exposed to marketing initiatives in magazines,

you are. After all, there is noting more exciting

advertisements, and social media promotions.

than coming home from a spectacular vaca-

This plans to create a buzz for this new experi-

tion or stressful work trip to see a beautifully

ence consumers can only experience in these

wrapped matte black box and white ribbon

specific airports. At Heathrow alone, 70 mil-

waiting for you at the door.

61


APPENDIX / FURTHER READING

APPENDIX / FURTHER READING

Heathrow Airport Rental Guide Prices - Effective from 1st April 2013 Rent £ / sq ft

Terminal 1 Second floor office CIP Piers - standard ramp Piers - first floor Terminal 3 North Wing South Wing East Wing Departures ground floor R/O check-in Departures ground floor off back corridor Infill Offices CIP - Departures CIP - Arrivals Piers - standard ramp

Rent £ / sq M

Min

Max

£36.28 £37.73

£64.48 £72.57 £42.95 £44.41

£68.92 £36.28

£58.04 £64.48 £62.40 £49.35 £43.53 £64.48 £72.57 £72.57 £42.95

Min

Max

£390.49 £406.14

£694.08 £781.10 £462.33 £477.98

£741.82 £390.49

£624.79 £694.08 £671.72 £531.16 £468.59 £694.08 £781.10 £781.10 £462.33

Building 820 First and Second Floor Ground Floor Bays

£51.62 £54.42 £33.83

£555.61 £585.74 £364.19

D'Albiac House Bays Offices (Outer offices) Offices (Inner offices)

£30.45 £46.74 £45.43

£327.81 £503.07 £488.97

Terminal 4 NE Extension, Balcony Departures rear of check in Mezzanine airside Standard ramp CIP

£64.48 £49.35 £46.45 £42.95 £72.57

£694.08 £531.16 £499.99 £462.33 £781.10

£36.28

Terminal 5 CIP - T5A CIP - T5B/C T5A - Landside offices/support accom T5A - Airside offices/support accom T5A - Airside apron level support accom (Ramp) T5B/C - Airside offices/support accom T5B/C - Apron level support accom (Ramp) Desk Frontage Rates - All Terminals Check-In Sales and Reservation Transfer Information

£390.49

£79.81 £75.83 £69.96 £57.53 £45.11 £54.79 £44.03

£859.08 £816.21 £753.06 £619.23 £485.51 £589.80 £473.92

£504.69 £1,044.92 £504.69 £774.81

£1,655.78 £3,428.16 £1,655.78 £2,541.99

Unless otherwise stated: The rents are exclusive of Maintenance Rent and Heating Rent or Service Charge. All rents (except CIP) assume measurement based on net internal area. A discount of 10% is given for No Natural Light, unless all the accommodation in the category has no natural light. Where there is a price range, actual charge will be based on the overall quality and location of accommodation. Typically, new build will be at the top of range.

62

63


   

   

 

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NOTE: PRICES FROM ONLINE RETAILERS 2013.                        

  ONLY,        64              

65


66

67


APPENDIX / FURTHER READING

Direct Competition: Alexander McQueen Bally Barbour Bvlgari Burberry Cartier Chanel Collection Dior Dolce & Gabbana Dunhill Ermenegildo Zegna Etro-in Harrods Folli Follie French Connection Gucci Hackett London Harrods Hermes Hugo Boss Kurt Geiger LK Bennett Longchamp Michael Kors Miu Miu Montblanc Mulberry Paul Smith Paul Smith Globe Prada Ralph Lauren Salvatore Ferragamo Ted Baker Thomas Pink Tie Rack Tumi Valentino Zara

APPENDIX / FURTHER READING

John Lewis: John Lewis, a fashion brand, currently delivers online orders to 33 countries but only operates a few small brick-andmortar stores. This new store in Heathrow will showcase the “best of home fashion, gifting and seasonal ranges” and will be located on the top floor of the departure lounge (Hawkes). At the very least, this store should help drive online business. With more people shopping at airports these days, more and more luxury brands are moving in. “Verdict Research believes retail spend from overseas visitors will reach £9.7 billion this year, up 50.8 per cent on 2008. They expect it to soar by another 71 per cent by 2018” (Hawkes). John Lewis has the potential to become as much of a destination as Selfridges and Harrods. It’s premium department store competitors are key destinations for international customers, which will help, improve the brand recognition and hopefully drive footfall as well as increase web traffic.

