EVERLANE FINAL PORTFOLIO

PORTFOLIO

KAITLIN MARTELLI

TABLE OF CONTENTS THE BRAND SWOT ANALYSIS COMPETITIVE ANALYSIS

3 5 6

CUSTOMER PROFILE TREND ANALYSIS FABRIC STORY

9 11 14

COLLECTION KEY ITEMS STYLE SHEETS QUICK COSTING

16 17-18 19

MERCHANDISING PLAN ASSORTMENT DISTRIBUTION ASSORTMENT PLAN

20 21 23-26

PURCHASE ORDER REFERENCES

27 28-30

THE BRAND

‘”We believe we all can make a difference.

Our way: Exceptional quality.

Ethical Factories. Radical Transparency.”

(Everlane, Our commitment. 2022)

Minimalist, San Francisco based retailer founded in 2010. At the age of 25, Michael Preysman built this brand as a solely online retailer with a goal to eliminate middlemen to keep prices low and margins high. Through, what Preysman calls “Radical Transparency” along with his passion for branding and storytelling is what has generated this brand to become what it is today. The simplistic design throughout a wide range of products has allowed the brand to focus on quality and honest prices. To remain authentic and honest, the brand discloses the production costs of products, along with what the retail cost would be in a brick-and-mortar location (The Business of Fashion, 2022).

By 2018, Preysman recognized the need of brick-and-mortar locations.

In order to compete with competitors like Reformation, Madewell, and H&M, nine new store locations were launched (Segran, 2018, p.1). The first being in New York City and the second was based in San Francisco, where the headquarters is currently located.

Other storefronts are in Brooklyn, Seattle, Washington D.C, Boston, Los Angeles and Palo Alto (Everlane, n.d).

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“RADICAL TRANSPARENCY” Everlane has made commitments building personal relationships within each factory they use to help manufacture their products.

Everlane has signed a ”Transparency Pledge”, that discloses the minimum standard for all supply chain in the garment and footwear industry (Transparency Pledge, 2022). All factory locations and compliance guidelines they follow are available on Everlanes website (Everlane, Our factories, 2022). Each factory is given an evaluation and compliance audit that discusses wages, hours and overall environment.

Regarding pricing strategies, Everlane believes in being truthful. The consumers can see how much each item costs to produce in terms of materials, labor and transportation (Everlane, Our Prices, 2022). The pricing is seen as moderate with tops averaging $50 and bottoms $90 (Everlane n.d).

In other efforts to remain transparent, the company is working towards reducing the amount of carbon emitted throughout the entire supply chain. The phenomenon of global warming is largely caused by the amount of carbon emitted into the atmosphere (Everlane, Our Carbon Commitment, 2022). The fashion industry alone is responsible for 10% of global carbon emissions (Trent, 2022). Everlane has signed the Paris Agreement, which is an international treaty on climate change with goals to collectively limit global warming (United Nations, The Paris Agreement, 2022). Through Science-Based Target initiative (SBTi), the company has begun to understand where their highest are. Everlanes goal is to have 55% lower emissions per product by 2030. Some of the current actions being done include the increase of recycled fabrics, the adoption of regenerative agriculture practices, converting to renewable electricity and the reduction of air shipments of materials (Everlane, Our Carbon Commitment, 2022).

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SWOT ANALYSIS

STREGNTHS

Everlane has become a successful, leading retailer with transparent pricing initiatives that showcase cost breakdowns of products. This has allowed consumers to understand pricing strategies. It is the only retailer that is offering “Radical Transparency” (Mustafa 2022).

Through this transparency, Everlane has authorized information and manufacturing data (Babicheva 2019). Their direct-to-consumer business model has eliminated middlemen, decreasing costs throughout the supply chain (Sivakumar 2020). Regarding textiles, Everlane uses only organic cotton and all “materials made of polyester and nylon are now made from certified recycled fibers” (Everlane, Sustainability, 2022).

