Page 1


MS STATEGIC DESIGN AND MANAGEMENT INTEGARTIVE STUDIO I PROFESSOR RHEA ALEXANDER SPRING 2016

MIKA YA-HUI CHANG | KAVEH MOEINZADEH | SHUHARN YEH

| NIKE + MIT CO-LAB PROPOSAL |

1


TABLE OF CONTENT OUR DESIGN THINKING PROCESS

INTRODUCTION THE PROGRAM | THE CHALLENGE

5

EXECUTIVE SUMMARY PROJECT OVERVIEW | OPPORTUNITIES & FINDINGS | KEY SUCCESS FACTORS

13

MANAGEMENT MIKASU.INC | OUR PROCESS | PROJECT TIMELINE

19 PHASE I: DEFINE OUR OPPORTUNITY RESEARCH & INSIGHTS | BRAINSTORMING | IDEATION

25

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

2


PHASE II: PROTOTYPING & TESTING ASSUMPTION TESTING | RAPID PROTOTYPING

65

PHASE III: OUR BUSINESS PLAN BUSINESS MODEL | MARKET CONSIDERATION | FEASIBILITY STUDY

81

CONCLUSION CONTRIBUTION TO THE ECONOMY & ENVIRONMENT

99

BIBLIOGRAPHY

106

| NIKE + MIT CO-LAB PROPOSAL |

3


NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

4


| NIKE + MIT CO-LAB PROPOSAL |

5


THE PROGRAM MS STR ATEGIC DESIGN AND MANAGEMENT

PARSONS SCHOOL OF DESIGN The Strategic Design and Management program seeks students who will be the game changers of the new economy and its new actors—digital firms, social information networks, and co-producing individuals. It is well suited for early- to mid-career professionals and recent graduates seeking to complement their design and business skills with professional application. Students are exposed to new industry contexts and practices, both within and outside of designintensive industries. Coursework incorporates cutting-edge analyses of the digital information-based economy, which help students develop new business models and organizational designs for the creative industries. Many classes are structured to replicate real-world industry scenarios. These classes provide hands-on experience in designing, managing, and improving design-intensive and creative firms—and help students develop their capacity to inspire and lead creative teams. NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

6


DESIGN STRATEGIES: CITIES, SERVICES, ECOSYSTEMS In a complex global economy characterized by rapidly evolving standards for the production and management of information, services, and experiences, leaders must exhibit flexibility and a capacity for innovation. Academically rigorous and industry focused, the Master of Science in Strategic Design and Management program prepares students to confidently create, manage, and lead design process–driven | NIKE + MIT CO-LAB PROPOSAL | organizations

7


THE CHALLENGE MIT CLIMATE COLAB CHALLENGE + NIKE

Fabrics and textiles impact our climate. A lot. How can we spark a materials revolution by rethinking how we value and use them?

WHY

WHAT

The materials we use to clothe ourselves and cover our things have a profound impact on the climate. They are all around us – in the furniture we sit on, the cars we drive and the clothes we wear. The fact is, materials matter. According to research compiled by MIT Materials System Lab, approximately 25 billion kilograms of cotton was produced worldwide in 2013, resulting in the same annual GHG emissions as 51.3 million passenger vehicles. Enough leather is produced annually to cover the state of Maryland. Polyester production for use in textiles in this year alone is estimated to generate as much greenhouse gas emissions as the annual emissions of 185 coal fired power plants. That’s a material issue.

Developing new material compositions and reducing the impact of fabric production is necessary, but not sufficient to reduce the climate impact of industries that rely on fabrics. Before we can advance and scale innovation in materials, we need to build an understanding of the challenges and opportunities that exist. We need to redefine society’s relationship with fabrics and textiles. This contest seeks novel and well thought-out ideas on how to engage industries, designers, product creators and the public in valuing, demanding and adopting lower impact materials.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

8


PHOTO COURTESY OF NIKE

| NIKE + MIT CO-LAB PROPOSAL |

9


PROJECT CAN BE IN THE FORM OF THE FOLLOWING: TECHNICAL SOLUTIONS NEW BUSINESS MODELS INTERACTIVE SOLUTIONS OR PLATFORMS EDUCATIONAL TOOLS OR RESOURCES AWARENESS CAMPAIGNS CORPORATE SOLUTIONS

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

10


A MATERIALS REVOLUTION The NIKE Challenge, through the collaboration with MIT Materials System Lab, is to seek physical, social, and cultural innovations that could help transform the way we view, make, and use materials. Unlike more traditional research, our ultimate goals for this challenge are to inspire dialogue among stakeholders and encourage improvements. This could include ways to affect consumer behavior and design choices, as well as ways to impact the supply chain. Throughout the process, we will examine the fundamentals of design process, materials used and final products correlations to better grasp their implications to the consumers and environments. Taking into consideration of the components of raw materials, efficiency/ productivity of the proposal as well as the

relentless pursuit of testing, we will propose a new systematic model to embrace low impact materials to be included in a commitment by NIKE to reach 100-percent renewable energy in company-owned-andoperated facilities by 2025. Product design practice is an evolving art form. We have made tremendous improvement in methods for and execution of the process in recent years. Yet the challenge of environmental sustainability of products is one area where design practice remains largely in the dark ages. In this paper, we will embrace the imperative of design for environment and evolve design practices to address this challenge.

| NIKE + MIT CO-LAB PROPOSAL |

11


NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

12


| NIKE + MIT CO-LAB PROPOSAL |

13


EXECUTIVE SUMMARY INFINITY COLLECTION

We joined together to form MiKaSu Inc. as a creative agency to create a package proposal for Nike. Our proposal will offer a revolutionary garment collection and app service as a plug-in on the already popular “NIKE plus running�. Our App leverages the exisiting platform of NIKE+ Running which includes 18 million extreme users. We will also develop a collection of smart garment alongside the App called "INFINITY CLLECTION". New features will consist of sustainable performance apparel with embedded solar panel technology to instantly monitor vital biological data. In order to increase popularity of the new product, a subscription system will also be introduced with an affordable monthly payment plan. Our primary strategy is to introduce Nike Infinity as the most for the thousands who crave for high-tech sportswear to complement their exercise activities on the NIKE platform.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

14


OUR GOALS

COMPANY AND MANAGEMENT

• Encourage outdoor exercise experience by a seamless App service • A revolutionary collection of smart garment aims to improve people's HEALTH and exercise PERFORMANCE • A disruptive subscription model to fulfill people's ASPIRATION to enjoy the premier technology & service at a reasonable price.

MiKaSu Inc will be headquartered in Manhattan, NY, a location providing extremely high accessibility to the fashion industry as well as an innovative center. The owners of the company, Mika, Kaveh and Shuharn, have collectively over twenty years of experience in fashion, manufacturing and logistics businesses. Based on the founders’ connections in the garment manufacturing industry, initial R&D cost can be absorbed by the manufacturer and inventory can also be reduced to its minimum. A shared profit scheme will also be introduced to alleviate the risk of excess overhead cost.

Once underway we will expand our scope and take advantage of high-margin new garment sales and leverage our existing connections with the manufactures to sell and service these products.

| NIKE + MIT CO-LAB PROPOSAL |

15


OPPORTUNITY

COMPETITIVE ADVANTAGE

There has been a dramatic growth in the market for garments using smart textiles and other wearable technologies. Trends in the sports and clothing industries towards manufacturing of specific products for dedicated uses (running, skiing, snowboarding etc.) has not only led to the introduction of products with integrated functions using smart textile technologies, it has also seen the development of virtual communities and widespread apps which offer consumers entirely new experiences and bind them closer to brands. They also provide manufacturers with opportunities to gain direct feedback as to how consumers use their products. The performance apparel industry is one of the fastest growing sectors of the global textile industry. This growth of performance apparel market can be attributed to the changes in the lifestyle of the majority of people today. The global market for performance apparel is growing day by day and performance apparel will soon outperform all sportswears.

