CONCEPT SHOWROOM & AGENCY Business proposal
BRAND p4-5 1 p6 1.2 p7 1.3 2 p8-9 3 3.1 p10-11 3.2 p12-13 3.2.1
MARKETING The market (trend map) The brand concept Mission, Vision statements & Social responsibility and ethics Customer profile Brand Identity Brand statement and design Brand persona
p40-41 p42-43 p44-45 p46 p47 p48
E X T E R NA L A NA LY S I S p14-15 p16 p17 p18
Competitor analysis Competitive edge Brand positioning SWOT
P R O D U C T, P L AC E , LO G I S T I C S p20 p21 p22-23 p24 p25 p26 p27 p28-29 p30 p31-35
p36 p37 p38-39
Services Value Merchandise planning Pricing Profitability selling dates organizational structure financials Showroom location and premises -decompression zone, discovery core, Experiential Retail, Buyers corner, Associates, Digital components i.Website ii.App Execution steps
Touchpoints & buyer readiness Intergrated Marketing communications, situation analysis Promotional mix Communications strategy Execution time-line Risk, contingency and Projections
Executive Summary This business proposal is for an Independent agency representing curated Fashion and Lifestyle brands for woman aged 45 and over who are contemporary, modern and ardent in there approach to life and fashion. The book is composed of two interweaving components. The first is the Brand concept which communicates the KOPO brand and provides context by analysing the market trends which have driven and informed the concept. Within this are some marketing elements such as competitor analysis. It looks at the factors that make the concept relevant to today’s consumer and shows what sets it apart as a brand amongst its competitors. The business model is a hybrid mix of a fashion marketing agency, showroom and retail platform with a focus on exhibiting and experience. The business proposal shows how this hybrid mix effects the brand positioning between Business to customer commercial markets and service led business to business. In order to demonstrate the credibility of the brand it explains how the brand would operate logistically as well as some considerations to the financial health of the concept which is projected to be cash positive by its second year. After reading the ‘Brand’, ‘External analysis’ and ‘product, place and logistics’ sections the reader should have a good understanding of the Brand concept, values of the brand and how the brand is proposed to operate as a business propositon. The second component of the brand proposal then considers how this concept can be strategically executed, communicated and marketed. It considers the different customer touch-points and the Brand approach to how the Brand would enter the market and create brand equity through a differentiated marketing strategy and promotional mix. To conclude there is some discussion of the risks and contingencies and some thoughts as to projections for the future of the brand. By the end of the Book the reader should have the necessary understanding of the overall business proposal to see the viability of the business.
Context & trend mapping
This page shows a mapping of trends in order to provide context to the concept. Looking at the rellevant market environments enables effective positioning of the brand and understanding of the potential of the business model and where it sits in the wider market. The mapping looks at market trends and factors (in black) and
FRAGMENTED MARKET PLACE
Statistics from Pure London reflect tha the number of international exhibitors are rising but numbers of International atendees are in decline. LSNGlobal used examples such as ‘Revolver’ (Formally vision trade show) and ‘Gallery’ which have both changed their formats to be spread across smaller venues. The London fashion week schedule is spread across the city. Retailers/buyers are becoming more accustomed to conducting sales in this way. This is giving rise to the continued need for agents frepresenting brands wanting to enter new markets as it becomes more time consumeing and work intensive for brands to handle these sales themselves. Particularly international brands.
There is an influx of entrepeneurs opening small business’, selling product and fashion. This has meant a greater demand for business’ offering services to these smaller enterprises.
Tradeshows are becoming more localised and dispersed in their demographical locations.
FASHION SEASONS Seasonless style Fashion Industry has been moving away from its traditional seasons and designers are beggining to design more seasonless collections. WGSN reported on this macro trend which included case studies showing that designers are moving away from designing for seasons. Fashion seasons are becoming less important to fashion Industry operations. Seasonal cycles have become untenable and the industry is re-inventing products and services that can cut across seasons, generations and demographics. Designers are creating seasonless and durable collections designed to outlast traditional fashion cycles as a response to the unsustainable fashion calendar. “Always-in-flux luxurians are driving this new seasonless direction” reports WGSN. Statistics from a report commisioned for Nesta explains tthat Buyers wait for Paris fashion week which is the flast and most commercially succesful to place their orders but reported that 80% of buyig budgets are spent before this.
Increasing numbers of small start up labels and independent stores.
The showroom is one such agency and gives a platform for brands to be able to access resellers and execute Brand building and marketing strategy. Buyers, Press, and Industry are able to physically engage with product that may not have a physical platform creating a more cohesive and impactful buying experience. Consumers are getting tired of chasing the four fashion seasons. KOPO merchandise mix is a collection of core wardrobe items to layer on and off throughout the year.
Consumers Research brands and seek brands that resonate and reflect their own beliefs and lifestyles. Brands are increasingly using story telling as a means to communicate their Brand story and DNA. This means they are employing a range of tools from social media, and pop up events to short films. ‘cici’ directed by Karl Langerfield is a promo short film communicating the story of the origins of the iconic Chanel jacket. Consumers are bombarded messaging from brands competing for their attention and money. To be impactful, memorable and keep consumer interest brands need to create emotional connections with consumers. Consumers have become experts at spotting authenticity and they want to know about Brand story. External creative agencies such as Cult LDN and I am beyond are used to execute projects to this effect.
DISCOVERY OVER SALES R E TA I L E X P E R I E N C E
KOPO responds to these trends by creating an environment which faciliates and encourages the discovery of brands and authentic sharing and appreciation. It delivers strategic bespoke discovery programmes for clients and avoids being over comercial. KOPO authentically engages with consumers beyond sales.
Pop ups seem to be here to stay. They have become a normal part of the retail and marketing mix. Brands are participating in pop ups as a tool for marketing. Established brands partake in pop ups to increase their brand presence. What used to be a solution for brands without a physical presence has become a valuable tool fulfilling more strategic functions. Brands can partake in pop ups in order to add layers of experience that their brick and mortar stores dont provide. Part of the appeal of a pop up is the element of transformation when a brand is able to creatively utilise a space. London fashion week will utilise a soho car park for SS 2016 show schedule. The same car park was used to host the Internatioal fashion showcase exhibition. ‘The Apartment’ which is essentially a marketing event hosting bloggers during fashion week does so in a heavily merchandised rented residential property.
THE SHIFT FROM MESSAGING (Advertising) TO EXPERIENCE
Consumers want personal, experiential retail experiences. Premium and luxury customers particularly want to experience the brands they are buying from. ‘Messaging is only part of the brand story,’ said at LS:N Global’s Retail Futures Forum. ‘The entire brand narrative needs to be consistently implemented in store, on mobile applications, on desktops, through e-commerce sites, through social media, in content…’ Consumers gravitate to brands that feel authentic and have ‘heart’ because their experience with that brand is consistent and believable. Luxury consumers in particular place high priority on experiences. They don’t buy things to have more things; they want the experience to go along with it.
ACCESS TO INFORMATION
The Internet has changed the way we engage with brands. Consumers can look for information about a brand with very little effort. Studies show that most consumers will research before making a purchase. With increased platforms and communication channels to engage with brands and each other about our experiences with them, consumers have more insight. Consumers can follow stylists, designers and brands online and keep up with the lastest from industry without having to wait for fashion journalists edits. Consumer generated content is becoming allot of consumers most trusted source of information. For brands, this means a change from traditional marketing methods such as advertising to getting involved in dialogues with consumers. It has become less about the brand message and more about whose consumers are telling the best stories about them.
LIFESTYLE ORIETATED RETAIL Retailers are opening hybrid flagships that fuse retail with with leisure. The term retailtainment has been used to describe the merge. There are In store gallery spaces and other hobby orientated elements being infused into retail to cater for cultured consumers. Concept stores often use lifestyle themes and introduce lifestyle product into the product mix to enhance the retail environment and experience.
Consumers seek lifestyle experience and retailers are using this to extend the brand lifestyle message.