68

69


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TOUCH CONFIGURATION

32-Touch Technology (32 inputs at the same time)

TOUCH TECHNOLOGY

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TOUCH SAMPLE RATE

200 fps

TOUCH RESPONSE TIME

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TOUCH ACTIVATION FORCE

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TOUCH INTERFACE

USB

TOUCH METHOD

Finger, gloved hand or any other pointer, Stylus

OBJECT RECOGNITION

Object shape recognition

TOUCH PRECISION

±2,7 mm

TOUCH DURATION

Unlimited

CALIBRATION

4-Point Calibration

OS

Win XP / Vista, Win 7 / Win 8, Mac OS X, Linux

SIZE

55“ (138.8 mm)

DIMENSIONS

1311 x 767 x 170 mm

WEIGHT

49 Kg.

ASPECT RATIO

16:9

RESOLUTION

1920x1080 px @ 60 Hz

BRIGHTNESS

700 cd/m2

PANEL

S-PVA

CONTRAST

4.000 : 1

VIEWING ANGLE

178° in all directions

COLORS

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RESPONSE TIME

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CONNECTIONS

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VESA

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OPERATING CONDITIONS

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255 W (410 W max.)

OS

Win XP / Vista, Win 7 / Win 8, Mac OS X, Linux

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70

- Wireless Remote Control - Batteries - Cable Cover - CD-ROM (user manual) - Clamp - Screws

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Integrated Windows 8 System

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SIZE

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Full-HD 1920x1080px

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11.635,00

12.235,00

11.795,00 MultiTouch Plus (32 touch points) €

13.435,00

1.510,00

32.990,00 MultiTouch Plus (32 touch points) €

34.870,00

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Full-HD 1920x1080px 700 cd/m2

910,00

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3.175,00 DualTouch (2 touch points)

4.085,00

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3.587,00 MultiTouch (6 touch points)

4.497,00

1092 x 635 mm

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3.777,00 MultiTouch Pro (12 touch points)

4.687,00

1168.4 mm diagonal

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4.495,00 MultiTouch Plus (32 touch points) €

5.405,00

Integrated Windows 8 System

1.510,00 Integrated Windows 8 System

1.510,00

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1.020,00

DualTouch (2 touch points)

5.225,00 DualTouch (2 touch points)

6.385,00

MultiTouch (6 touch points)

5.651,00 MultiTouch (6 touch points)

6.811,00

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5.926,00 MultiTouch Pro (12 touch points)

7.086,00

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1.355,00

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9.174,00

1540.5 x 909.2 mm

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9.424,00

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1.995,00 tba.


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Reports/ReportMainIndustry.aspx?SicCodeID=29&Report=ALLMARKETRESEARCHREPORTS&Process=IP&Type=GetReport&FileFor mat=PDF&ReportID=62383&FileName=0199-0537-2012.pdf&Vendo>. Gleaves, Steer D. “Assessment of Commercial Revenues at Heathrow Airport.” N.p., Mar. 2013. Web. 5 Nov. 2013. <http://www.caa.co.uk/ docs/78/HeathrowFinalReport_Redacted.pdf>.

http://www.heathrowairport.com/static/HeathrowAboutUs/Downloads/PDF/Heathrow-Retail-Presentation-2011-final.pdf***** Peak month is July

Parry, Jacob. “YVR Finalizes Plans For Luxury Outlet Mall.” Vancouver & BC Business News, Articles & Commentary. N.p., 27 Mar. 2013. Web. 12 Nov. 2013.

Newhouse, Doug. “Heathrow net retail income +2.6%.” TR Business. N.p., 23 Oct. 2013. Web. 5 Nov. 2013. <http://www.trbusiness.com/ index.php/this-week/news-in-detail/14086-heathrow-net-retail-income-up.html>.

Alexa. “Net-A-Porter.com.” Net-A-Porter.com Site Info. N.p., 2012. Web. 17 Nov. 2013. <http://www.alexa.com/siteinfo/Net-A-Porter.com>. “Geomagic Capture Overview.” Geomagic Capture Overview. N.p., 2013. Web. 17 Nov. 2013. <http://www.geomagic.com/en/products/capture/overview/>.