MiKaSu is headquartered in New York with strong affiliation with Parsons School of Design. Our competitive advantages are innovative ideas as such re-design of smart garments, subscription system with cost control mechanism through collaboration with the manufacturer and integratable plug-in app with NIKE plus Running. Innovative design ensures us to become a leader in the industry not just as a follower, but the supreme leader. Beauty, revolutionary and practicality are among the ingredients that we injected into our collection. Pioneering an industry first, subscription system, to allow more exercise lovers to join the platform further drive our cost down on all levels. Our interaction with customers is 24/7 with endless tasks and options that one can choose to participate based on the NIKE Infinity platform. The more people involved in our program the more we attribute to the environment to close the industrial loop as a circular economy.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

16


FINANCIALS MiKaSu Inc. expects to earn a modest profit by year two based on projected sales. Our projections are based on the following key assumptions: • Initial growth will be moderate as we establish awareness in the market • Initial equipment purchases will stay in service for an average of three to four years; after two years we will begin investing in "new" equipment to replace damaged or obsolete equipment • Marketing costs will not exceed 30% of sales • Residual profits will be reinvested in expanding the product and service line

We project first-year revenue of USD 4,500,000 and a 10% growth rate for the next two years. Direct cost of sales is projected to average 20% of gross sales, excluding 10% for the purchase of equipment and 5% for the purchase of ancillary items. Net income is projected to reach USD 34,600 in year three as sales increase and operations become more efficient.

Many Large, Successful Companies Started With The Following: They Solved A Problem In A Novel Way They Used That Solution To Grow And Spread Quickly That Success Was Based Largely On Their Product - Eric Schmidt

| NIKE + MIT CO-LAB PROPOSAL |

17


NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

18


| NIKE + MIT CO-LAB PROPOSAL |

19


A MULTIDISCIPLINARY TEAM

MIKA YA HUI CHANG Prior to moving to New York, Mika worked as an event organizer, business consultant, shipping operation assistant, and a flight attendant in Taiwan. Her diversified background has taught her the importance of finding solution for clients across all sectors. She believes that the art of inter-personal skills, vision of strategic design and communication skill all make up as the critical ingredients for a successful project.

KAVEH MOEINZADEH During his time in New York, Kaveh has dabbled in several sectors in the creative field, ranging from corporate event production, high-end residential interior design, and art curation. Alongside his creative endeavors, Kaveh is pursuing his master’s in strategic design and management at Parsons, giving him the foundation needed to expand his practice.

SHUHARN YEH Shuharn is a graduate student in Strategic Design and Management in Parsons. Armed with the experience from various non-profit organizations and multiple industries, she equipped with the high flexibility to face challenges, learn from them to innovate, and propose new ways to improve the existing paradigm. Previously, she worked for in Medical Center, She is interested in the field of fitness, wellness, health care, and wearable tech, for technology solution.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

20


OUR PROCESS PARSONS DESIGN THINKING METHOD

UNDERSTAND

SYNTHESIS

IDEATE

PROTOTYPE

CREATE

TO UDERSTAND THE

TO GENERATE PREVIOUS

TO DEVELOP THE

TO BUILD MODELS OF

TO PITCH A FINAL

CONTEXT OF CURRENT

RESEARCH RESULTS

IDEAS BASED ON THE

VARIOUS IDEAS TO

PROPOSAL DELVING

BUSINESS THROUGH A

AND CLUSTER THE KEY

“HOW MIGHT WE”

SOLVE A

INTO YOUR

360 HOLISTIC ANALYSIS

INSIGHTS

QUESTIONS AND OUR

GIVEN PROBLEM SPACE

PROCESS AND RESULTS

CHALLENGE THROUGH A

AND KEEP IMPROVING

THAT MAKES YOUR

CO-CREATION PROCESS

THEM UNTIL FINDING

BUSINESS CASE

DESIGN RESEARCH

THE FINAL SOLUTION

- Ecosystem Map

- Persona

- Co-creation Process

- Paper Prototype

- Market Consideration

- Stakeholder Map

- Affinty Map

- Brainstorming

- Workshops

- SWOT Analysis

- Exploratory Research

- Journey Map

- Research

- Interviews

- Competitor Analysis

- In Depth Interview

-“How might we”

- Trend Analysis

- Questionairre

- Position Matrix

- Digital Prototype

| NIKE + MIT CO-LAB PROPOSAL |

21


PROJECT TIMELINE 15 W E E K S A L LOT E D T I M E

8 WEEKS UNDERSTAND QUANTITATIVE & QUALITATIVE RESEARCH

SYNTHESIZE ANALYSIS/SYNTHESIS REDEFINING THE CHALLENGE

IDEATE BRAINSTORMING CO-CREATION FORM IDEAS

7 WEEKS PROTOTYPE ASSUMPTION TEST ITERATION PROCESS: DISCOVER | DESIGN | DEVELOP | TEST

CREATE BUSINESS RATIONALE KNOWING THE LANDSCAPE AND MAKING THE CASE

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

22


OUR TEAM WORK After 8 weeks of research, synthesis, and ideation phases, we teamed up again based on the tipping point we chose to develop. Three of us think that changing people’s behavior by wearable technology is an interesting idea with most potential. The rest 7 weeks of the semester, in order to come out with the final deliverable, we have lots of work to do. Inspiration - First, to find who might we design for and redefine the challenge, we research around wearable technolgy and gaining insights from the related stakeholders. Ideation - After knowing the current situation and the pain points of potential users, we redefine the challenge by creating new “How might we..” questions. Implementation - We tried to create our value proposition to solve current unmet needs. Based on it, we built several models with low fidelity to test our hypothesis, find our target users, and the actual value resonated with them. | NIKE + MIT CO-LAB PROPOSAL |

23


NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

24


| NIKE + MIT CO-LAB PROPOSAL |

25


IDENTIFY PROBLEM AREA To understand better the areas that needs change immediately and in the near future, we proceeded to develop stakeholders map and industry ecosystem maps. Through these tools we identified who were the most important actors and what they were doing in order to develop sustainable solutions in terms of materials. From our analysis we concluded that the industry was developing successful strategies along the value chain and there were different actors performing these activities. However, there was a disconnection between these efforts and what the consumer was perceiving. Indeed, although the apparel industry invest millions in marketing campaigns, few of those millions are spent in campaigns that showcase the efforts in terms of material sustainability.

PEO

EMPLOYEE WELLFARE

SPORTS WORLD

Event Sponsorships Sports Tournaments Advocates Exercise Tracker

HEALTHY LIVING Slow Living Slow Cooking Health Issues

PERFORMANCE

Sou Design Manufacturing

PROFITABILITY | COMPANY EFFICIENCY

Ma

COMPETITORS Adidas Under Amour Reebok Lululemon Asics PUMA New Balance

Organization/HR

ORGANIZATION Sustainable Policy Campaign Innovation Revenue Models

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

26

LSP OEC BICE SCA


OPLE

E | FARE TRADE | SOCIAL Code of Conduct Culture Leadership HR | CSR Trends Sustainable Consumption Business Innovation Brand Loyalty Athletes Demand Trainers Reduce | Reuse | Amateurs Recycle Sports Fans Behavior Sports Teams urcing

USERS

Consumer Behaviour Retail

PLANET

arketing CSR

P CD EP AP

EFF TTB REDRESS SAC

ENVIRONMENT| RESOURCES | ECOLOGIES Logistics

GOVERNMENT

THE ECOSYSTEM MAP The first part of our process began by drawing the the boundaries and intersections within sportswear industry eco- system. Through this process we were able to identify areas that represented places for intervention. This gave us a comprehensive understanding of various internal and external factors that affect the operations of the industry.

CERTIFICATIONS Ecolabels LEED Carbon Footprint Global Index

Council of Members Sustainable Guidelines Regulations & Policy Green Incentives Collaboration with Major Players

| NIKE + MIT CO-LAB PROPOSAL |

27


Design

Manufacturing

STAKEHOLDER MAP The next step in understanding the context of our mission, was to map the various stakeholders and existing relationships between them. We also identified feedback loops and potential areas for intersection between different stakeholder groups. From this point, we were able to recognize the areas to focus on during the upcoming research phase.