Theconcept KOPO is an Independent agency offering a platform for Fashion and lifestyle brands to showcase and sell to retailers and consumers through a concept showroom. The Agency provides representation and Intermediary services across retail, PR, and marketing. KOPO represents premium to luxury brands who’s market are contemporary women aged 45+ (consumer profiles on page 11.) It Markets both directly to this end wearer/user and to independant retailers and resellers targetting this market. KOPO Mainly but not solely sells via its temporary concept showroom which pops up 4 times a year for two week periods but can also represent brands at trade shows, press days, and launch events.
1 .DIS CO V ERY
KOPO is about being able to discover brands and product. The KOPO approach is discovery over sales, sharing the passion it has for the brands that it represents and communicating their brand stories to consumers. KOPO goes beyond retailing and encourages investment in the brands which. KOPO executes marketing and brand building as part of the value of retailing in the showroom selling brand stories, ideas and designs in order to build reputation and achieve longer term sales for the brand. Brands are able to build elements of a promotional campaign into the retail experience within an event and communicate their brand stories directly to consumers. KOPO facilitates this by delivering strategic discovery programmes specifically tailored to the clients requirements. Working closely with the brands to identify their needs and create experiences which then converge into increased brand awareness, engagement and loyalty. In so doing building its own reputation as an agency and showroom platform.
Alongside Fashion the KOPO product mix offers home goods, art, and other lifestyle merchandise. KOPO provides a powerful tool for building brand awareness, reaching new audiences, growing existing markets, and creating memorable and experiential retail moments.
Brands can use the platform as a showroom in a commercial setting where consumers are buying, and benefit from inhabiting the space with existing customers of other fashion brands and lifestyle merchandise and/or services which can help establish brand position. Clients are able to test ideas for their permanent locations, and online-only sellers can see how consumers respond to a brickand-mortar showroom.
The showroom is designed to execute the 3 corner stones of the KOPO brand concept detailed here:
2 .PERS O NA L
KOPO builds on the discovery over sales approach by putting emphasis on engagement. Creating opportunity for attendees to create personal experiences which strengthens the discovery of the brands and products represented in the KOPO showroom. KOPO clients receive a bespoke and personal service with a very personal client-agency relationship with regular communication, and feedback to the shopper or more a fashion editor may receive from a brand rep at a presentation and updates. The showroom experience is hands on and pro active. Associates are attentive and guide the experience one on one and face to face. Clients can expect high customer service levels.
3.EXP ERIENT IAL
The emphasis on discovery serves to create engagement. When customers step into KOPO they are immersed into an experience which they would not compare to a normal shop. The store is designed to make them appreciate their surroundings and within it the product on a deeper more emotional level then that which they expect from KOPO competitor traditional retail and concept stores. Marketers have paid increased respect to the power of live experiences as marketing tools. Entertainment aspect. KOPO offers something that exceeds customers expectations. Aging baby boomers are spending money on experiences and travel instead of buying product. The product they are buying are brands that appeal to their lifestyles which are also different to the 45+ woman of past generations. Millennials are seeking more urban, boutique-style shopping experiences, which means brands will do better trying to reach both younger and older consumers at well-placed, well-curated temporary stores and events. The product mix responds to this and is presented in an appealing personal and experiential way. The shift from advertising to marketing means a change in the role of the store. Rather than seeing a store as a space for selling, the best fashion brands view them as part of the experience. ‘Experience is everything that gives a product a context...Products on their own aren’t that memorable.’ LSN:Global
Ethics and social responsibility
Mission Statement Our mission is to inspire recognition and investment in the brands we represent. To create compelling discovery experiences and narrate brand stories that we help grow into best selling cult classics.
Vision Statement The KOPO vision is to be an agency synonymous with good taste, creative execution and an inspiring and innovative approach to sales and marketing. To be a leading platform for representing Brands who want to grow their business and that the exposure that brands gain from being a part of KOPO has a significant and measurable effect on the growth of their business. That consumers discover fashion and lifestyle brands that they will be passionate about. That anyone who engages with the KOPO pop up will leave the event with memories and merchandise they will be passionate about and experiences they will want to share. So that it is an event considered an unmissable part of the fashion calendar and retail destination.
KOPO is conscious of the struggles in Fashion industry when It comes to social injustice and exploitation in supply chains. As a company that prides its self on operational excellence and responsibility we have taken the following steps to ensure that we donâ€™t add to the problems of fast fashion. Firstly, as we are curators and retailers, we want to bring you some of the most stylish brands and we insist that the brands we work with strive towards transparency in production. All the brands we work with have at least one strong point in ethical production whether it be environmentally, sustainability, local production, up-cycling, fair trade sourcing or using organic materials; and they are further striving to improve on these. We donâ€™t ever want to exclude brands from working with us unless in extreme circumstances where we believe that conscious exploitation is taking place. Rather, we want to encourage our brands to look at improving the strength of their brand by being more socially responsible in all aspects of their operations. Hence by associations we want to improve our collective impact in fashion industries. Secondly, we believe that the best place to start from in terms of being responsible is within our own operations. Echoing our stance on transparency KOPO participates in schemes that will further open up our brands to ways of improving their own transparency. Events such as Brands of Britannia, Fashion Revolution Day and Traid workshops are key to what we are trying to achieve here at KOPO. KOPO will always promote diversity and transparency in all our structures from our staff to the brands we work with.
Consumer profile INTRODUCTION AND METHOD This consumer profile is the result of a multi-variable segmentation approach. It incorporates psycho-graphics, demographics and geographics. Existing frameworks which are used within industry i have been combined with primary research, interweaving to identify and develop a ‘portfolio’ of relevant segmentation variables in order to create pen portraits of 3 segmented markets in order for the brand to be more personal by examining variables within the potential market. A more affluent consumer aged 45+ is the core KOPO target market. This demographic is growing in size and statistics show it will continue to do so. Analysis of the market reveals they are real drivers of the luxury market. Popular culture and notoriously fashion under represents this age group and is obsessed with youth. The frequency and tone of recent media suggest that the demographic is currently ‘on trend’, (older models apearing in campaign images for major luxury brand campaigns). As our society changes the way women age and their attitudes to fashion does so also. Today, it is the first baby boomers, born between the mid-1940s and the mid-1950s, and in 10 to 15 years’ time it will be later boomers – known widely as Generation Jones (born between 1954 and 1965).
This goes to show that age is not a definitive way to determine consumer preferences behaviour or taste. In defining the target market statistical information has been used to form an overview of the social environment, Life cycle, shopping group classifications. Although age has been the central frame of reference in describing the target market the emphasis serves only to provide context it is necessary to note at this point that the core of the discussion of age actually hinges on lack of ageless ness of modern day ageing. KOPO is not about catering to an older woman but about curating collections which compliment her lifestyle, preferences attitude and body, presented and experienced in a way which is relevant to her. There is also a pen portrait for the Buyers who are key to the KOPO concept. Such as the national retail federations shopping groups (National Retail Merchants Association, Marketing-sales Promotion-Advertising Plan book (New York:NRMA, 1986) pp.6-7, The VALS Framework, NRS Social grades, Cross Cultural Consumer Characterisation (4 c’s) developed by Young and Rubican ad agency.
Women are living longer and retiring later or not at all. They are healthier and they simply don’t look, act or feel old. Research suggests his age group are looking for experience and excitement and their increasing spending power and prominence means that brands should focus on them. ‘Members of the Flat Age Society are technology-savvy, love luxury’ reports LSN:Global They are responsible for 45% of all luxury consumption worldwide Observational research into the markets consumer behaviour highlighted the target market use shopping trips as a social activity and high numbers of mother and daughters were observed and interviewed. Research has shown that generation x and Jones have the most in common then any other age demographic. To reflect this one of the consumer market segments is a younger woman the ‘daughter’.
KOPO Brand Identity Design
The look of the brand is strong with monumental shapes and luxurious and natural textures giving the look depth and a luxury feel that makes you want to touch it. Colours that dont detract from product but that create a strong backdrop. Texture creates interest rather then brash colours. Strong graphical shapes catch the eye and create interest. Looks classy, clean, but interesting. Colours that denote the luxury/ premium style.