Conti, Samantha. “Luxury Retail Taking Off at Airports.” WWD. N.p., 13 Aug 2012. Web. 12 Nov. 2013. <http://www.wwd.com/retail-news/retail-features/luxury-retail-taking-off-at-airports-6147700>.

Hosea, Maeve. “Preflight Experience Hits Height of Luxury.” Marketing Week. BDRC Continental, 15 Nov. 2013. Web. 17 Nov. 2013. <http:// www.marketingweek.co.uk/news/the-marketing-week/4008586.article>.

Leonard, Heather. “There Will Soon Be One Smartphone For Every Five People In The World.” Business Insider. N.p., 7 Feb. 2013. Web. 13 Nov. 2013. <http://www.businessinsider.com/15-billion-smartphones-in-the-world-22013-2>.

Luxury Institute. “Online Only Luxury Retail.” Luxury Institute. N.p., 11 Sept. 2012. Web. 15 Nov. 2013. <http://luxuryinstitute.com/ blog/?s=Net-A-Porter>.

Cook, Frances. “A retail revolution – new strategies from London’s Gatwick and Heathrow.” Airporttechnology.com. N.p., 15 Oct. 2013. Web. 4 Nov. 2013. <http://www.airport-technology.com/features/feature-retail-revolution-new-strategies-london-gatwick-heathrow/>.

McKininsy & Company. “From Customer Experience to Impact.” Digital Luxury Experience 2012 (2012): n. pag. Web. 14 Nov. 2013. <http:// billonbusiness.files.wordpress.com/2012/10/0310442029124081005file.pdf>.

Hawkes, Steve. “John Lewis prepares for take-off with store at Heathrow Terminal 2.” The Telegraph. N.p., 2 July 2013. Web. 7 Nov. 2013. <http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10153165/John-Lewis-prepares-for-take-off-with-store-at-Heathrow-Terminal-2.html>.

MSU. “Net-A-Porter.COM DIGITAL STRATEGY.” New Media Drivers License. N.p., 26 Nov. 2012. Web. 13 Nov. 2013. <http://newmediadl. cas.msu.edu/homework/755/96812>.

http://luxurytalentmanagement.com/from-the-book/case-study-Net-A-PorterShea, Erin. “Net-A-Porter boasts same-day Hamptons delivery via aerial advertising.” Luxury Daily. N.p., 13 Aug. 2013. Web. 1 Nov. 2013. <http://www.luxurydaily.com/Net-A-Porter-boasts-sameday-hamptons-delivery-via-aerial-advertising/>. Sekula, Anna. “Net-A-Porter Brings Karl Lagerfeld Collection Offline With Pop-Up Shop - See more at: http://www.bizbash.com/Net-APorter_brings_karl_lagerfeld_collection_offline_with_pop-up_shop/new-york/story/22382.”BizBash. N.p., 3 Feb. Web. 1 Nov. 2012. <http:// www.bizbash.com/Net-A-Porter_brings_karl_lagerfeld_collection_offline_with_pop-up_shop/new-york/story/22382/#sthash.0cQvQRt4. dpbs>. Moth, David. “ Net-A-Porter bets on social commerce with new ‘Netbook’ iPad app.” Econsultancy. N.p., 17 Sept. 2013. Web. 1 Nov. 2013. <http://econsultancy.com/us/blog/63414-Net-A-Porter-bets-on-social-commerce-with-new-netbook-ipad-app>. Watson, Sarah. “Net-A-Porter’s app navigation secrets.” Creative BLOQ. N.p., 15 Oct. 2013. Web. 1 Nov. 2013. <http://www.creativebloq. com/app-design/net-porter-s-app-navigation-secrets-10134881>. Shea, Erin. “Net-A-Porter targets Hong Kong city dwellers with public tram takeover.” Luxury Daily. N.p., 13 Aug. 2013. Web. 20 May 2013. <http://www.luxurydaily.com/Net-A-Porter-boasts-same-day-hamptons-delivery-via-aerial-advertising/>. Chaffey, Dave. “What is the best frequency for email marketing?.” Smart Insight. N.p., 25 Jan. 2011. Web. 3 Nov. 2013. <http://www.smartinsights.com/email-marketing/email-communications-strategy/best-frequency-for-email-marketing/>. Indvik, Lauren. “’Elle’ Invites Readers to Shop Net-A-Porter On-Site.” Mashable. N.p., 27 Mar. 2013. Web. 3 Nov. 2013. <http://mashable. com/2013/03/27/elle-Net-A-Porter/>. Mellery-Pratt, Robin. “Airport Retail Flying High.” Business of Fashion. N.p., 5 Sept. 2013. Web. 3 Nov. 2013. <http://www.businessoffashion.com/2013/09/airport-retail-flying-high.html>. Neville, Simon. “Wait in lounge: how Heathrow cashes in on wealthy time-poor travellers.” Business of Fashion. N.p., 3 Aug. 2013. Web. 3 Nov. 2013. <http://www.theguardian.com/business/2013/aug/04/heathrow-retail-outlets-designer-brands>.