Organization/HR

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

28


Sourcing Reuse / Recycle Consumer Behaviour

Retail

Marketing CSR

Logistics “There are no separate systems. The world is a continuum. Where to draw a boundary around a system depends on the purpose of the discussion.” - Donella H. Meadows, Thinking in Systems: A Primer

| NIKE + MIT CO-LAB PROPOSAL |

29


FIELD TRIP - NIKE TOWN | MATERIAL CONNEXION

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

30


APPAREL INDUSTRY BY NUMBER Over the last decade sustainability and sustainable growth has become one of the most prominent and important topics in our society. Second to oil, fashion and textiles is the most polluting industry in the world. Every stage in a garment’s life threatens our planet and its resources. It can take more than 20,000 liters of water to produce 1kg of cotton, equivalent to a single T-shirt and pair of jeans. Up to 8,000 different chemicals are used to turn raw materials into clothes, including a range of dyeing and finishing processes. And what becomes of the clothing that doesn’t sell, falls apart or goes out of style? More often than not, it is discarded in giant landfills.

| NIKE + MIT CO-LAB PROPOSAL |

31


FRAMING RESEARCH OBJECTIVE WORKSHOP WITH FJORD We began “rolling up our research sleeves” by collectively writing a research outline based on the workshop and presentation by Natalia from Fjord. Designing a research framework guided our team both individually and as a group throughout our entire process. We constructed a project overview within the specific context of consumer behavior and identified the key questions for which we needed answers. Finally, we determined the methodology and approach we would use to collect our research.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

32


360 HOLISTIC RESEARCH OF FASHION INDUSTRY We divided our class into groups to do research around the chain of custody. Here we hightlight part of our research related to consumer behavior, brand communication, and recycle programs to see if we can find the tipping point to make change around material consumption.

MATERIAL & TECHNOLOGY REUSE / RECYCLE PROGRAMS

MATERIAL SELECTION DESIGNER /

MANUFACTURER

CONSUMER BEHAVIOR

PARTNERSHIP

DRONE BRAND COMMUNICATION

| NIKE + MIT CO-LAB PROPOSAL |

33


"The service experience is made up of the customer’s interactions with many touch points, and service quality can be defined by how well the touch points work together for the customer."

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

34


CONSUMER BEHAVIOR

OBJECTIVE

KEY INQUIRY AREAS

Conduct research on consumer behaviors and motivations that influence purchasing decisions and post-consumption disposal while identifying recurring trends and patterns.

• Who are extreme users? Potential customers? • What factors motivate the users to purchase? • How do consumers perceive brand, sustainability initiatives, products, & services? • What associations do people have with various materials • What types of material do consumers associate with sustainability? • What information/experience will create a genuine and influencing connection between consumers and sustainability in the apparel industry? • What sustainability information/ initiatives resonate most with consumers? • What aspects of store design and website experience lead to most satisfied customers?

| NIKE + MIT CO-LAB PROPOSAL |

35


ATHLETES

INTERVIEWS

DESCRIPTION The athletes is a gigantic segment that includes all gender and ages. Athletic activities change through ones live, according to the age and lifestyle. Athletes priorities change throughout their lives as the grow up, the related lifestyle changes as well. In young teenagers and college students is mostly about being part of a team, compete and being attractive. In their mid 20s is more about staying active, being attractive and balancing with work. In their 30’s is about feeling good, feelling healthy and a strong need for having an activity outside work. As familly grows in the 40s health and familly bonding are the priorities. Later in life is more about healthier and staying active and young.

SASHA, 31 YEARS

LOUIS, 57 YEARS

PAULA, 29 YEARS

ALVARO, 61 YEARS

DIANA, 27 YEARS

Yoga changed my life, I starded practicing 5 years ago, I became a yoga teacher cause I want to spread the benefits that it brought to me. I have been an active person all my life a competitive dancer and a high school voleyball team. I currently work at a sustainable athletic apparel company. Sport athletic and competition has made the difference throughout my life, making me healthy strong awake rapid and solving problems knowing how to face adversity and success as part of training to eternity. I want my athletic wear to look good! Something I can wear to the gym and to lunch after if I have to. Style usually is what I first consider, but comfort is a must.

Since I am into sports, I rarely shop for other things now

I just shop for things that I really know will have multiple uses and will not go out of fashion fast. I honestly dont like fast fashion.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

36


PERSONA

Athletes tend to have a more healthier lifestyle through out their lifes. Food and free time activites gravitate arrounf their practice of prefference

I can’t imagine my life without sports they make me a better human being

30 years UX designer Happy Single & Uncle

ASPIRATIONS Its hard to be 100% healthy, work out, buy organic, recycle, volunteer... etc convenience sometimes wins

LIKE&DISLIKES “I challenge myself to free myself to train or workout”

cia

lize

Wo rk

s

Tra

ins

Goals

• Challenge myself everyday • Be happy. Be Part of

Passionate

Week Ends

En

ter

T ter Plays rains tai ns

En

tai

ns

Runs Bike Yoga Long Board

So

Goals

Soccer Voleyball Yoga

I have a lot routines related to my fitness life, this is my lifestyle”

Challenging

Eats Out Meets Frieds

Week Days

Lives in New York From Argentina SUPER ACTIVE

Runs Gym Yoga

Possitive

Networking

ROUTINES

Mindfull

Co-Workers

Active

Tinder

Bold

Office Challenge Routine

SuperFIT Martin

Motivators

something great. • Personal & Career Growth • Create my own business • Built Family

Achievements • • • • • •

Challenge myself Rewarding Results Healthier Life Feeling Good Feeling Energetic Motivation to eat well

INTERACTIONS

| NIKE + MIT CO-LAB PROPOSAL |

37

Frustrations • I wish I had more time • Too much time working. • Team sports: is hard to find a team to practice more often. • Sustainable solutions are less available


FASHIONISTAS DESCRIPTION Fashionistas are characterized as consumers who base their apparel purchasing decisions on their personal style preference. They follow and create the latest trends in fashions. Fashionistas spend a significant amount of their time shopping, creating outfits. They get style inspiration from social media, fashion magazines & blogs and celebrities. “I view my wardrobe as my chosen skin. I use it to convey my personality, mood & confidence �

KEY FINDINGS

Strengths Weaknesses Aware of trends Willing to invest money in high-end Enjoy thrift shopping Use social media to research More aware of social issues in fashion

Unaware of $$$ spent on fashion Often attracted to fast fashion Unable to find specifc items thrifting Associate success with materialism Do not shop for sustainable fashion

Opportunities

Threats Key segment for inspiring/setting trends Ability to have negative impact Access over Ownership Materilastic tendencies Improved thrifting experience Will only choose sustainable product Social Media campaigns if comparable in price, quality, style More clearly labeled sustainability index & convience

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

38


SURVEY Colors Materials Brand Fit Utility Quality

WHAT ASPECTS OF DESIGN ARE MOST INFLUENTIAL IN PURCHASING DECISION

SHOPPING BEHAVIOUR Fashionista’s report shopping for apparel on a monthly basis. 80% reported that they were unaware of the amount of money they spend on apparel in a year. Fashionista’s report researching looks and items online prior to visiting retail locations to try-on garment before purchase.

CONTRAINTS Fashionista’s biggest reported constraint is money. They want to invest in their favorite fashion labels but the expsense can deter them. Another constraint was finding the perfect fit. Fit is the most influential aspect of the design they are drawn to. When it comes to shopping for sustainably manufactured items, there is a lack of awareness which stems from lack of comparable labeling.

ASPIRATIONS Fashionista’s aspire to have enough money to purchase high-end labels. They tend to associate success and achievement with material objects. The more disposable income they have, the more they will spend on fashion.

| NIKE + MIT CO-LAB PROPOSAL |

39


PERSONA GOAL

- Get Promoted at Work - Lose 5 lbs - Afford that expensive bag

LIFESTYLE

- Materialistic - Busy

INFORMATION SOURCES

AGE OCCUPATION STATUS LOCATION INCOME

- Instagram - Vogue - Celebrity Style

32 DIRECTOR OF SALES SINGLE MANHATTAN, NY $80,000

I. DISCOVERY

II. PARTICIPATION

POSITIVE

NEUTRAL

Window Shopping

Purchase

Instagram Try-On

NEGATIVE

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

40


BRANDS

BRAND LOYALTY Brand Name Brand Values

Price Convenience

CLOTHING

AWARENESS

Design/Style

Climate Change

Quality

Social Justice

Comfort

Good Health Food Justice

Sustainable-Eco-Friendly

III. USAGE

IV. CLOTHING CARE

V. END-LIFE

Recieve compliments Donate Shop Again

Put together outfit Stain Garment

Dry-Clean

| NIKE + MIT CO-LAB PROPOSAL |

41


ECO-CONSCIOUS DESCRIPTION The Eco-concious or sustainable users are highly aware of their purchasing habits. ‘Concepts of concern’, ‘information about environmental impact’ and ‘willingness to act’ are seen as the key predictors of environmentally conscious consumer behaviours. These consumers act as indirect advocators to other consumer types. Though they value style, perforamce of the garment and susatinably produced are of a higher priority.