WEAKNESSES Everlane has built their brand in a positive way throughout the years, but gaps remain in their business model. Though the company is promising transparency, they lack company wide certifications. This allows the brand to create any claim without any third-party verification to prove these claims (Thompson 2022).” A main weakness within the product assortment is the depth and consistency within the sizing distribution in comparison to their competitors. Everlane focuses on quality basics and inclusive sizes, but it does not translate throughout the entirety of its offerings. Due to the brand initially being an entirely online retailer, Everlane has not created as many opportunities to build as many connections with their consumers. This could be one of their biggest weaknesses as the lack of marketing and physical locations could be detrimental to their sales and brand reputation.

OPPORTUNITIES There are many areas for improvement brand-wide. While Everlane does focus on transparency, they could improve it by including exact compliance scores and what each factory is working towards (Imperfect Idealist, 2021). Throughout the fashion industry, there has always been a stigma on “plus size” or “extended sizing”, but what does that really mean when there is no ”normal” size. Since Everlane focuses largely on basics and simplistic designs, the brand has an opportunity to increase their competitive advantage. By offering a deeper size distribution in terms of waist and length, the brand could be seen as an inclusive, sustainable brand.

THREATS Some threats posed on Everlane are created by their competitors. For example, Reformation has been named a more sustainable brand with better conduct codes that trace their supply chain to improve working conditions. They have also continuously collaborated with Patagonia, which has boosted their sustainability initiative to consumers (Mantor 2016). Everlane puts a large focus on recycled materials, but what about after the consumer is done wearing their products? Madewell has implemented a buyback program that allows your old clothing to be put back to use if effort to keep the materials circulating the economy, rather than ending up in a landfill (Segran 2019).

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COMPETITIVE ANALYSIS Everlane’s top competitors consist of lifestyle companies that focus on contemporary women’s ready to wear. Reformation, Madewell, Rebecca Minkoff, and Lulus attract the same type of consumer, making these brands competitors. Focusing on Everlane, Reformation and Madewell; these brands all target “conscientious young people with an emphasis on the millennial market” (Peckover 2020). As of 2018, the womenswear market value within the united States amounted to $322 billion U.S. dollars with expected increase of 20% by 2025 (Smith 2022). Everlane is still a young and growing brand in comparison to top brands within the market that have global exposure. This is where Everlane, Reformation and Madewell are much alike in terms of monetary revenue and size of the company. Figure 1.1 displays the 2022 domestic revenue of Everlane, Reformation and Madewell. Everlane takes a spot right in between it’s competitors with $218.7 million in revenue. Figure 1.2 displays these three brands domestic revenue in comparison to the entirety of the women's ready to wear market. It is visible that these brands together hardly make up a percentage of the total market share.