“Net-A-Porter : Brand, Product, and Company Positioning.” Net-A-Porter : Brand, Product, and Company Positioning. N.p., 5 May 2013. Web. 15 Nov. 2013. <http://Net-A-Porter-brand.blogspot.com/2013/05/brand-product-and-company-positioning.html>. Net-A-Porter. “Net-A-Porer Media Kit.” Media Kit. N.p., 2013. Web. 15 Nov. 2013. <http://www.Net-A-Porter.com/Net-A-Porter /content/2011/images/pdfs/Net-A-Porter_media_information.pdf>. “Net-A-Porter.COM | Luxury Designer Fashion | Women’s Designer Clothes, Shoes, Bags & Accessories.” Net-A-Porter.COM | Luxury Designer Fashion | Women’s Designer Clothes, Shoes, Bags & Accessories. Net-A-Porter, 2013. Web. 15 Nov. 2013. <http://www.Net-A-Porter. com/>. Press, Associated. “Smithsonian Unveils 3D Scanning, Printing Initiative to Take Artifacts beyond Museum Walls.” Washington Post. The Washington Post, 13 Nov. 2013. Web. 17 Nov. 2013. <http://www.washingtonpost.com/national/smithsonian-unveils-3d-scanning-printinginitiative-to-take-artifacts-to-beyond-museum-walls/2013/11/13/c78c4d68-4c42-11e3-bf60-c1ca136ae14a_story_1.html>. “Smithsonian 3D Scanning.” 3ders.org. N.p., 2013. Web. 17 Nov. 2013. <http://www.3ders.org/articles/20131113-smithsonian-launches-3dscanning-and-printing-initiative-to-open-up-history.html>. Soroway, Bibby. “Net-A-Porter Sees Sales Increase by 55 per Cent.” - Telegraph. Telegraph UK, 13 Jan. 2013. Web. 15 Nov. 2013. <http://fashion.telegraph.co.uk/news-features/TMG9800446/Net-A-Porter-sees-sales-increase-by-55-per-cent.html>. “UK Shopping Habits Transformed by Technology, KPMG Says.” BBC News. BBC, 4 Dec. 2011. Web. 17 Nov. 2013. <http://www.bbc.co.uk/ news/business-16024079>. WARC. WARC Trends Tool Kit 2012. Rep. N.p.: Deloitte, 2012. WARC. Web. 17 Nov. 2013. Kapelke, Chuck. “Seeding a Multiscreen Strategy: Expert Advice on Marketing to Consumers across Screens.” Seeding a Multiscreen Strategy: Expert Advice on Marketing to Consumers across Screens June-July 2013: n. pag. WARC. Web. 17 Nov. 2013. Accessory Global Market: http://globalbb.onesource.com/Web/Reports/ReportMainIndustry.aspx?SicCodeID=29&Report=ALLM ARKETRESEARCHREPORTS&Process=IP&Type=GetReport&FileFormat=PDF&ReportID=62383&FileName=0199-0537-2012. pdf&VendorName=Datamonitor

“Global Luggage and Leather Goods.” MarketLine Industry Profile. N.p., Feb. 2013. Web. 4 Nov. 2013. <http://globalbb.onesource.com/Web/

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