“The threat to the planet is us. It’s actually not a threat to the planet - it’s a threat to us.” Margaret Atwood.

KEY FINDINGS

STRENGTHS

- Consumers are extremely aware of the material choices they make. - They like to advocate their close acquiantces about sustainability.

OPPORTUNITIES

- Willing to repair their products to increase the sustenance. - Influenced by documentaires and TED talks.

WEAKNESSES

- Prefer to shop at stores that they are sure of the sustainability practices. - Give a great deal of importance to word of mouth; trusted friends.

TTHREATS

- Inconvenience in obtaining eco-conscious products is the biggest barrier for most of the users.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

42


INTERVIEWS Eco-Conscious consumers are in look out for apparel designs that are unique and those that are local sourced. They often purchase from exhibitions or society clothing forums. Most of the consumers make an effort to be sustainable in various forms. They try to eat local, be sustinable in their transport options and make an effort to obtain locally made clothes and mazimize it’s durability by taking proper care. “I have an aunt who is exactly my size and she gives me gorgeous leather coats and shoes. I love having them in my closet. It’s like my own vintage collection.” “I purchase clothes from these society exhibitions by independant designers. They are unique designs and are often of very good quality.” “I purchase a lot of FabIndia and Daram clothes. But the only issue (with these) is that the colour bleeds. It is so hard to maintain these kurtis.” “I do not know much about sustinable clothing, but I am highly aware of the fuel I consume. And that is why we (my wife and I) decided to buy an electric car We still have a fuel car for emergencies.” “I am a homemaker. I do not use a car much. I walk down to the local grocery stores, you know not the Reliance Fresh, but the small street stores and purchase fresh vegetables everyday. that is being sustainable no?” | NIKE + MIT CO-LAB PROPOSAL |

43


PASSIONATE ECO-CONSCIOUS CONSUMER GOALS & ASPIRATIONS

- Have a positive impact on the planet. - Stay healthy and active. - Inspire others to be eco-conscious.

LIFESTYLE

- Practical and realistic. - Stressed out with ebvironmental issues.

INFORMATION SOURCES

- Friends and Colleagues. - Documentaries and TED Talks. - Websites and Online Forums.

AGE OCCUPATION STATUS LOCATION INCOME

45 JOURNALIST -ENVIRONMENTAL ACTIVIST SINGLE CHICAGO, IL $85,000

I. DISCOVERY

II. PARTICIPATION Websites are informative.

POSITIVE

Quality of products are worth the price.

NEUTRAL Need Driven

NEGATIVE Online Social Forums NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

44


BRANDS

BRAND LOYALTY Brand Name Brand Values

Price Convenience

CLOTHING

AWARENESS

Design/Style

Climate Change

Quality

Social Justice

Comfort

Good Health

Sustainable/eco-friendly

Food Justice

III. USAGE

IV. CLOTHING CARE

V. END-LIFE Donate Shop Again

Inspire through Apparel. Multiple Usage.

Extremely high maintenance.

| NIKE + MIT CO-LAB PROPOSAL |

45

Discard consciuosly.


BRAND COMMUNICATION

OBJECTIVE To conduct research on how brands help their customers identify and take advantage of “sustainability”, while identifying the disconnect between the Socially Conscious Mission of a brand and how the audience perceives it. We will be studying how brands (around various industries) communicate the benefits of sustainable behavior so it resonates on a personal level with consumers, consequently sparking a change in action. • • • •

Behaviour change Awareness campaign Benefits for the customer Customer engagement

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

46


KEY INQUIRY AREAS

• How does Nike communicate its value to the target audience? • How it impacts customers? • How does NIKEs direct and indirect competitors communicate with its customers? • How brands in different industries are leveraging customer behaviour towards sustainability? • How the previous approaches/ attempts for communicating fashion sustainability impacted on consumer’s demand? Why? What more is needed? (Direct Competitors)

• How brands add value to their value proposition(s) in congruence with being sustainable that could drive the consumer to change their behavior? • How did other industries/fields disrupted the established markets towards more environmental conscious market? (industries like food, transportation, lighting, paper etc) • Which areas does Nike concentrate in terms of sustainability?

| NIKE + MIT CO-LAB PROPOSAL |

47


ANALOGOUS RESEARCH | AUTOMOBILE INDUSTRY Understanding and synthesizing the already published data and reports from internet to curate holistic scenarios about how different apparel industries promote sustainable initiatives and awareness campaigns. Looking at the existing industry and other stakeholder’s efforts of communicating and valuing sustainability through different mediums and channels like current market demand, annual reports, CSR, Case studies, ratings and through social media like Facebook, Twitter, Instagram, Youtube etc. Another aspect of desktop research includes analogous research of different industries including automobile, food, furniture etc. This research will help gain insights about how different industries leverage the value proposition of sustainability to spread the awareness among their consumers.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

48


| NIKE + MIT CO-LAB PROPOSAL |

49


DESKTOP RESEARCH /CURRENT RECYCLE PROGRAMS

ACCORDING THE WAY IT FUNCTIONS, THE CURRENT RECYCLE PROGRAMS CAN BE DEVIDED INTO 7 CATEGORIES: Partner with other company to deal with

Provide in-store product voucher or discount

Create multiple use of recycled materials.

the used goods they collected. Ex. H&M,

for consumers who recycle their used

Ex. Bonded Logic, Recycled denim turned

Levis, Reformation, Uniqlo

goods. Ex. H&M, Levis

to a building insulator; Worn Again, Textileto-textile, chemical-recycling technology

Provide free-shipping label for consumers

Take recycling as one of their production

to send their used goods back for recycling.

process. Minimize garbage to landfill. Ex.

Ex. Reformation

Patagonia, Apple

The organizations or companies which help

Provide repair service for their own product.

individual or companies to do recycle. Ex.

Ex. Patagonia

I:CO, GrowNYC, 2ReWear

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

50


FUTURE TREND FOR RECYCLING TIME SPACE

Efficiency, Easier Access, and Advanced Technology to recycle in the shorter period of time.

INNER SPACE

Study in consumers’ phycological behavior and find the motivator for people to do recycling.

MICRO SPACE

New technology to transform material into more reusable material. (”The future of textile recycling lies in the supply chain, not retail stores.” “Textile-to-textile, chemical-recycling technology”)

CYBER SPACE

“Greater interaction among all social media or rewards program to create a recycle-friendly platform.

DESIGN SPACE

All products associated recycle procedure are more fashionable and attractive to people

GREEN-TO-BLUE SPACE

Decomposed the recycled products into various implication of technologies. (Ex. Bonded Logic uses recycled denim as building insulator. Wal-Mart uses rubber in store baseboards that is made partly from old diapers, steel containing recycled components and concrete composed of fly ash. )

PLAY SPACE

“Creation of recycle platform becomes an online competition worldwide. People can compete online for better result.

INTER SPACE

“Create an universal recycle platform for all sectors (government, end users) to interact with each other.