Figure 1.1

EVERLANE COMPETITORS 2022 REVENUE

REFORMATION $124.7 MILLION 16.3%

EVERLANE $218.7 MILLION 28.7%

MADEWELL $419.6 MILLION 55.0%

Figure 1.2

US WOMEN'S READY TO WEAR MARKET EVERLANE REFORMATION MADEWELL 0.2%

REMAINING MARKET 99.8%

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EVERLANE

MEN

WOMEN

APPAREL

SHOES

SHIRTS &

ACCESSORIES SHORTS & SKIRTS

PANTS & DENIM

TOPS

DRESSES & JUMPSUITS

ACTIVEWEAR

SWEATSHIRTS & SWEATPANTS

OUTERWEAR

SWIMWEAR

UNDERWEAR

Figure 1.3 REFORMATION

WOMEN SHOES PANTS & SHORTS

TOPS

KNITWEAR

SKIRTS & SETS

DRESSES & JUMPSUITS

DENIM

ACTIVEWEAR

APPAREL

LOUNGERWEAR

OUTERWEAR Figure 1.4

Figure 1.5

MADEWELL

MEN

WOMEN APPAREL

SHIRTS &

TOPS

SWIMWEAR

SHOES PANTS & DENIM

ACCESSORIES SHORTS & SKIRTS

JACKETS & COATS

JUMPSUITS & OVERALLS ACTIVEWEAR

DRESSES

PAJAMAS

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LINE DEVELOPMENT

Everlane has created a large customer base that has been generated by more than just their product offering. They have built loyalty and respect through their minimalistic approach to generating profit while being a top competitor within sustainable womenswear brands (Rusi 2020). The brand has used their platform in a strategic way that has captured those seeking inclusivity, transparency and sustainably greener lifestyles. The brand markets itself as an inclusive brand, but when looking into the products, these products are not actually taken seriously by the brand. For example, the denim that is marketed as being a ”long length” is only a half inch longer than the regular length and some are the same length. The brand lacks inclusive sizing, regarding tall and petite women. By introducing these products, a larger market opportunity could be generated (Duan, 2018). The reason brands refuse to integrate additional sizing is the cost concern in turn diminishing marginal profit. To achieve the margins the brand has now, prices would have to all be adjusted or the extended sizing would have to have separate sizing (Duan, 2018). As the expenses of producing the product rise, so does the market. By expanding the market Everlane is currently in, a larger consumer base will be targeted, inherently generating a higher profit.

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MEET EMMA Emma is Everlane’s target customer. Emma is a 27-yearold, living in New York City.

She works as a promotions manager for Mullen Advertising, making $88,035 after taxes (Monster, Most

popular jobs for Millennials).

Emma enjoys photography, Pilates, exploring the city, and spending time with her friends from college. Emma shops at Everlane’s Prince Street location about every other month spending $500.

Emma struggles finding pants she needs a longer length that Everlane does not offer.

She also shops at Reformation, Madewell and lululemon. She keeps up with trends but focuses on buying timeless pieces that can be worn throughout different seasons. Her style inspiration comes from social media, looking up to people like Matilda Djerf and Hailey Bieber (Digital Media Ninja).

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TARGET CUSTOMER Everlane’s target market is generated towards younger millennials and older generation z. Their ideal consumer is between the ages 18 and 35 and are aware of the impact that they have on the earth. 95% if their consumers have at least some college education (Mills 2017).

Not everyone fits into the Everlane market because of the product offering.

Many people see overpriced basics but are unaware of what they are buying into. Millennials, now more than ever are aware of their carbon footprint and are socially aware of sustainable initiatives brands are doing to eliminate waste.

Millennials are becoming brand loyal to Everlane for ethics and morals the company stands for, more than the product itself (Inc. Study: Millennials Are the Most Brand-Loyal Generation, 2022).

The target demographic is described as “conscientious young people” with an emphasis on the millennial market. As people within this market are looking for pieces that are mature but not dated, Everlane has exactly that. These consumers are looking more into their social responsibility than the newest trends throughout social media (Peckover 2019).

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TREND ANALYSIS Trousers, Suits & Sets A/W 22/23

Autumn/Winter 22/23 trends are geared towards suiting a flexible lifestyle that combines both the aesthetic for outdoors and a clean, put-together look (WGSN Buyer’s Briefing A/W 2022). As casualization continues to dominate the market, “unstructured suits that are interchangeable and easy to layer” will reiterate the idea of versatility (WGSN, Catwalk Analytics, 2022). The goal is to take simple, traditional occasion pieces and put them to use in daily wear. Looks will be clean and understated, with focus on detail. The suits on the rise are boxy and will be seen longer to adjust to the more casual appeal. Autumn/Winter 2022 is recognizing the need for comfort while remaining sophisticated. We are taking the pieces we already have in our closets to revamp a new staple wardrobe that will be translated season to season. As we all have been at home for so long, some will be returning to the office, so we will see an updated business look with pleats and tailoring that will be loose against the body, creating a casual look. Looking back to the 1960’s, monochrome and knits will play a huge role in these gender blurring silhouettes and timeless designs (Trochu 2022).

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INSPIRATION Everlane’s Autumn/Winter 2022 collection is put together and inspired by current trends. Everlane is a brand that does not take too many risks when it comes to silhouette. The company focuses on creating these timeless designs that are meant to be worn for more than just a season. Everlane takes so many initiatives to implement sustainability through not only their supply chain , but through their design as well. Everlane will be following the upcoming trends for the season, which already align with their business model. The look will be sophisticated, yet casual and put together. Silhouettes will be low tailored, flowing with the body, while still focusing on detail. We will see pleats, wide legs boxy blazers and monochromatic looks that are inspired from looks that we have seen time and time again. These highquality basics and timeless statement pieces will capture attention solely by its quality. Everlane is not one to be so open to prints, so minimal prints will be used, like houndstooth, pinstripe, checker.

Colors used within this collection will be seasonal but also align with Everlane’s timeless ideals.

AUTUMN / WINTER 22 / 23

12-0562 14-1305 16-0532 18-1050

19-1223

FABRIC STORY

The fabrics used throughout this collection have been sourced with care, prioritizing natural fibers, and the use of recycled synthetic fibers when needed. We will be looking at wool, organic cotton, and tactile knits. Jersey knit is seen as ”second skin” as a layering piece. This fabric will remain profitable as the versatility is unmatched (WGSN, Collection Review, 2022). Organic cotton will be used throughout the entire line that is easily transitioned throughout the season.

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The WGSN Autumn/Winter 22/23 global color forecast for women’s fashion, analyzed three color palettes: Seasonal Colour, Annual Colour and Long-Term Colour (Clark, 2022). The seasonal palette introduces the expected array of earthy tones and neutrals, while also incorporating pops of color. The dark oak is used throughout this collection as a transseasonal color, meant to highlight the lighter tones. The annual colour palette typically showcases the “fashion colors”, the ones that aren’t meant to last over many seasons. To stick to the sustainable design process, that follows through with color as we took the greens and toned them down to create the moss green for the season. The long-term palette is what this collection is inspired by, as it focuses on flexibility and longevity (WGSN, Global Colour Forecast A/W 22/23). It aligns with Everlane’s sustainable initiative in creating timeless pieces through a color story that will not go out of style.

CLOUD

12-0562

MUSHROOM 14-1305

MOSS

HONEY GINGER

DARK OAK

SUBTLE PINSTRIPE

CLEAN CHECKER

16-0532

18-1050

19-1223

COLLECTION KEY ITEMS

Key items for Everlane’s Autumn/Winter launch include the ribbed knit turtleneck, twill button down, slow flare double pocket pant and the tweed overcoat. The key items are a combination of basics and predicted items for the season.

The total collection includes 9 pieces that can all be put together to build a capsule wardrobe.

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STYLE SHEETS

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QUICK COSTING

This table below displays the estimated total fabric costs for each individual style listed within the new Autumn/Winter 2022 collection. These prices have been calculated in order to successfully buy each item for the New York City, Prince Street Location for the month of November. With some changes made to the fabric story and style sheets, appropriate pricing has been calculated to accommodate larger style ranges for each style. Due to the changes within the fabrics, all styles and sizes are now able to be bought listed in the revised style sheets.

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MERCHANDISING PLAN BUYING SEASON: AUTUMN/WINTER PRODUCT CATEGORY: WOMEN’S CONTEMPORARY

This six-month merchandising plan showcases the planned total sales for the entire season for the Prince Street flagship, in New York City. The planned total sales is estimated to be $105,000.

The month with the highest planned sales is December at $26,250. In interest of holiday shopping and the large purchase order for November, those two months should see the most traffic. at For the month of November, our planned retail purchases are $36,435. The purchase order and apparel distribution is created based on the calculations within this merchandising plan. Below are the. Calculations for the month of November are listed below.

Monthly Planned Sales ($) = LY Monthly Sales % * Season Total November Planned Sales = 18%* $105,000 = $18,900 BOM Retail Stock = Stock-to-Sales Ratio * Monthly Planned Sales November BOM Retail Stock = 2.0 * $18,900 Markdown ($) = Markdown % * Monthly Planned Sales November Markdowns $ = 15% * $17,900 = $2,835 Planned Retail Purchases = Monthly Planned Sales + Markdowns + EOM - BOM November Retail Purchases = $18,900 + $2,835 + $52,500 - $37,800 = $36,435 Percentage of Initial Markups = Planned Retail Purchases * (100% - Markup Percentage) November Initial Markups = $36,435 * (100% - 60%) = $14,574 EOM Stock = BOM Retail Stock of the next month November EOM = December BOM = $52,500 Total Stock-to-Sales Ratio = BOM Retail Stock / Total Sales Season Total Ratio = $255,885 / $105,000 = 2.4

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ASSORTMENT DISTRIBUTION

This assortment distribution is based on the WGSN buyers brief for Autumn/ Winter 2022, along with extensive brand research of bestsellers and what their consumer is looking for.

The November distribution is focusing on bottoms and outer layers, in efforts to create timeless looks that can be worn together or on their own. Everlane’s website highlights their quality t-shirts, button downs and knitwear, making it clear that these items are a necessity throughout the assortment budget. Their timeless bestsellers consist of their cashmere crewneck, oversized blazer and ribbed long sleeve crew (Rosmarin 2020).

Though they are bestsellers, they are placed at a lower price point, meaning we can produce a larger quantity at a lower production cost. With, a lower budget is listed for tops, a larger budget is allocated for bottoms and outerwear in order to accommodate the inclusion of different lengths and a larger assortment of size.

The goal of this style distribution is to incorporate a wider range of sizes to make people aware that clothing is meant to fit them, not the other way around. When looking at pant sizes, the average women in the United States above the age of 20 is a size 32 waist (Nunes 2021). Only 13% of brick-andmortar retailers in women’s clothing offer a size 32 or larger (Velasquez 2018). Not only is the lack of waist size a problem, but the need of different lengths in bottoms is crucial in attempt of inclusivity within the sizing of the brand.

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This color distribution is a mix of all three color palettes analyzed for this upcoming season. Dark Oak is in the spotlight this season. This color, along with cloud makes up almost half of the distribution together. The dark oak is meant to be used to contrast all the other earthy tones to bring newness and highlight the lighter tones (Clark 2020). The prints used within the line are understated and revived classics that continually redone in new ways each season while remaining their edge.

Everlane does not play much into prints, so The prints will be used on one or two items throughout the distribution.

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ASSORTMENT PLAN The assortment plan shown only consists of the collection key items, but all items within the style sheet will be bought for the month of November.

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PURCHASE ORDER This table displays the final purchase order for the month of November for Everlane’s Prince Street location in New York City. The planned retail sales budget calculated, amounted to $36,435. The Purchase order is $50 under budget, totaling $36,385.

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WGSN login. Retrieved May 3, 2022, from https://www.wgsn.com/fashion/article/93540 Casey, C. (2022, March 31). Collection Review: Key Items-Women's Cut & Sew A/W 22/23. WGSN login. Retrieved May 2, 2022, from https://www.wgsn.com/fashion/article/93284 Clark, J. (2020). Global colour forecast A/W 22/23. WGSN. Retrieved April 17, 2022, from https://www.wgsn.com/beauty/p/article/89496?lang=en&_fsi=q0cceYyT Figure 1.1-1.2 data retrieved from https://ecommercedb.com/en/store/everlane.com Figure 1.3 : Women's – everlane. (n.d.). Retrieved May 3, 2022, from https://www.everlane.com/collections/womens-all Figure 1.4 : Sustainable Clothing and accessories: Reformation. Sustainable Women’s Clothing and Accessories. (n.d.). Retrieved May 3, 2022, from https://www.thereformation.com/?gclid=EAIaIQobChMI_uTTrrXI9wIVWTizAB0HZA CFEAAYASAAEgIPV_D_BwE Figure 1.5 : 20% off summer faves. Madewell. (n.d.). Retrieved May 2, 2022, from https://www.madewell.com/womens/sale/20-off-summerfaves?srcCode=Paid_Search%7CSearch_Brand%7CGoogle%7CPMG%5EG%5E MW_BR_US_EN_X_Core_Exact_X%5Emadewell&NoPopUp=True&gclid=EAIaIQo bChMI24mUqrbI9wIV9MmUCR0VTwQkEAAYASAAEgIjXfD_BwE&gclsrc=aw.ds

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IMAGE REFERENCES Image 1.1 Retrieved from https://www.ignant.com/category/architecture/?_load_more=3&_paged=3 Image 1.2 Retrieved from https://www.pinterest.com/pin/416723771777372802/ Image 1.3 Retrieved from https://www.pinterest.com/pin/258816309826633235/ Image 1.4 Retrieved from https://www.pinterest.com/pin/433471532892375963/ Image 1.5 Retrieved from https://www.pinterest.ca/pin/196821446206423422/ Image 1.6 Retrieved from https://www.wgsn.com/fashion/article/93540 Image 1.7 Retrieved from https://www.wgsn.com/library/results/ Image 1.8 Retrieved from https://www.wgsn.com/library/results/ Image 1.9 Retrieved from https://thefabricofourlives.com/cotton-fabrics/poplin Image 2.0 Retrieved from https://www.wgsn.com/library/results/ Image 2.1 Retrieved from https://www.wgsn.com/library/results/ Image 2.2 Retrieved from https://www.ignant.com/category/architecture/?_load_more=3&_paged=3 Image 2.3 Retrieved from https://www.pinterest.com/pin/449234131581786612/ Image 2.4 Retrieved from https://www.pinterest.com/pin/175851560436073535/?amp_client_id=CLIENT_ID(_)&mweb_unauth_id=%7B%7Bd efault.session%7D%7D&amp_url=https%3A%2F%2Fwww.pinterest.com%2Famp%2Fkarenlee45%2Fwhite%2F Image 2.5 Retrieved fromhttps://www.wgsn.com/library/results/757e8eed77de376def62521847966133/turtleneck mage 2.6 Retrieved from https://www.pinterest.com/pin/645774034069169517/ Image 2.7 Retrieved from https://www.wgsn.com/library/results/757e8eed77de376def62521847966133/button%20up Image 2.8 Retrieved fromhttps://www.wgsn.com/library/results/1ef9bf68ea5bbd91c0272c9e36c641d3/flats Image 2.9 Retrieved from https://www.wgsn.com/library/results/757e8eed77de376def62521847966133/trouser Image 3.0 Retrieved from https://wdrfree.com/stock-vector/pants-fashion-flat-technical-drawing Image 3.1 Retrieved from https://www.vectorstock.com/royalty-free-vector/outer-fashion-flat-sketch template22-vector-31650090 Image 3.2 Retrieved from https://stock.adobe.com/ee/search?k=technical+drawing+jacket Image 3.3 Retrieved from https://www.wgsn.com/library/results/757e8eed77de376def62521847966133/overcoat Image 3.4 Retrieved from https://www.moodfabrics.com/plum-gray-organic-cotton-jersey-fc10416 Image 3.5 Retrieved from https://www.fashionfabricsclub.com/p312425_harvest-gold-lyocell twill?utm_source=google&utm_medium=cse&utm_term=93626&gclid=CjwKCAjwo8 SBhAlEiwAopc9W0NrSXn3oUGXnuM_s29Kq2z_VQRHWRoRid_D1p0bUMGdm0GqqrwmRoCXHUQAvD_BwE Image 3.6 Retrieved from https://www.moodfabrics.com/helmut-lang-black-cupro-twill-lining-423314 Image 3.7 Retrieved from https://www.moodfabrics.com/applications/basics/stratton-nutmeg-solid-organiccotton-twill-fc8710 Image 3.8 Retrieved from https://ineedfabric.com/products/60-medium-weight-denimfabric?variant=35999841255574&currency=USD&utm_medium=product_sync&utm_source= google&utm_content=sag_organic&utm_campaign=sag_organic&utm_campaign=gs-2021-0529&utm_source=google&utm_medium=smart_campaign&gclid=CjwKCAjwo8SBhAlEiwAopc9Wy75x9CaXWsEASUTSKZocNay12Fhj1sNKQlTWusi7Ko9exd58Vq1RoC_fUQAvD_B wE Image 3.9 Retrieved from https://nickoftimefabric.com/products/brown-herringbone-wool-coating-wovenfabric-sku 5301?variant=28416815923264&currency=USD&utm_medium=product_sync&utm_source=g oogle&utm_content=sag_organic&utm_campaign=sag_organic&gclid=CjwKCAjwo8SBhAlEiwAopc9W0f5NeVIeVdipIrREUX16PImRhXhilQLLz-Xim2lbJZJECqucTN1TRoC2LUQAvD_BwE

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