Name Kopo means ‘to discover’ or ‘to seek’ in ‘Bulu’ one of many languages spoken in Cameroun . It is a strong name which It looks visually striking and sounds strong, and is easy to spell and remember. Particularly when seen.
K Brand Persona
KOPO believes that guided discovery triumphs over persuasion. It does however believe in strategy in order to achieve optimum guiding and in turn brand growth for clients.
-Passion KOPO is an authentic brand who will only work with clients it can genuinly get behind. Passion for the brands we affiliate ourselves with and the content we bring to our platforms is imperitive.
KOPO delivers thoughtful curation of considered Design. Our product and fashion are modern and classic, effortless but impactful. KOPO advocates Playful exploration of the co existence of Strong and soft. Through attention to detail, texture, materials and shapes. -Showroom KOPO showrooms are designed to look Clean, strong, modern, impactful, inviting and engaging. The space is designed to encourage the slow consumption of merchandise and facilitate discovery.
-Comraderie Due to the passion and respect we hold for our clients and their work; we value the client agency relationship formed in understanding client needs and the brand stories. -Quality KOPO values the craftsmanship and quality of good design and production. -Experience We believe life is all about experience. We value the experience of our consumers and their point of view and we want to add to it by creating a showroom which adds to this body of experience.
No pay points. The concept is not to get customers to the tills but to encourage engagement with product and brands.
The KOPO tone of voice is professional, informative, and passionate. The communication across all platforms is aligned with the target market. Our clients and customers are creative, are fun loving proffesionals who care about the brands they associate themselves with and KOPO does the same.
KOPO behaves as hosts and each customer/attendee is a valued guest and friend of the brand. Portrays the same passion for brand and communication you would expect at a press event or brand/product launch with the aim of brand building for both KOPO and the brands it retails. We achieve this by being proactive in our approach to consumers which enables us to engage them instead of allowing a passive and removed experience to occur.
Gap in the Market & Brand position Radial chart plotting performance and attributes of competitor market sectors In house (directly with brand)
Variety 5 4.5 4 Staff Knowledge
3 2.5 2 1.5 1 0.5 0
Access/engagement with end wearer
accesible to retailers (wholesale)
Analysis of this radial chart shows that the strengths of B2B services tend to be the weaknesses of the B2C sector and vice versa. Retail platforms focus on making sales by offering variety and customer service in nice retail environmets. Business to Business sales are gained by persuading the customer that the brand and its collections is one to invest in. The focus is less on individual product and more on the bigger picture of the brand. What this creates is a Gap in the market for a platform and service which retains the staff knowledge, personal service and Engagement factors.
The functions which get across the ‘brand’ as well as product. Core traits and means of obtaining sales for B2B (tradeshows, showrooms, press days, presentations, etc). By the time merchandise reaches the end wearer it is too removed from the Brand. Customers mainly rely on the decoding information about the brand from labelling and branding. The consumer often needs to engage directly with the brand (brands website or store if they have one) to get a better idea about brands but the motivation to do so needs to be sparked and often in retail environments this does not happen. One
reason being because as the Radial chart shows, these are also the environments where there is variety and these brands are competing with other brands for attention. The same can be said about tradeshows. There is a need for retail situations which actively narrates brand stories on a more personal and engaging level directly to consumers. On the flipside, showrooms tend to lack the ‘Retail environment’ factor and are usually only accessible to industry. This may be less important when buying as a reseller however there are benefits to seeing a product in a retail environment and amongst a merchandise mix curated for a target market.
The focus of fashion press days and similar events are to promote the product, however the ultimate goal or end objective is to sell. However by shifting the focus away from the latter there is room for a more authentic relationship to blossom between person and product.
the enthusiasm for fashion. The collections are ‘the thing’ At London fashion weekend, although the enthusiasm for shopping fashion remains and with it, some remains of the ‘fashion’ but the shopping takes over. That commercial aspect which seems a less important element of showing at Lfw and has a huge impact on customer perception.of both.
fashion shows Tradeshows There is an air of creativity during these events that is lacking from Retail environments. At LFW Whether perceived or genuine there is a feel of authenticity in
way. Department stores such as selfridges use a commercial space and inject residential elements. This is commonly used in luxury retail stores where there are personal shopper stylist services. Consumer is often taken to a separate more comfortable intimate and homely retail environment. Changes the positioning the retail experience.
Having looked at The LFW apartment in great depth, it has encompassed this personal shopping lounge appeal using residential space in a commercial
illustrating Markets and KOPO Brand position within them B2B/Industry services Consumer focussed
Fall under areas that may involve Agency services
PREMIERE VISION V&A
INDEPENDENT PRESS DAYS BRAND/ PRODUCT LAUNCH
NOT JUST A LABEL
THE CLOTHES SHOW
LONDON FASHION WEEKEND
INTERNATIONAL FASHION SHOWCASE
MULTI BRAND BOUTIQUES
OWN BRAND RETAIL
TRADITIONAL MULTI BRAND RETAIL
NET A PORTER LFW SELFRIDGES GRADUATE FASHION
Competitor analysis Brand & Description
Online Retailers specialising in emerging brands Not just a label A sales platform/ virtual showroom & community connecting independent designers to consumers (represents 18000 in over 100 countries)
Discovering and supporting pioneers in Contemporary fashion -Premium Retail platform
Consumers looking for new labels. Industry designers looking for a platform to showcase and retail
represents a huge amount of designer. online only, keepinng overheads low, small team of only 11. Sales have doubled yearly since launch
Small team dealing with huge client base limits the involvement and control, and impact.
Although they say they represent the brands and brand themselves as a platform for representing brands and the content on the site aligns itself with this, The scale of the business cant deliver the kind of bespoke attention and promotion.
YBD Dedicated retail platform for young British designers. 37 young designers (young= ormative years of brand) at any age
Shop the new generation, Retail platfform specialising in new British designers -Premium/luxury retail
consumers wanting to discover, support and purchase British designers
Product is very specific.
Such a specific and strong USP means a relatively small share of the market.
Sales are at the forefront but the brand story is still very important to the concept. YBD is Online and has very specific and different target market.
PR Sales events, retail, consultancy, Business modal is a mix between a multi brand showroom, a logistics and distributon centre and a multi service marketing company.
From emerging labels to established premium and luxury International brands.
One of the most well known fashion agencies in London.
May be intimidating and expensive for smaller brands
stronger focus on logistics and organizational structures.
ATShowroom Fashion sales and marketing agencies
Retail and communications planning, ecommerce and consultancy, as well as help getting Investment funding such as compiling documentation
Sells to Independent boutiques, fashion chain stores, department stores and online retail.
Established for over ten years, has international showrooms.
Polly King and Co Strategic fashion sales and communications company . Operate showrooms in London< New York, Paris and LA
In house bespoke representation.Brand building, comprehensive service
Brands with International selling potential
allot of well known brands with allot of buzz as clients. An established Fashion industry professional as founder
No specific target markets. thus no strong USP.
There focus is on dealing with international brands.
leasing space for retail and curating the
Short lease retail platform for
Brand controls how they use the retail platform. No commision. Around 50 curated fashion, art and lifestyle brands. Has an air of innovation. Simple business modal
Grouping pop ups to create a pop up community which is evolving keeps consumers coming back.
Lower price points. Controlled by the brand. No Agency support of any kind.
Good entry route to market for Young British brands
Showroom/Agencies Rainbowave Sales and communications agency
Spread across a number of markets High end womanswear & menswear, contemporary womans wear and menswear and accesories London selling dates are in september only.
A diverse range.