STORAGE SPACE

Extract ingredients from recycled materials to enhance storage capability

OUTER SPACE

Develop an universal recycle program for all countries in outer space

| NIKE + MIT CO-LAB PROPOSAL |

51


THE EXPERT INTERVIEW RON GONEN DATE: 2 MAR 2016 TIME: 9:30 - 10:00 AM(30 MINUTES)

ABOUT RON GONEN Ron is the Co-Founder and CEO of the Closed Loop Fund. The Closed Loop Fund was formed by a group of the world's largest manufacturers, consumer goods companies and retailers to invest in municipal recycling and waste diversion programs. Prior to the Closed Loop Fund, Ron was the Deputy Commissioner of Sanitation, Recycling and Sustainability for New York City. He joined the Bloomberg administration with the task of rebuilding NYC's recycling program and developing a plan to divert over 30% of New York's waste stream from landfills by 2017 and over 70% by 2025. Ron has been an Adjunct Professor at Columbia Business School since 2010. In 2012, he was the recipient of the Social Enterprise Teaching Award for Excellence in Teaching. From 2004-2010, Ron was the Co-Founder and CEO of RecycleBank. During his tenure as CEO, the company grew from an idea into a company that serviced over 50 cities and over 1 million households. RecycleBank was recognized with a number of business and environmental awards

including the Philadelphia Sustainability Award, The Conference of Mayors - Public/ Private Partnership of the Year Award and a Technology Pioneer award from the World Economic Forum. From 1998-2002, Ron was a management consultant at Accenture and Deloitte. Ron has been a recipient of a number of environmental and business awards including being recognized as a 'Champion of the Earth' by the United Nations Environment Program which is the highest distinction for environmental protection given by the United Nations and recognizes outstanding visionaries and leaders in the fields of policy, science and entrepreneurship and the Medal of Excellence from Columbia University which recognizes alumnus under the age of 45 for excellence in scholarship, public service and professional life. Ron was a Henry Catto Fellow at the Aspen Institute is currently a member of the Council on Foreign Relations. He holds patents in the recycling industry and rewards/loyalty industry. Ron received an MBA from Columbia Business School.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

52


INTERVIEW QUOTES

SUGGETION FOR FASHION INDUSTY

“ Cost of recycle should be a part of an “overall manufacturing cost” to the manufacturer, NOT as an additional cost to the retailers or consumers.”

" Fashion retailers should select materials that meet the demand of the recycling market and make sure that these materials are easily to fall apart or disassembled. In addition, they should monitor the recycle program making sure it encourages consumers to bring back used products. "

“ Corporate responsibility is to take back whatever they produced and put the back to mother nature.” “ To reduce the packaging material used and toward the goal to eliminate the package is the first step for sustainability.”

| NIKE + MIT CO-LAB PROPOSAL |

53


SYNTHESIZE RESEARCH INSIGHTS WORKSHOP WITH FAHRENHEIT 212 In class, we learned how to synthesize our research with Jack and Lisse from Fahrenheit 212. They brought constructive method and practiced with us through a quick brainstorming process. This workshop helps a lot for our synthesis phase of the project. To turn the finding and information into meaningful and generative insights is an important stage in design thinking process. After pulling and categorizing the insights from all our research and discoveries during field research, we combined some insights with others to come up with final opportunities that we can then brainstorm around. We as design strategists, believe in co-creating and team building through the design thinking process which entails us to generate empathy with the core users and build on the challenges they incur. These challenges present great insights and greater opportunities.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

54


7 TYPES OF CONSUMER INSIGHTS Behavioral: solving for pain points hidden in how we behave Functional: transformation product utility Emotional: transforming how it makes me feels Experiential: transforming the interaction process Situational: transforming the when, the where, and the how often Interpersonal: transformation the value of my interaction + relationship with others Choice-Based: transforming the choice | NIKE + MITset CO-LAB PROPOSAL |

55


EXTRACT RESEARCH INSIGHTS

BEHAVIORAL

FUNCTIONAL

EXPERIENTIA

EMOTIONAL

Being an active person

Athletes want to performs

I

creates awareness about

and take care of health,

in whatever challenge I

small compan

one's

health,

top priority are shoes,

undertake, specially if it

a sustainable

performance.

then equipment and then

involves a new sport, yoga

organic

Yoga and other mindful

apparel.

type. I push myself a lot.

well-known

activities create greater

Shoes= Lower impact,

self

healthier joints,

food

body, and

awareness,

and

am

very

passionate

People tend to

etc.

c

with the same People FEEL the materials.

its relationship with the

comfortable Journey.

social and environmental

Equipment=Safety and

context.

Performance. Apparel= Comfortability and Identity.

Consumers responds to

Brands

don´t

want

to

discounts or rewards in

say they are sustainable

order to act

because of liabilities

Convey performance in

Even though

terms of emotions

will donate m

usually leave t Customers feels content

my closet for

and

proud

that

they

when

told

before I give

helped

the

to charity. I ca

environment

that way.

current

After recycling, consumers

Consumer ha

or discount will motivate

recycle programs proceed

feel doing something good

efficiency vs. c

consumers to do recycle.

with many constrains and

to reduce the guity of of-

is important

without transparency of

ten-purchasing behavior.

Incentives

like

reward

Consumer

feel

the process.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

56


AL

INTERPERSONAL

SITUATIONAL

o trust more

goes

Goal Setting, Challenges

Price is always a tradeoff

nies that have

beyond ‘looking good, to

& Achievement are the

if the benefits are clear,

offer, local,

get a significant other, get

main motivators of active

comparable and trustable.

attention or recognition’

individuals.

people

Friendly (or not Friendly)

Consumers will pay

a sustained active life

Competition

50-100% more depending

behaviour. Feeling good is

action.

...than

big

corporations

e offer.

When

the

tend

goal

CHOICE BASED

to

create

encourages

on the need and benefits.

often more rewarding.

Proved Durability, Performance and Style.

People tend to trust more

h I know I

DIY culture/platforms

my clothes, I

effectively changing the

them lying in

behaviour and creating

few months

awareness around

them away

sustainability.

an part easily

small companies that have a sustainable offer, local, organic

etc...than

well-known

big

corporations

with the same offer . They immediately deduce that

Would choose sustainably made clothes if clearly labeled and comparable in price and quality

it's a marketing strategy to compete in a new market.

ave no time,

Consumers recycle

To make behavior changes

Consumers decide

convenience

in store when they

or focus on social issues.

between being

are going to buy

It’s not only about self-

fashionable and being

something

correlation, but also if their

environmentally friendly

friends are related to the issue.

| NIKE + MIT CO-LAB PROPOSAL |

57


CLUSTER KEY INSIGHTS Finally Clustering observations that seem related and seek out ones that are in tension with one another - ones that appear to be opposing forces. See how these clusters begin to coalesce and form themes. Use the Five Whys to go deeper into the observation to reveal more insights.

There is an increase in wearable products and they can be sustainably powered or no power needed at all.

Designers say leaders and customers need to feel a sense of urgency to take action around their product sustainability impact to reduce overall material use.

Added customisation with new materials and processes to products will avoid products being easily discarded.

Product creators need a tool to review and rate manufacturers and materials for their ethical and sustainable practices—local and abroad.

More sustainable materials already exist and are being underutilized due to cost and a lack of incentives and organization of the information..

Product creators want a way use donated, trashed material as new, raw material.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

58


Younger adults and teens react more positive to celebrities and internet influencers.

Being an active person creates awareness about one's body, health, food, and performance as they already engage in tracking behavior.

Boasting sustainability practices can put a brand under the PR gun, causing many brands to under sell or under promote their positive impact.

Price is the real trade off when making a purchasing decision— if benefits are clear, comparable and measurable.

Brands want to express a better, more differentiated value proposition beyond being “green.”

16-18% of Americans thrift shop and the industry expected to grow 20% by 2020 as the sharing economy grows.

Future consumers don’t have preconceived notions about sustainability.

People recycle based on efficiency, convenience and/or for incentives—currently only 15% of textiles get recycled.

| NIKE + MIT CO-LAB PROPOSAL |

59


BRAINSTORMING IDEAS Through our process of desk research we analyzed the current scenario around material sustainability, field research helped us grasping the real aspirations and challenges of companies and their employees, the personas + journey maps + affinity maps led us find pain points and opportunities to build upon without room for assumptions. These whole 8 weeks of intensive process led us some very important points of opportunities that we believe would have potential to help us closer to our goal.

We land on our idea - sustainable behavior tracker - based on the key insights as below: Insight - Sustainable Choices Sustainable awareness starts from influence from their close network, or a close interaction with the extreme situation. Behaviour change is empowered by a direct motivation to do good. Price is a real trade off when making the decision, if benefits are clear, comparable and measurable.

Through Ideation (with trend mapping) we are now building upon transforming innovative ideas from ‘swing for fences’ to more practical solutions which would entail involvement and contribution of all the present and future stakeholders.

Insight - Behavior Change Being an active person creates awareness around one's body; health, food and performance. Tools like FitBit leverage gamification to engage users by tracking their health information and motivating them to achieve greater goals.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

60


PAIN POINTS OF CONDUCTING SUSTAINABLE BEHAVIOR THERE IS NO INSTANT RESULT & ACHIEVEMENT FOR ME BY DOING SO

FEEDBACK

DO NOT PERCEIVE IT IS AN INTERESTING / COOL THING TO MAKE SUSTAINABLE CHOICES

TRENDY IMAGE

THE DAMAGES OF ENVIRONMENT ARE THE FUTURE ISSUES, NOT IMMEDIATE TOMORROW

IMPACT

DO NOT KNOW ANY FRIEND IS DOING SUSTAINABLE BEHAVIOR

SOCIAL NETWORK

THERE IS NO CLEAR INSTRUCTION FOR PEOPLE TO CONDUCT SUSTAINABLE BEHAVIOR

DEFINITION & INSTRUCTIONS

DO NOT KNOW HOW INDIVIDUAL BEHAVIORS COULD CHANGE THE ENVIRONMENT

CONNECTION

DO NOT KNOW THE OUTCOME OF THEIR SUSTAINABLE BEHAVIORS

MEASUREMENT

| NIKE + MIT CO-LAB PROPOSAL |

61


HOW MIGHT WE ...? HOW MIGHT WE SPARK A MATERIALS REVOLUTION BY RETHINKING HOW WE VALUE AND USE THEM? HOW MIGHT WE CREATE VALUE & INCENTIVES FOR PEOPLE TO MAKE SUSTAINABLE CHOICES? HOW MIGHT WE CHANGE THE WAY THAT PEOPLE PERCEIVE SUSTAINABILITY INSTEAD OF A MORAL RESPONSIBILITY.

HOW MIGHT WE PROVIDE A EASY GUIDE/ INSTRUCTIONS FOR PEOPLE TO FOLLOW?

HOW MIGHT WE INCREASE PEOPLE'S ENGAGEMENT OF SUSTAINABLE BEHAVIOR?

HOW MIGHT WE MOTIVATE PEOPLE TO REDUCE MATERIAL CONSUMPTION BY UNDERSTANDING THEIR OWN BEHAVIOR?

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

62


IDEATION Brainstorming is a process using a set of specific rules and techniques which encourage and spark off new ideas which would never have happened under normal circumstance. Post the session, with an informed mind about the challenge, insights and trends, we produced variety of varied ideas and value proposition to prototype with. Few of them which we believe have the potential to make revolutionary behavioral change around material sustainability are as follows:

OUTDOOR EXERCISE & ACTIVITIES BUILD CONNECTION BETWEEN PEOPLE AND THE ENVIRONMENT PERSONAL SPORT GEARS MANAGE YOUR SPORTSWEAR BY VIRTUAL WARDROBE

ECO-FRIENDLY CLOTHES CARE INSTRUCTIONS SIMPLE GRAPHIC AND TIPS OF CLEANING

MATERIAL CONSUMPTION

A NEW COLLECTION A LIMITED COLLECTION MADE OF SUSTAINABLE MATERIAL

| NIKE + MIT CO-LAB PROPOSAL |

63


NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

64


| NIKE + MIT CO-LAB PROPOSAL |

65


WORKSHOPS PROTOTYPE & TESTING How might we motivate people to reduce material consumption by understanding their own behavior? The Initial Idea We aim to create an add-on app service which can be plug in the existing exercise App such as NIKE+ running which has features as below:

City Journey An outdoor exercise interactive service. This provides running route advice for users about road/ environmental conditions such as traffic, accidents, and weather. Gear wardrobe An online virtual closet for your sports outfits which helps you track how many times you have used them and gives you information about how sustainable the material is and how to take care of it. Infinty Collection A limited collection which are made from sustainable materials and act as an incentive for consumers to keep choosing sustainable material products. NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

66


PAPER PROTOTYPE USER JOURNEY MAP Aware

Join

Use

Develop

Leave

City Journey

POSITIVE

Social Event

NEUTRAL NEGATIVE

Gear Wardrobe

Cleaning Instruction

Pain Point:

Pain Point:

Gain:

Participants do not resonate with the gear wardrobe service we provide. But if the clothes itself can function as a tracker to record and improve their exercise performance, they will use it.

Cleaning Instruction seems redundant to people. Since no matter what it says they will just throw their sportswear into washing machine.

Some of the testers love the City Journey service and advise that we can add “Dress me” feature and GHG reduction during the outdoor exercise session.

| NIKE + MIT CO-LAB PROPOSAL |

67


WORKSHOP INSIGHTS

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

68


Pain Point: Participants do not resonate with the gear wardrobe service we provide. But if the clothes itself can function as a tracker to record and improve their exercise performance, they will use it. Pivot: Instead of sustainable material garment product line, we decided to develop a collection of intelligent sportswear which can track and improve the performance of exercise and health.

Pain Point: Cleaning Instruction seems redundant to people. Since no matter what it says they will just throw their sportswear into washing machine. Pivot: Get rid of cleaning instruction and try to create new feature related to smart garment function under Gear Wardrobe. Gain: Some of the testers love the City Journey service and advise that we can add “Dress me� feature and GHG reduction during the outdoor exercise session.

| NIKE + MIT CO-LAB PROPOSAL |

69


ONLINE QUESTIONNAIRE GOAL The goal of our second iteration is to understand consumer wearable behaviors, beliefs and perceptions by conducting an online questionnaire.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

70


PIVOT Changing the current buyout model, we pivot to subscription business model which can reduce the cost and align the product with latest technology.

| NIKE + MIT CO-LAB PROPOSAL |

71


STREET INTERVIEWS : SUBSCRIPTION BUSINESS MODEL TEST

Location: Crunch Gym Date: 2 May 2016 Time: 10 am - 11 am Interviewees: 11 5 Males / 6 Females Location: Union Square Date: 3 May 2016 Time: 1pm - 3 pm Interviewees: 13 11 Males / 7 Females Location: East Village Date: 6 May 2016 Time: 5 pm - 7 pm Interviewees: 9 12 Males / 8 Females NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

72


Goal of interview To determine the feasibility of a subscription program for an innovative sportswear garment and consumers’ spending habit on sportswear Discussion guide • How much is your average spending on sportswear per month? • Are you receptive to try new and innovative sportswear that would capture all your bio-data through a screen attached to your garment? • How much are you willing to spend per month for such new products? Age Group • • • •

24% of 18 - 25 36% of 25 - 30 31% of 30 - 45 9% of Over 45

| NIKE + MIT CO-LAB PROPOSAL |

73


NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

74


| NIKE + MIT CO-LAB PROPOSAL |

75


NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

76


INTERVIEW INSIGHTS Out of the 33 consumers that we have interviewed, 32 of them would consider to purchase a new sportswear that could help them to record all of their exercising activities. Only one, an older gentleman, refused to buy a new one as he is already “used to� ordinary sportswear. On average, people spend USD 30 a month or USD 350 ~ 400 annually on new sportswear. Therefore, our proposed USD 20 per month subscription fee would be receptive to the general public. The result is across all gender types and age groups. We chose people randomly without prejudice.

| NIKE + MIT CO-LAB PROPOSAL |

77


DIGITAL PROTOTYPE Gear Wardrobe

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

78


City Journey

| NIKE + MIT CO-LAB PROPOSAL |

79


NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

80


| NIKE + MIT CO-LAB PROPOSAL |

81


TREND OF SPORTSWEAR ATH-LEISURE LIFESTYLES KEEPS APPAREL SALES HEALTHY US Market Current Value sales of sportswear increase by 7% in 2015, to reach US$91.1 billion. The Category continues to benefit from the growing “athleisure” and active lifestyle trend. Performance footwear sees the fastest current value growth of 9% of 2015. Nike remains the leading player in sportswear in 2015 with a 22% value share. Sportswear sales are expected to increase in value at a CAGR of 4% at constant 2015 prices over the forecast period. World Asia could be biggest contributor to athletic-wear sales growth

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

82


FASHION COMPANIES EXTEND THEIR PRODUCT LINE TO SPORTSWEAR

Based on the report for the most valuable apparel brand 2015 and the top 10 clothing company in US, we can find more and more fashion companies extend their product line to sportwear products.

| NIKE + MIT CO-LAB PROPOSAL |

83


POPULARITY OF WEARABLES WILL CONTINUE TO MOUNT Athletes will embrace smart clothing “Fitness wearables will generate more than $10 billion in revenue by 2020, up for $3.3 billion in 2015, according to Juniper Research.The "tripling effect will be largely driven by the sales of wrist-based trackers, while hundreds of thousands of connected garments used by professional sports teams showcase wearable technology's most advanced capabilities"

Wearable apps will become more sophisticated — and expensive “Apps from the companies that make activity trackers, as well as compatible third-party software that works with the devices, will become more advanced, and they'll integrate diet and different fitness categories, according to Weston Henderek, director of connected intelligence at The NPD Group.”