They only reveal two of their clients on their website and have very low social media nnumbers for an agency founded in 1991
Multi Brand Pop ups Box Park Community of brands based in a â€˜pop-up mallâ€™ made up of shipping contain ers. 1 months 1K-12months at 20K Short term leasing
Competitive edge • • • • •
KOPO Provides a retail platform alogside Sales representation and agency services so we are in touch with the front line Inclusive of public unlike showrooms that only service trade. Curated for the 45+ Market There is a gap in the market for an agency curating merchandise for this target market. The Majority of Competitors targetting this demographic will profile them as late majority adopters and play it safe in their curation. KOPO is currating a product mix of merchandise which is both fashion forward and on-trend whilst in keeping with their lifestyle consumer research shows that the 45+ woman is as interested in experiences and discovering new things and is not stuck in her ways and unwilling to change. She is as fashion forward and on trend as generation X and Y and millenial women and has more disposable income. LSN:Global
Strengths • • • • • • • • • • •
Short lead time, able to make adjustments due to the minimal investment in stock Stock turn, consumers can expect and receive new product at each event No range fatigue as KOPO is curated Pop-up Urgency to buy it whilst you can No stock carry over A selling duration of two weeks allows consumers to return after thinking about a product purchase unlike some shorter pop ups or showrooms where customers may avoid making pressured sales Extremely personal approach clear target market and a modern approach to curating to a consumer which has spending power Offers allot of Value to clients (see p19) Once a sales order has been made continued sales from that buyer become minimal work and will continue to generate profit The showroom platform is an entry point to gain exposure and view the merchandise but KOPO canoperate outside of the showroom also
• • • • • •
Threats • • •
Opportunities • • • •
The lack of range depth lower margins as there is no initial investment in stock Less control of stock management as relient on stockists Retailers may be concerned with the ability for the designers and brands to deliver on time without hitches. Curating the collections shown to buyers limits the exposusre and selling potential of the buyer. Lack of links with manufacturing end of the business may be a dissadvantage for designers who want to develop new networks.
• • •
Can avoid undesirable trading seasons i.e.sales No limits to its growth potential Can offer a wide variety of services due to the nature and set up of the Industry and business Opportunity to develop excellent relationships with clients due to small size of agency
Difficult to respond quickly (restocking) consumers may become frustrated Sales and distribution within fashion is a close knit industry that may be resistent to competition The risk of working with clients that are unable to fulfil orders even if KOPO generates orders.
All of the identified weakness and threats will be adressed in this proposal and measures taken to minimise the risks.
Services KOPO offers bespoke services to its clients. Personalised to their needs, budgets and requirements. It finds creative and innovative ways to tell the narrative of your brand story. PR & BRAND BUILDING specifically target and introduce clients to relevant media and opinion formers and consult on visual representation including look books and campaigns. Development of PR Strategy, Editorial placement. KOPO runs a consistent and continuous press service and additionally works across bespoke customer events as and when they occur. This may include execution of sample sales, press days, presentations.
SHOWROOM REPRESENTATION & SALES Sales â€“ Consultancy & retail placement strategy, Wholesale agency representation and Trade show representation. KOPO represents Fashion and Lifestyle brands who want to showcase and/or sell there work and grow their brands. At our temporary reoccuring showroom we deliver a bespoke discovery program to best communicate your brand story and create an immersive brand experience whilst reaching quality customers.
Those taking orders for made to order pieces pay a one off fee for inclusion in the discovery program and benefit from the same level of representation as agency continued clients. The KOPO showroom is open to the public. This allows our clients to get valuable feedback from attendents about their merchandise and grow their customer database.
We can also ensure that it sits within a wider, integrated marketing strategy and work to maximize brand exposure before, during and after the concept showroom. Brands and designers who sell made to order ready to wear pieces pay a one off fee for showing with KOPO.
Sho w c ase 1 O ff p ie c e s (e .g Ar t , st a t emen t fu r ni t ure)
No F e e
Sho w c ase Mad e t o o rde r
Showroom space Client will participate in the showroom and have a space at the showroom
showroom Agent services
A tailered discovery programme created to communicate the clients brand stories
B2C Sales during the showroom.
Represent clients. Setting up buyers appointment, generating leads, taking sales orders
PR, communication, marketing services, consultancy
continued Agent representation (PR)
Co re/ t emop r ar y (sh o w o n l y)
12% commis ion
P er m a nent and o n goi ng
Value SALES GROWTH VALUABLE FEEDBACK FROM BUYERS AND END WEARER • •
Feedback from end user Benefits of being accessible to both public and buyers.
value. MARKET PENETRATION • •
MARKETING PROMOTION •
• • • • •
More impact and more beneficial as a marketing platform and in turn more financially rewarding as a sales platform Increased visability Improve brand awareness Brand DNA being communicated Some coverage from renowned Bloggers, Media and invited press Exposes brands to buyers with buying power at strategic times within buying seasons) and locations chosen to maximise on the International buyers in the vicinity. Dedicated service promoting the brand Effective demonstration of how it can facilitate the above points successfully will get it the reputation it aspires to have and converge into monetary
lifestyle merchandise which strengthens and positions the brand within the lifestyle of their consumers. • A great entry to market for brands who want to be involved with LFW and other Industry event which are not within the brands budget and/ or reputation. • KOPO establishes and builds buyer relationships with a professional but relaxed setting so the acquisition and sales cycle time is significantly reduced. • Improve the reputation of the brand as an authentic brand willing to invest time and into communicating with consumers one on one • The value in content for press gives added incentive to feature KOPO and it’s brands • The network they gain from being involved with the cohort of bloggers and the melting pot of brads which can converge to more followers and increased numbers • Targeted copy on a separate tab with a request for a info pack/media pack Examples of what to include in copy would include the total reach of bloggers readership etc. •A media/info pack
Grow the reach of the marketing for the brand (penetration) Reach end user via a showroom and in an environment which is designed to be talked about and shared. (Increased word of mouth etc.) The credentials that brands get from piggy backing the event and the involvement
BENEFIT FROM THE CURATED KOPO CONCEPT •
• • •
With the events and proximity to the events that it is and being a part of an initiative and event with The ease of participation The curated event Alongside brands targeting the same consumer Being sold in a showroom which is a hybrid of concept store, exhibition etc. In a showroom space which has gone to extra lengths to be an experience to shop and be affiliated with an exciting and stunning event Be showcased alongside
For sales made to resellers the minimums are relatively low, suitable for resellers wanting to test new brands or introduce something new with relatively low risk. Makes it accessible to resellers who want to introduce new brands but do not want to make initial large investments in stock. KOPO is able to plan its events to coincide with holiday shopping, or to coincide with big events like London Fashion week. KOPO facilitates brands being where they want to be, when they want to be there. And being a pop up it can choose its locations to maximise on the desired markets and plan innovative exciting creative events in interesting venues and settings. KOPO Pop-ups give online brands a physical presence For sales made to resellers the minimums are relatively low, suitable for resellers wanting to test new brands or introduce something new with relatively low risk. Makes it accessible to resellers who want to introduce new brands but do not want to make initial large investments in stock.
Merchandise planning FA SHIO N
A CCE SO R I E S B A GS S CA R V ES GLO V ES
HOME & LIFEST Y LE
consumers seek lifestyle and cultural experiences from retail.
FOOD & BEVERAGE
RANGE PLAN FASHION The merchandise mix is curated for our Target markets outlined. With this in mind the merchandise fits into their lifestyle. This means for instance that whilst maintaining a youthful energy and style footwear for instance may include a higher ratio of lover heels, flats, and chunky heels to appeal to an older customer who still wants to have amazing contemporary beautiful shoes. The Fashion will include designers which design with a more mature body in mind. Collections which cover arms for instance which research shows is an area that women will tend to cover as they get older.
HOME AND LIFESTYLE Having art in the product mix that reinforces the brand position as a curator of carefuly curated goods and as offering a mix which is more considered and cuture driven. Strengthens the brand identity. And as a place to discover. Including plants and tea is a way of offering product which would appeal to the target markets lifestylee. On site at the event itself Non seasonal range FASHION The product curation Clothes that can be layered Suitable for a travelling International
PLEASE REFER TO BRAND BOOK
BRAND LIST FA S H IO N 7 0 %
H OME & LIFEST Y LE 3O %
MADE TO ORDER
Food and beverage
Jewelery hats, scarves gloves Bags 21
Fashion & Lifestyle
eudo choi aleksander siradekian Nadine goepfert Przhonskaya Niza Haug williams joan stoker kelly love Georgia Hardinge clayopera Charlotte mei Haider Ackermann
Vivetta - Moda Operandi Charles Warren NY dion lee freya dalsjo novis nyc bianca spender strateascarlucci henrikvibskov cynthia mak chromat jovana markovic
eren tuneli kozatasarimyarismasi mirja pitkaart polathompson rasa studio isa arfen bora aksu delposzo simone rocha mina perhonen
Pricing Furnishings Apparel Accesories Footwear Art Ceramics Plant Food and beverage PRICE in £
0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 480 500 520 540 560 580 600 620 640 660 680 700 720 740
Pricing of Agency services & profitability KOPO profits will come from the clients it represents. One from the services side of the business. Where it will charge a fee for representation. The second as a showroom platform. KOPO will develop unique and personal relationships with the brands. who will set their own Retail prices. SALE OR RETURN at 30% consignment for showcasing brands -A flat fee for made to order fees will be negotiated -A fee and commision on all orders placed via the showroom for wholesale. Fee will be per event *curated lines with a small quantity of merchandise wlll pay fee’s based on the size of the inclusion. For instance, where there are only 5 items which have been chosen from that designer which will sit amongst other desiners in the same catergory no fee will be charged. This may mean that higher fee will be charged. When selling at wholesale prices KOPO will The introduces the brand to her/his new and existing buyers and, in case everything goes ok, passes all orders, contracts and shipping details to the designer. Distributors are the ones that usually buy designer’s products but it is true: showrooms can also go for that through a business partnerships (i.e. joint venture). Showroom sales will be based on the volume of sales obtained.
Projected sale volumes based on product classification
Product not otherwise specified
Lower priced items that are negligable and dont require much thought and persuasion in purchase. Impulse buy items such as candles, plants, and refreshments. Particularily those coinciding with holidays such as christmas. when people will be shopping for gifts.
Ready to wear Core collection
The sellers, commercial pieces making up the largest portion of the Product Mix and of sales projected to come from this catergory. Merchandise that is picked because it is projected to sell.Classic pieces that fit into the consumer lifestyles and wardrobes and are relativey low risk in terms of style. Contemporary urban classics.
RTW statement pieces
Merchandise that is projected to sell in smaller quantities due to being more bolder design. Stand out pieces that fall outside of capsule wardrobe but are beautiful or that are likely to be worn in less frequency.
Luxury and Made to order
Pieces and product that may not neccesarily sell in high quantities due to high price points (Luxury) and/ or higher commitment and effort required from customer if an order must be placed which doesnt conclude in instant product ownership. but give consumers product to dream about and which has more personal value and emotional connection to the merchandise. Adds an aspirational and personal value to the mix at no risk and cost to KOPO. Add an authentic and artisan element. aspirational and may sell to more affluent consumers.
% of Profitability based on product/client classiication
Merchandise that is projected to sell in smaller quantities, Works of art, specialist furnishings, Collectors pieces, vintage items.
Rational: Rational: Initial investment in stock and higher volumes of sales will mean higher margins of this merchandise.
High sales volumes projected @ 15% of sales price amounting to 70% Income and 40% of profits + the fees for these amounting to 10%
medium-low sales volumes projected @ 15% of sales price amounting to 30% Income and 10% of profits + the fees for these amounting
40 30 20 10
Rational: Based on fees for
a showcasing brand
Rational: Based on a consignment price of 30%
The discovery element of KOPO and its brand position as introducing fresh new brands that are ‘about to’ be big news and the ‘best kept secret’ as well as a ‘catch them whilst you can’ atmosphere requires there to be brands that rotate. Brands that last for three seasons. (the length of time that retail buyers tend to test a new collection/brand). These temporary brands will help create an excitement about upcoming pop ups and the merchandise that will be shown. Keeps KOPOs position as ‘snynonymous with exciting new product’ and fashion credibility as a sourcer of new exciting product. Authenticity to the curation of the event. -generates interest -new emerging designers -Keeps the KOPO brand fresh. The more brands in the KOPO client list the more market penetration can be reached by sharing new brand connections
Having tested the market for brands. KOPO will be in a position to identtify Brands which sell well, and get good response from customers. Brands will emerge as succesful and KOPO will be able to establish consistant portfolio of brands to represent. KOPO would have developed personal relationships both with the brands and with the buyers to whom they have introduced the brand to and will be best placed to nurture them whilst they grow . The discovery element will remain as new consumers are introduced as the brands gain market penetration and recognisability. For regular atendents there will be a shift to finding out about new collections and processes etc. Data from the buyers App will help ensure that Associates know where the buyers are on their discovery. KOPO is invested in the brands it works with and their long term sucess.
S E L L I N G DAT E S
PRESS WEEKS AW
Selling dates for the concept showroom are strategically planned to coincide with buying seasons and fashion industry key dates and significant retail selling periods.
SHOWROOM TRADE SHOWS FASHION SHOWS
Fe b u a r y 1 5 t h - M a r c h 1 5 t h
Themid seasonal weather works for both business to business markets and end weaer. It coincides with AW LFW.
SEPT OCT G
The december event will be more consumer focussed. The financialprojections will reflect smaller numers of wholesale income. Merchandise mix will be more geared towards Gifting and party wear.
the end of the summer sales, consumers are investing in their winter wardrobes and retail is refreshing its stock.
key seasonal segment with the highest Main and ongest event. Its the highest frequency of sales in retail ‘fashion buying and merchandising management’ pSS LFW
August 1st- October 1st
The pre holiday season Shift from tailored pieces to more holiday and travel friendly pieces. More pieces for layering.
Organization chart OWNER/C.E.O 16K PA -Manages client accounts -Develops and maintains relationships with clients -Researches brands and buyers, generates leads and builds relationships with industry influencers and key contacts -Responsible for curating of Showroom and client selection taking advice from the Fashion Director and showroom manager -Responsible for strategic planning of discover programmes
FASHION DIRECTOR 18K PA -Advises on Trends and works closely with the C.E.O to piece together range plan. -Offers analysis on collections -Sales -Plan the marketing and promotion of the business -Directs Visual merchandising
PRESS & COMMUNICATIONS EXECUTIVE 18K PA -Handles the promotional aspects -Contacts to invite press and build a database of press and buyers -Executes the Intergrated Marketing -Responsible for keeping the online components of KOPO operational and effective. -Create written content
SHOWROOM MANAGER 18k -Retail management --Responsible for arranging Showroom -Responsible for the stock management of merchandise -Key contact for Wholesale sales -Responsible for making arrangements for Showroom execution working closely with CEO, contractors to execute the Spatial elements of the Showroom
SHOWROOM INTERN -B2C Sales at the showroom -Assist in setting up of the event -Running errand to support the showroom manager ORGANIZATIONAL STRUCTURE The KOPO organisational chart shows the size of the agency in terms of the team which is as efficient and cost effective as possible. KOPO will begin as a small enterprise. The C.E.O of the brand will have a hand in all areas of the business and be involved at all levels of the business. The C.E.O will take a ÂŁ16,000 and draw on Profits that are not reinvested. Working very closely with all other divisions of the business. This will ensure that all areas of the Brand are working in unison and that the Brand vision is strong from the outset. The Showroom intern will be unpaid with travel expenses covered. There will be a need to hire freelance contractors for graphic design, events services and a web designer in order to achieve some of the necessary objectives. This is reflected in the cash flow chart as Indirect staffing costs and is the main expense.
10.3 Cashflow forecast
Financials Cash Flow Chart Mo n th A
Mo n th n am e
Mo n ey in (£) Start up investment/capital Fees (temporary) Client Monthly retainer B
25% comission from (Tier 2) on RRP %12 commision from sales management 20% commision from 1 off pieces (tier 1) Inventory sales To tal m o n ey in (£) Mo n ey o u t (£)
2,400.00 3,672.00 400.00
2,400.00 800.00 2,400.00
2,400.00 2,400.00 2,400.00
2,400.00 2,400.00 2,400.00
2,400.00 0.00 500.00
2,400.00 2,400.00 2,400.00 500.00
20,000.00 12,000.00 26,400.00
3,200.00 95,844.00 0.00
Repayments Renting Premises Inventory digital componants leasehold improvements (VM) travel expenses direct labour Marketing postal and stationary D licenses and permits Accounting and legal Indirect labour networking event Advertising
300.00 4,000.00 200.00 100.00
3,500.00 300.00 100.00
500.00 200.00 500.00 400.00 300.00 700.00 600.00
telephone/communications/utility Meals and entertaining Furniture/equipment/fitting To tal m o n ey o u t (£) Balance (£) Opening balance
50.00 1,000.00 8,850.00 11,150.00 0.00
8,363.00 1,109.00 11,150.00
8,063.00 2,209.00 12,259.00
4,563.00 -3,763.00 14,468.00
5,063.00 -4,263.00 10,705.00
8,263.00 3,937.00 6,442.00
5,063.00 -2,663.00 10,379.00
9,730.00 1,470.00 7,716.00
6,230.00 -3,330.00 9,186.00
6,630.00 1,070.00 5,856.00
9,530.00 -330.00 6,926.00
6,030.00 -1,530.00 6,596.00
6,030.00 -1,630.00 5,066.00
17,500.00 1,600.00 5,200.00 200.00 100.00 60,798.00 500.00 200.00 500.00 400.00 900.00 700.00 1,200.00 0.00 960.00 650.00 1,000.00 92,408.00 3,436.00
Row 5 shows fees from clients using KOPO as a platform to retail. These clients are charged a fee for services provided to prticipants who are charged a fee for services provided for participants who are selling personalised made to order oods whom detailed on page 20. They pay no commision on sales or orders of any kind. The cash flow reflects income from just 3 of these clients which is a very modest underestimation of the potential income from this income stream. Row 6 Client monthly retainer respresents income from brands which are consistent clients of the agency and receive continuedrepresentation. It is based on the first client coming on board in July after the first concept showroom. Adding two more in October and two more in febuary. Closing the first year with 5 clients on agency books. This growth rate is purposely slow in order to be able to grow consistently but be in full control and over perform whilst growing repution as an agency. Row 7 Shows income from sales made at the showroom to customer (B2C) at RRP prices on behalf of clients. KOPO charges 20% commision for these types of sales. the cash flow chart is based on commision from sales of a causious and attainable £1000 pd or £12,000 across the duration of one showroom selling period. As the clients become more established and the range depth improves it will become a more commercial and more proffitable revenue strea. Row 8 This income comes from a 12% commision on sales. It is based on generating sales rounded down to £100,000 in the first year for clients. in sales orders. this amount assumes that only 85% of sales orders are fulfilled. The cash flow shows this income occuring during the Showroom selling dates. 7 months into the cash flow, after 4 showrooms (January) The income begins to start coming in between selling dates in small amounts Projecting that there wil be re orders. which will grow as the agency and its clients gain reputaion, success and business. Row 9 20% commmision on participants who pay no fee for showrom platform. Based on sales of £2,000 across the two week selling period.
THE CONCEPT SHOWROOM Location
Areas which are frequented by affluent markets in creative areas. Within 25 minutes of areas like Tottenham court where allot of creative businessâ€™ HQ. The Images below are of the Space used in the rental costs of the cash flow above. The cost is ...... to rent the basement of CELESTINE ELEVEN. An alternative, luxury concept store offering a means to live well within all spheres: aesthetically, intellectually and spiritually. Based in the heart of trendy Shoreditch 2 minutes from Shoreditch overground train station. Celestine Eleven is a 2 year old luxury fashion boutique/holistic centre that offers books, womenâ€™s clothing, wellness products and treatments. This is right for KOPO because the brand DNA and target market are in line with KOPO. The location gets allot of the right footfall but being situated in the basement of an open space with a cafe is private and intimate enough to achieve the right vibe for the showroom.
DECOMPRESSION ZONE Te a B a r R e c e p t i o n Plants In store Gallery Art installations/exhibits
In the decompression area will be a tea bar where customers are able to taste, order and purchase tea. The tea serves to make them feel welcome, and get guards down as well as helping to create a more social and pleasurable atmosphere. at ease and slow them down so that they are in the right frame of mind to The curated art exhibition will include art which can be purchased. This will be merchandised in an In store gallery and exhibition space. This is designed to appeal to a cultured consumer and entertainment and thus value to the experience. It also creates an environment consumers are likly to spend time in. Enhancing the shopping experience in a subtle relaxed way. It aids in creating positive associations and memories of the event. The tea on sale will be design led with interesting flavours. This also serves to engage the 5 senses from the start of the KOPO experience.
Experiential Retail Visual merhandising • • • • •
Using a fitting service to execute the design vision and ensure a high spec finish which will look professional and executed quickly Creating VM which is temporay in design and easy to install. Finding creative ways to make the space beautiful and experiential. Retail trend forecasts will help inform the design. Where possible Visual merchandise will be achieved in collaboration with Artists, etc who also want to showcase their skill and therefore will work for not a large price. Visual merchandising will centre around core pieces and highlights the details, features or themes of the merchandise being presented in creative and engaging ways. to create strong focal points. Visual merchandising will be designed to display the merchandise as art you can interact with.
Images Opposite page,Clockwise from top right: -Bakoko Installation ‘Living room’ This hanging chandelier made of living plant is experiential and buatiful. A talking piece which creates excitement and a strong focal point. -‘Comme il faut’ , ‘choose, take, keep’ Interactive timeline created by Michel Grant shows how fashion images, and marketing materials can be exhibited in a way which encourages customers to engage with marketing materials. -Sweatshirt draped over Triangle, Cos store Demonstrates how strong and impactful merchandising can be achieved simply and cost effectively. This page from top: Installation in dover street market demonstrate how visual merchandising can be temporary, ea sy to imstall, simple but highly visual and effective.
Discovery Hub Te a B a r R e c e p t i o n Green
KOPO experience. During summer month Marketing opportunity directly between brands and consumers. Seating and touch screen table. making the online and in-store platforms more seamless within the shop. Introduces the customer to the brand without pushing product. build relationships brand loyalty point of sale One2one Customisation consultation Encourage this In The consultation zone where buying decisions are being made. Comfortable seating area which is designed to be used as a social hub for sharing ideas and opinion trends
Associates A key channel for communication will be the KOPO Associates. Research has shown that both generation Jones and millenials want to deal with people. They want to be spoken to and engaged with.
Brands involved with KOPO will display marketing materials such as catalogues, look books etc.
KOPO goes beyond script based engagement which recites information about a brand but facilitates the full discovery of it.
These will be available to browse in a seated area but also there will be informative materials to engage with in experiential ways throughout the store.
Associates will receive high levels of training in order to be extremely knowledgeable about the brands and clients and more importantly to be able to effectively 32
Fa s h i o n S al e s
Dressing Room area Merchandised to resemble a personal shopping lounge in the way that they have residential/boutique hotel feel. Aspirational but familiar enough for posession to be imagined. The customer can picture the item slotting into the life and wardrobe they have and aspire to. Luxurious enough reflect the unique and premium product and brands showing. This VM strategy also helps downplay the commercial element of the retail space. striking a balance between the comfort of hoome and the excitement and experience succesful merchandising can achieve in retail.
The Business end of the space where buyers can fill out sales orders and/or the details which have been filled out bythe buyer on the app whilst engaging with the product.
Digital components a bou t / re g is t e r / con tac t
IN STORE Digital Integration in store continues to grow in Importance, however it needs to be functional, efficient, and most importantly beautiful. Digital for digital sake is not attractive to consumers. KOPO In-store digital aspects enhance the shopping experience in subtle, non distracting ways and at no extra effort to them. They add a non intrusive layer of engagement for those who want to engage with it and bridge the Online and offline channels. â€˘ â€˘
I pads replace pay points to emphasise the hands on, proactive, and personal engagement with consumers. QR Codes are displayed which can be scanned using the in-store I pads or on personal hand-held devices to ease the navigation of the discovery of Online platforms of participating designers and brands.
WEBSITE Made up of different areas to help clarify the KOPO Brand concept and engage with it. Each serving different elements of marketing functions.
Showroom is where customers and interested parties can view brand profiles and get information about upcoming and past events. Includes : -Brand profiles where they can explore look books -A gallery of images from past events and mood boards for upcoming events
Where interested parties can receive information about KOPO services and request info packs and media packs and register and complete an express of interest form. Blog The content on the website is how KOPO aligns itself with its customers. It should be inspiring, interesting, and cover topics that are relevant to the target markets. Included in the blogging area is -Posts covering Events, Art, Film, Literature and cultural debate. This segment of the website will cover Trends, fashion features, Interviews, designer spotlight, Magazine style shoots. Keeping the audience updated about what our designers are doing. -An area compiled of user generated content. I.e. customers images of how they have styled goods in shoots or of there consumers wearing or using pieces they have purchased from KOPO, or KOPO participating brands -Interviews with both Industry professionals and Interviews with normal consumers. As a way to build a community amongst KOPO customers. Links to social media sites
a bou t / re g is t e r / con tac t SERVICES
MARKETING AND PR
Research by WGSN has shown that the FABs are the fastest growing demographic of social media users.
Services part of the website allows them to find out more about the Agency services and where it can market itself.
It is as important for us to be informed about the buyers that come to the Showroom as they are about KOPO and its Brands. New brands particularly like to have some control over the Retailers they who stock them. The App requires the buyer to register and create a profile so that KOPO can be informed. As well as having this information in the KOPO database, KOPO associates are notified by the App on arival at the showroom. Allowing KOPO to give pro active and personal, attentive service.
KOPO Showroom brands all have a Brand Profile. By scanning QR codes or simply using the In-store tablets customers can explore Brands online profiles, and websites. The buyer app allows buyers to view additional information such as minimals and wholesale prices.
Buyers are able scan QR codes and have the added capability of adding the item to a digital sales order which can be edited as they view the collections. They then able to go to the buyers desk to discuss further. Every product which is available to s can scan the QR Code of every product which is available for wholesale.
A barcode is generated to
Scanning QR Codes
Generate sales order -By doing so the item is added to a cart. The buyer is able to access information about the Brand and Items When the discovery experience is complete this compiles a
Show this to a KOPO associate at the Buyers desk to discuss and complete your sales order
DISCOVERY APP THANK YOU MO QUANTITY (12)
SALES ORDER TOTAL ÂŁ 2,600
KOPO merchandise team scout brands and designers using a number of channels to compile a line list for upcoming KOPO events. Brands and designers are also able to approach KOPO for their merchandise to be shown or sold at an upcoming KOPO event. The website will facilitate this initial contact where they will be able to upload images and information about themselves.
KOPO representatives will meet with the designer at their studio, or place of business.
Filtering KOPO will have certain criteria in place to make sure that product offering is in line with the direction that the KOPO show will take. (Concepts, trends, and consumers). which will guide the in the selection process of the curation. The KOPO team will make initial contact to show interest and arrange a meeting. The designers and brands will receive an introduction/information pack outlining the KOPO concept. A follow up will be made to arrange a meeting.
1. Trend analysis, Looking for Brands, artists, planning product mix a
KOPO develops personal relationships with all involved parties. This initial meeting will be used to ascertain the potential clients needs and current position and business performance. Most importantly it will be used to look at the Product up close and personal and discuss. KOPO will be taking into account the quality of the merchandise and the production methods. This is KOPOâ€™s first discovery of the brands it will go on to represent. Finding out about the ethics, creative process, and about the Production and Distribution capabilities of the Brand and establish if the brand is suitable for KOPO. KOPO will also be creating first impressions of what KOPO can do for the brand and will use this meeting to promote its services and value to the potential clients and persuade the brands that they want to be involved with KOPO.
Timeline based on a June Launch
After the meeting KOPO team will review if the Brand is a good fit for the upcoming event or a future event. The team will look at the overall merchandise mix to make sure the brand fits into the larhger picture and merchandise plan.
Based on the first visit. KOPO will write a proposal and draft a contract for the brands and designers who KOPO want. This will be presented to the brands. At a second meeting where both parties can further discuss the contract. It will outline the selected curation. The styles that will feature. It will clarify the distribution capabilities of the brand. It will outline the price and any negotiations and amendments can be hashed out. After the meeting the final contract can be written up , reviewed and signed by both parties.
When contracts have been signed and participation is confirmed KOPO can begin to plan the discovery programme.
PR MARKETING PROMOTION INVITES Contacting press and buyers. Networking. Set up buyers appointments.
The bricks and mortar section of this Brand proposition on page 30-35 detail the Bricks and mortar elements of the showroom i.e. how it will look, feel and function.
Creating the Client discovery programme
The brands, artists and designers will be asked to provide Look books and/or promotional material. PR and Promotion for the event can commence. Invitations can be planned and distributed.
Planning KOPO will secure location and plan the Visual merchandising of the event.
SALES Delivery can be arranged etc.
Buyers place orders based on minimums agreed previously. KOPO represents the clients and takes sales orders. These are passed onto the client for fulfilment.
Setting up A week before the event KOPO will start holding stock in preparation. For setting up. Associates will go through training about new brands that they will be representing and will get familiar. Labelling and any installations will be planned.
Stock which has been bought for sale (outlined in more detail in the merchandise planning on pages ) is sold directly. All stock which will need replenishing can be done. Stock will be held locally in a storage unit and stock levels will be monitored closely.
KOPO will compile their programme and plan the Visual merchandising of the event and make any purchases for stock, and visual merchadising items. Hire staff
Maximising After the event KOPO will maintain relationships with all parties. Follow up with Buyers Feedback to brands Follow up with customers
Marketing event Phase 1 of the Intergrated Marketing communications targeting influencers
Links on affiliate websites
Use website to find out about KOPO and use online form to contact KOPO
Reccomendations with other business Email newsletter fom mailing list
2 way communication to enqire about the services
Registers to express interest
Learns about KOPO
word of mouth
Receive a media pack from KOPO
Use website to find out about KOPO and use online form to contact KOPO
Calls to make a buying appointment
Registers to express interest
KOPO can send more information about buying at the event
Can join the KOPO mailing list
Buy merchandise off the shellf where available
Not right for KOPO at this time.
KOPO Decides whether or not the brand is inline with
discuss with brand to discuss
Pay commision to KOPO
Downloads buyers App
KOPO passes order to the designer for fulfillment
places sales order in Buyers area
BUYER READINESS STAGE AT THIS STAGE OF ENGAGEMENT
Where the merchandise is made to order customers can make payments
Can check online to check up on the progress of orders
Aware of existence
knowledge of its benefits
Preference over competing products
Intergrated Marketing Communications Situation Analysis determining the Aims and objectives of communications strategy Situation
iEffecting retailers decisions in choosing Intermediary and Representation Client Agency relationship and compatibility As a new and small agency with no proven track record the client Angency relationship will be key to its success.
• • •
Specialism Defined target market of a modern 45+ woman, selling Both lifestyle and fashion for both B2B and B2C
• • •
The KOPO business model does not require Initial commitment from showcasing labels etc for continued participation. The business model is a good one for new labels who want to test the market and who may be new to selling at wholesale. The different scales of inclusion with KOPO can aid the transition Smaller brands/designers may seek out smaller agents in order to match budgets. Smaller brands and/labels testing markets may not want to compete with other brands at a larger agency.
KOPO has a strong brand identity and understanding of its market which buyers will come to recognize. Product mix includes lifestyle which Keeps KOPO rounded and exciting in our product offering. One stop shop to add some energy and excitement which is still in line with target market.
• • • • •
As a new business KOPO will lack the track record to demonstate its capabilities to delver. This could prove difficult when trying to attract more prestige and desireable labels to choose KOPO to represent them. As the labels get bigger and gain exposure from the KOPO pop up, There is a risk that they will move on to another agency and KOPO will have done the initial work but not go on to gain from the Lack of premises and of a permanent showroom. (location and acess) There is a risk of designers not taking the showroom seriosly as an Intermediary
Handling both retail sales and wholesale may confuse some retailers
designers are choosy about the stores they sell to as they are growing their brand They want to know they are positioned alongside the right brands (adjacency)
The business modal and pricing strategy for the services is mindful of this and charges a fee as well as commision on sales to temorary brands. Therefore KOPO income will be effected by choosy brands but still charges a flat fee so irespective of sales there will be Income. • The mixed product range and lifestyle positions the brands
For brands who are showing temporarily, this can impact on KOPO income and thus profits
Translating PR into sales
KOPO is curated event and is able to choose the quantity and product for each of the brands it works with
Advertising is expensive and smaller brands may not be finincialy stable enough to invest thus making it more difficult for KOPO to deliver if the client is unable to make an investment.
Clients ability to fulfil and deliver sales orders
Aims and Objectives of communication strategy
The opportunity is to be able to grow in size together and build strong business relationships.
• • •
As the business grows a permanent location can be established with a meeting space.
To demonstrate how pasionate, flexible and pro active KOPO is as a business. There is the opportunity to demonstrate and build a mutual respect between agent and client who.
• • • • • •
Opportunity to carve out a really distinctive new way of approaching B2B sales which is more inclusive of the end consumer which has advantages such as amazing feedback from end wearers which is not usually part and parcel of what
KOPO is as concerned with the brand positioning as the Labels themselves
• • •
Some other agencies are purely sales focussed and • will sell to anyone willing to pay. KOPO is not that type of Intermediary and the right clients for KOPO will appreciate and value that.
MARKET VISABILTY (improve buyer readiness) Emphasise KOPOs position as an agency who makes considered desisions about the compatibility of the clients it works with and the reasons behind it. Develop a transparent relationship with clients so that they are aware of the efforts being made and encourages Brand loyaly. Reassure clients of the skillsets of the KOPO team and its ability for growing their brands and achieving their goals Succesfuly communicate the KOPO vision for growth Maintain a highly proffessional code of conduct. KOPO can meet with clients in relaxed environments. It can pro active in its relationships and meet at the clients convenience. Maintain fast response times to queries and enquiries to reinforce KOPO reputation for being a responsive and attentive brand Regularly follow up and offer feedback to clients about our efforts and achievemnts
CLARITY OF BRAND and UNDERSTANDING OF ITS Ensure that both business’s and consumers are clear of the services that KOPO provides and the options available as well as clearly communicating the overall business and KOPO Brand. Persuade all those who engage with KOPO of excellent insight into the KOPO target markets and an ability to align with the market and communicate effectively with them. REPUTATION BUILDING Communicate KOPO understanding of PR and not overselling and or over exposing brands and ensuring longevity of brands KOPO represents and an ability and desire retain clients. Effectively communicate clear and consise understanding of what the Client desires and KOPOs role as working towards client goals and obectives as apposed to sales
KOPO is able to choose designers that already gaining quality buyers to attend and establish an excellent network of connections have a strong production, delivery and relationships with retailers. This way they are in a good position to maximise on the advantages and benfits that PR and brand discovery at KOPO can bring.
non personal, mass communication
Targeted advertising such as facebook ads may be used to raise awareness of the brand. Brands are able to filter ads so that they reach facebook users with ritting demographics and interests and improve the chances of them being seen by the right people. Getting as a way of getting the KOPO logo and name seen and pave the way and increase the effectiveness of future contact.
tactical short term incentives
creating one to one relationships with individual customers ie phonecalls, mailing
Discount prices may serve to devalue the merchandise, especially a the selling dates are temporary. Premium and luxury customers will be looking for something special as opposed to discounted.
Gathering adresses and building a list of quality specified target consumers and groups. Although time consuming this will be valuable. The database can be used to create Impactful targeted Direct marketing and can be added to as time goes on and the KOPO network grows.
Gifting Promotions can be used to add a positive element to the buying experience and to show appreciation of customers and improve purchase rate at the showroom and as incentive to improve the spend per head.
It is difficult to make an impact in todays competitive markets. Creating material Strong design marketing materials that are entertaining and useful to the user will be key.
Buyers can be sent a creative and beautiful Industry calander of uppcoming dates and events including KOPO Key dates such as the drop for Brand book, and selling dates. During the Showroom KOPO will effectively capture data and build and use it logically so that it is well recieved and impactful. For Customers direct marketing will be used with less frequency but to inform and excite about upcoming
Sponsership, Industry networks, sponsership and partnership
Direct marketing via website
Face to face, personally tailored messages, responsive to listener
creating and maintaining good quality relationships with many interested groups
Personal selling will be the most significant activity utilized for marketing.
Utilizing tools such as Press packs and Look books PR Shots News releases Sample collections by communications the
Forming relationships is key to KOPO and to do this Personal selling is required.
accomplishments of the KOPO staff.
Differentiated Strategy & Balancing the promotional mix There is a need to demonstrate the value and communicate very different information to each segment. as the below table demonstrates. This involves the development of a number of individual marketing mixes. Each of which serving a different purpose and segment. Choosing a promotional mix which is
- effective to both B2B and consumer markets.
-Be cost effective for the brand. -Most effective for customers who have no awareness of KOPO (buyer readiness stage one) -Supports the long term Goal and Objectives of KOPO
To attract buyers and retailers to the store and trade people who have influence over buying decisions and who have influence over press, and promotion.
To expose the brands to consumers and increae market penetration and gain loyallaty and valuabkle feedbck from.
Buying power and to store which has buying power and will generate sales orders for the showing brands
To be able to succesfully create
B2B are more relient on personal selling element with advertising, sales promotion playing a supporting role.
However the KOPO price points in the Fashion catergory and the nature of the showroom and rande depth etc makes personal selling to consumer important to the KOPO strategy. he aims and goals of KOPO showroom are less focussesd on sales volumes to consumers however they are important factor in the profitability of the showroom. KOPO is not aiming for huge sales volumes to consumer so mass communication is less mportant. More important is good footfall and effective personal selling.
Phase 1 Establish a Market presence Build a network
-Contents Marketing -Being an active presnce at Networking events -Active and engaging Social media, and Blog Content Marketing
Phase 2 Create a Buzz strengthen network Generating earned media third-party endorsement can have a powerful impact on sales. Launch campaign
-Useful, sharable, entertaining communications Generating earned media -promoting accomplishments -networking word of mouth
Phase 3 Encourage engagement
An anual networking event targeting Influencers Bloggers, Magazine, Press, Aesthetic service providers, opinion formers, network support groups, stylists, models and photographers. â€œthey connect designer businesses to new routes to market and they are key to gaining access to retailers and press for the exchange of information.â€™ Nesta report
They are seen as honest and truthful, by the retailers who rely on them for information on upcoming designers and their collections. They are important storytellers and often have a strong influence and following in social media. They play key and important roles in getting labels used for editorial exposure in the media etc.
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Phase 3 45
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risk contingency projections
ROJECTIONS RISKS Retailers aim to work directly with manufacturers to cut out the middleman in an endeavour to reduce costs. Retailers attempting to reduce costs may prefer to go to trade shows directly. Fashion retailers are focussed primarily on making a profit for themselves. Rather then stocking brands they have had the pleasure of â€˜discoveringâ€™. To counter this there needs to be strong emphasis during marketing and communication to clients of the enefits and long term value that KOPO provides to the public and the value. Many manufacturers are opting to bypass retailers and Intermediaries all together and opting for direct selling to the consumer. There is a steady growth in internet sales Fashion retailing is one of the most risky forms of retailing with the huge variations in fashion and style demand, variables in weather patterns, uncertain economics and perverse consumer buying behaviour all creating a very uncertain sales and profit outcome. Once the retail Going forward as the usiess expands the business can develop and grow its services to include Public relations, campaign planning, consultancy, tradeshow representation. These services can be provided from a HQ permanent showroom which will be solely for B2B side of operations. The two sides of the business can operate more independently whilst still informing and complimenting the holistic enterprise. More staff will be hired in order to fulfil.
Published on Aug 17, 2015