Future wearables will be less … wearable It may take more than the duration of 2016, but eventually wearable technologies will give way to implanted tech, according Liz Dickinson, CEO of wearable maker Mio Global. Today's wearables "are a transitional technology, with the ultimate end-goal being complete integration and implantation with and in the human body," she says. "In the future, we'll become ever more connected, and our environment will adjust to our physiological, emotional and physical needs automatically through a new type of system that's embedded in our bodies."

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

84


SPORTSWEAR COMPANIES BUY FITNESS & WEARNESS TECH COMPANY AS AN IMPORTANT STRATEGY Sportswear companies buy Fitness & Wearness Tech company as an important strategy

| NIKE + MIT CO-LAB PROPOSAL |

85


OUR TARGET MARKET

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

86


Nike and the potential clients "Our target customers includes Nike and other sportswear companies. The following chart indicate our potential customers, who are the Top 10 Sportswear Shared Brand in 2015."

| NIKE + MIT CO-LAB PROPOSAL |

87


OUR SOLUTION MiKaSu Inc. is a creative agency offering solutions (product/brand development) for sportswear fashion apparel companies seeking to incorporate wearable technology into their product lines. Infinity Collection is both B2B and B2C business model that aims to create a culture of caring for prolonging lifespan, and recycling of garments.Through a subscriptions service for a new collection of smart garments (in partnership with NIKE and other Athletic brands) connected to a premium App service with incentives for both physical and environmental performance (that plugs into existing wearable communities such as Nike +) to create a trend, culture, and lifestyle of caring. Partner with influencers to inspire people to care about their performance in health, exercise, and environment.

Smart Sportswear Collection Features Short-term: Top & Bottom Long-Term: Bra, headdress, Jacket & Shoes Why our solution is better A revolutionary collection of smart garment aims to improve people's health and exercise performance. How our solution reduces GHG consumption? Notify users GHG reduction from having outdoor exercise. Create awareness, in order to have make a behavior change.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

88


App Service

Hardware & Software Subscription

Features City Journey Gear Wardrobe Social Network

Features Rewards Program Clothing Recycle Service Data Maintenance

Why our solution is better Increase fun of outdoor exercise experience by seamless App service.

Why our solution is better Through a disruptive subscription model to fulfill people's aspiration to enjoy the premier service at a reasonable price.

How our solution reduces GHG consumption? Use the healthier material for clothes, for example, bamboo.

How our solution reduces GHG consumption? Incentive for users engagement in having sustainable behavior and lock users into closed-material-loop service.

| NIKE + MIT CO-LAB PROPOSAL |

89


SWOT FOR NIKE

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

90


THE ADDITIONAL VALUE OF NIKE INFINITY COLLECTION

For the current Nike+ Running, the App provide the basic quantified data, sports, guidance, and value. Our proposal will help Nike to boost into higher level of the four dimensions. • Quantified Self Level: Coarse data to refer over time and see the trend. • Sport Level: Top-level finisher in state/country level non-pro athletics. • Guidance Level: Roll-up number that is easy to digest like an aggregate score. • Value Level: Like having the data as an input to personal process and will pay for it.

| NIKE + MIT CO-LAB PROPOSAL |

91


COMPETITOR ANALYSIS Competitors 

Product & Service 

Technology

Price

Athos​ Works,  Inc   

Real­Time Insights  ­ Show you exactly which muscles are  firing and how much you’re exerting  yourself.  Intelligent Feedback  ­ Muscle Effort  ­ Muscle Activation  ­ Balance  ­ Heart Rate  Scientifically Validated Data  ­ Performing the right exercise, with right  form, at the right intensity. 

EMG sensors  (muscle activity)    Heart Rate  sensors 

Starter Package  Full Body $547  Upper Body $398  Lower Body $348    Gear  Core $199  Shirt $199  Shorts $149 

Enflux Exercise  Clothing 

Real­time coaching on your form  Actionable feedback  Track your workout in 3D    Features  ● Machine washable  ● Advanced fitness tracking  ● Real time results  ● Olympic caliber­coaching for everyone  ● Audio feedback  ● Heart rate monitor  ● 2 Week battery life  ● A fitness wearable you actually wear   

N/A

[Info from Kickstarter]    Enflux Smart Clothing:  Shirt and Pants $399     *Retail Price  *Estimated delivery:  Mar 2017   

Heddoko    

APP Feature  ● Injury profiles   ● Movement precision  ● Movement recording  ● Analysis dashboard  ● Live 3D feedback  ● Movement analysis    Clothing Features  ● Moisture control   ● Full­body data capture  ● Integrated sensors  ● Breathable   ● Washable  ● Durable 

N/A

[Estimated released  date] End 2015, but in  the market yet.    The company hope the  price will be under  $800.   

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

92


OUR EXECUTION Price Plan for Nike+ User 2017 Sales: $250 per suit Subscription: $20 per months per suit.

| NIKE + MIT CO-LAB PROPOSAL |

93


OUR EXECUTION

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

94


| NIKE + MIT CO-LAB PROPOSAL |

95


FEASIBILITY STUDY The feasibility analysis helps us to assess the merit of our business idea, determine whether there is a market for the idea, whether the idea is financially viable, and ultimately, whether or not it is worth investing our time and money into the venture. This study demonstrates the sales projection of MiKasu Inc. for the first 5 years of operations, with basic assumptions and key financial indicators. Also, basic sensibility analysis and breakeven analysis are provided here. The basic assumptions are based on the strategies and the plan of actions, the operative and commercial policies to be developed by the management and its business plan. These assumptions are the base to construct financial projections. Annual number of sales: $180,000 Unit sales price: $250 Unit cost: $50 Sale Profit Share: 10% Monthly subscription cost: $20 Annual sales growth rate for 1st and 2nd year: 10% Annual sales growth rate after 3rd year: 20% Initial paid-in capital: $150,000 The sensibility analysis is realized to find out how the operations would end up if MiKaSu is exposed to a different scenario to

the previously evaluated. For that, the main variables will be modified and the sales projection will be adjusted. To evaluate the sensibility and the model of MiKaSu, it is assumed that an expected slower growth, a reduction of the managed assets per client, an increase in production cost, and a salary increase. We summarize that the main affected variables in the analysis are: Annual sales slows down to 0% growth Costs of materials are up another 10% Salary increase of 5% Short term loan facility is no longer available Under extreme circumstances stated above, our sales projections still show a healthy positive number. With our ultra conservative sales projection of 50,000 units per year (NIKE + running currently has 18 million active users), we have a huge buffer should the overall economy goes into recession. Our breakeven cost is at USD 25 a month versus the USD 30 that we are charging which translates into a 20% profit margin . This is based on our assumption that subscribers will likely to exchange 3 sets of garments annually. We will continue to monitor the consumer behavior as the time progresses and make necessary adjustments accordingly.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

96


SALES PROJECTIONS MiKaSu Inc. Cash Flow Projections Year

2016

2017

2018

2019

2020

150,000

150,000

150,000

150,000

150,000

Beginning Balance Credit/Debt Cash in Sales

4,500,000

4,950,000

5,940,000

7,128,000

8,553,600

Non-operating income

153,000

153,000

153,000

153,000

153,000

Tax rebate

225,000

247,500

297,000

356,400

427,680

Short-term loans

100,000

100,000

100,000

100,000

100,000

Long-term loans

0

0

0

0

0

4,978,000

5,450,500

6,490,000

7,737,400

9,234,280

Cash purchases

900,000

990,000

1,188,000

1,425,600

1,710,720

Suppliers payments

600,000

600,000

600,000

600,000

600,000

Other cost of goods

45,000

49,500

59,400

71,280

85,536

Sub-total: Cash Paid out

Operating expenses General & Administrative Personnel Sales promotion

90,000

99,000

118,800

142,560

171,072

675,000

742,500

891,000

1,069,200

1,283,040 2,566,080

1,350,000

1,485,000

1,782,000

2,138,400

Insurance

45,000

49,500

59,400

71,280

85,536

Transportation

90,000

99,000

118,800

142,560

171,072

Interest Payment

6,000

6,000

6,000

6,000

6,000

Capital Investments

675,000

742,500

891,000

1,069,200

1,283,040

Office equipment

450,000

495,000

594,000

712,800

855,360

Furniture & fixtures

225,000

247,500

297,000

356,400

427,680

5,151,000

5,605,500

6,605,400

7,805,280

9,245,136

-23,000

-5,000

34,600

82,120

139,144

Sub-total: End Balance Credit/Debt

| NIKE + MIT CO-LAB PROPOSAL |

97


NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

98


| NIKE + MIT CO-LAB PROPOSAL |

99


CONCLUSION SUSTAINABLE

BEHAVIOR

CAN

MAKE US BE A BETTER/SMART PERSON, IT'S NOT ONLY A MORAL RESPONSIBILITY

Smart clothing design requires a team of artists, designers, scientists and engineers bringing their individual talents together to create garments that are as appealing as they are functional. At MiKaSu, we are connecting the dots to make affordable revolutionary sportswear through innovative platform to make exercise more enjoyable. As a result, we not only stimulate and promote healthy lifestyles, we were able to close the manufacturing loop to form a circular economy.

Sportswear market has been developed and advanced to a point where the collaboration between designers and scientists could bring about incredible innovations that could alter a person’s life, prolong life, prevent harm and accidental death. In our case, a fully solar-powered and recycled garment could provide all the benefits of an ordinary garment plus safety features like emergency call out and location services. Having a smart garment is no longer only a fashionable way of living, it becomes a necessity for every individual.

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

100


The four major stakeholder groups that can influence change in this sector are consumers, government, business and media. Rather than trying to provide a course of actions for each group, we propose here a set of actions which would support a move towards the ideal consumer behavior: • Consumer education is vital – to ensure that fact based information on the individual impacts of a product are made clearly available and then to support consumer understanding of the consequences of this information. • Legislation could be used to outlaw specific undesirable components – such as particular toxic chemicals, but this would be difficult to impose on imports due to the complex range of chemicals involved • New business models with growth in profit inversely related to the increased use of material are possible where consumers pay for services – such as repair, other maintenance services, remanufacturing or ‘fashion upgrades’.

‘Closed-loop’ business models in which retailers take back end of life clothing, for instance, could promote reclamation and so reduce demand for new materials • Through various media outlets promote environmental and social responsibility in supplier countries, while fairly acknowledging the economic consequences of imposing improved behavior on otherwise cheap suppliers

| NIKE + MIT CO-LAB PROPOSAL |

101


The key to change remains the behavior of the consumers so the role of educators and campaigners in raising awareness of the consequences of consumer choices is central to drive the change. Expect to see plenty of innovation in the textile and fashion industries in the next few years-- thanks to advancements in bioengineering, nanotechnology and 3D printing techniques. Biotechnology has the potential to make textile manufacturing cheaper, with less of an impact on the environment.

their in-house or local small-scale production facilities. This is, indeed, the strength of MiKaSu where we provide a “one-stop shopping” solution to connect the manufacturer to the vast consumers globally. Finally, wearable success requires similar business “ecosystems” – offering open (but not always unlimited) access for app developers and makers of other smart devices (including other wearables) to encourage mass connections and uses. Products which connect easily and seamlessly to other useful devices, combining to make users’ lives better, easier, healthier or more fun, are more likely to be successful than those which adopt proprietary or closed systems and offer limited uses. Those requiring their own chargers, connectors and cloud services may struggle to gain mass acceptance. Finding and developing collaborative ecosystems and learning to work with such divergent industrial partners is challenging, but the proliferation of wearable technology and smart fabric conferences, events and online communities are all making it easier to locate and understand new partners and what they can offer.

To become successful in smart garment industry involves working in new, unfamiliar areas: electronics, software and even new ways of selling (in MikaSu’s case - subscription service). Bringing textile, clothing, electronics hardware and software expertise under one roof is one strategy that has proved successful, but also represents a high-risk and high-cost option, especially if you select the wrong partner. It also often tackles only the creative solution–not the supply chain problem. Hence, many successful startups still struggle to grow because of the lack of manufacturing support when they are ready to transition from

NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

102


| NIKE + MIT CO-LAB PROPOSAL |

103


NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

104


THIS PAPER WAS MADE POSSIBLE BY THE HARD WORKS DEVOTED FROM EACH AND EVERYONE OF YOU IN THE INTEGRATIVE STUDIO CLASS. SPECIAL THANKS TO RON GONAN AND OTHERS WHOM WE HAVE INTERVIEWED TO SELFLESSLY SHARE THEIR INSIGHTS AND EXPERIENCES. LAST BUT NOT LEAST, WE WOULD LIKE TO THANK RHEA FOR HER DEDICATIONS AND RELENTLESS PURSUIT OF PERFECTION THROUGH OUT THE SEMESTER TO GUIDE US THROUGH TILL THE END. WE LOVE YOU ALL - MIKASU

| NIKE + MIT CO-LAB PROPOSAL |

105


NIKE + MIT CO-LAB CHALLENGE | PARSONS THE NEW SCHOOL OF DESIGN | MS. SD&M

106


BOOKS LOUISE VALENTINE, PROTOTYPE - DESIGN AND CRAFT IN THE 21ST CENTURY ANDREW POLAINE, LAVRANS LØVLIE, AND BEN REASON, SERVICE DESIGN: FROM INSIGHT TO IMPLEMENTATION MARC STICKDORN AND JAKOB SCHNEIDER, THIS IS SERVICE DESIGN THINKING JENNIFER VISOCKY O'GRADY AND KEN O'GRADY, A DESIGNER'S RESEARCH MANUAL, WILLIAM LIDWELL AND KRITINA HOLDEN, UNIVERSAL PRINCIPLES OF DESIGN WEBSITE About Ron Gonon http://www8.gsb.columbia.edu/cbs-directory/detail/rg2127 Sportswear in the US (MAR 2016), Euromonitor International Athletic Lifestyles Keep Apparel Sell Healthy (OCT, 2015). Morgan Stantly, Retreived from http://www. morganstanley.com/ideas/global-athletic-wear-geared-for-growth Apparel 10 2015: The Most Valuable Apparel Brand of 2015, BrandFinance. Retrieved from http:// brandirectory.com/league_tables/table/apparel-2015 Hayley Fitzpatrick, The Top Ten Clothing Company in America (JUL, 2015), Business Insider. Retrieved from http://www.businessinsider.com/the-10-biggest-apparel-companies-in-the-us-2015-7 James A. Martin,13 Wearable Tech Trend to Watch in 2016 (DEC, 2015), CIO.com. Retrieved from http:// www.cio.com/article/3017995/wearable-technology/13-wearable-tech-trends-to-watch-in-2016.html Aldrin Calimlim, Popular Fitness APP Runkeeper Acquired by Sportswear Company Asics ( Feb 2016), Retrived from http://appadvice.com/appnn/2016/02/popular-fitness-app-runkeeper-acquiredby-sportswear-company-asics New Balance Launches Technology Division Dedicated To Improving Athlete Performance (Jan 2016), Retrieved from http://newbalance.newsmarket.com/LATEST-NEWS/new-balance-launchestechnology-division-dedicated-to-improving-athlete-performance/s/9C08A31D-5601-4C73-A584A8DD476C2910 Mark Gurman, Nike CEO Discusses Future of Apple Partnership, Existing Wearables, & Apple Watch (MAY 2015) . Retrived from http://9to5mac.com/2015/05/08/nike-ceo-discusses-future-of-applepartnership-apple-watch-exiting-wearables-video/ Flurry Analytics, An Update to Retention (MAR 2014), Retrived from http://www.flurry.com/updates/ bid/109748/Flurry-Analytics-An-Update-to-Retention#.Vy0InhUrKRs

| NIKE + MIT CO-LAB PROPOSAL |

107

Profile for Mika Chang

Portfolio 1: MIT CoLab Challenge Proposal  

This is my Studio 1 project which we collaborated with NIKE aiming to tackle the MIT CoLab challenge to find out a sustainable material solu...

Portfolio 1: MIT CoLab Challenge Proposal  

This is my Studio 1 project which we collaborated with NIKE aiming to tackle the MIT CoLab challenge to find out a sustainable material solu...

Profile for mikachang
Advertisement

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded