Juicy Couture Brand Report

Brand Report 2021

FIG 1 . Juicy Couture logo From: wearetenzing.com

Brand Report: Juicy Couture Nicole kozlov n0778628 FASH30014 JO O'ROURKE Word counT: 4329

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Contents

3 customer profile 4 Introduction 5 a brief history 9 the brand today 16 proposed business opportunity 17 a social shopping experience 25 the current product range 31 juicy couture x depop 37 conclusion 39 bibliography, references 41 illustrations 42 2appendices

Customer Profile Gender: Female Age: 15 -30 (Late Millennials, Early Generation Z) Location: Global Income: Zero / Low Income Occupation: Student, Just started career Hobbies: Social media, fashion

"urban uniform for first class and coach class" (Skaist-Levy, Nash-Taylor, Booth 2014)

FIG 2 . In Defence of Juicy Couture’s Velour Tracksuit, From: Varsity.co.uk OWN CUSTOMER PROFILE

Introduction Juicy Couture is a middle market, womenswear brand that has been around for 25 years. The brand sits in the highly competitive, exponentially growing athleisure market which is dominating the fashion industry, registering a compound annual growth rate (CAGR) of 6.7% from 2019 to 2026 (Business Wire 2020).

The brand report will study the background of the brand and how it is operating currently; analysing the effects of the macro and microenvironment. To investigate the brand in further detail the report will also discuss the brand’s products, price points, how it promotes itself, where product is distributed and sold, and it will also consider the Juicy Couture consumer. The research undertaken will help to identify an opportunity for Juicy Couture, which will be underpinned by primary and secondary research.

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A Brief History the 25 year journey of juicy couture

Juicy Couture was established in 1995 by founders Pamela Skaist-Levy and Gela Nash-Taylor, who transformed and developed the brand with just $200, from a maternity line into an iconic, fashionable athleisure brand (Kim, Cameron 2020). Over the past 25 years the brand’s success has fluctuated, initially it caught traction in the early 2000s with the aid of promotion from iconic celebrities of the time. Juicy Couture received endorsement from icons such as Paris Hilton, Britney Spears and J-Lo, who at the time were large fashion influences for the typical Juicy Couture consumer (see FIG 2). In order to push promotion, Juicy Couture were the first brand to innovatively ‘gift’ these celebrity icons their products, specifically the velour Juicy tracksuits. These celebrities would be pictured wearing them, with the aim to ultimately increase the brands popularity and increase sales. These celebrities would now be labelled ‘influencers’, and many brands now adopt this method of promotion to market their own brand. This type of marketing was how Juicy Couture engaged their consumer of the time, who were the Millennial generation and essentially the brand’s “core, legacy customer” (Taylor 2020).

Juicy Couture’s success meant they were able to distribute their products to upscale department stores such as Saks on Fifth avenue, therefore reaching more consumers. Juicy Couture continued to expand, in 2003 the company was sold to fashion designer Liz Claiborne for $226million (Kim 2019) and in 2004 they opened their first brick-andmortar store in Caesar’s Palace, Las Vegas (Brannigan 2020). The brand’s growth meant that net sales doubled from 2006 to 2007 and by 2008 there were 100 Juicy Couture stores globally and total net sales of $605million (Kim 2019). The brand expanded their product range to fragrance and jewellery as their success peaked.

FIG 3. Juicy Couture Is Back! 10 Superfans On Why They Can’t Quit the Tracksuit, From: vogue.com

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The 2008 recession changed consumer priorities, consumers could no longer afford the premium Juicy Couture prices and the brand’s aesthetic did not connect to the fashion trends of the time. This led to sales falling 11% year-over-year in 2009 and eventually the original founders, SkaistLevy and Nash-Taylor left the company as they agreed that “Juicy was no longer our vision” (Skaist-Levy, Gela-Taylor, Booth 2020). In 2013 Juicy Couture changed hands and was sold onto Authentic Brands Group (ABG) for $195 million (Kim 2019). ABG eventually went on to close down all flagship stores in 2014 as the brand’s success still dwindled.

However, in 2016 Juicy Couture made their return to the fashion market, collaborating with Vetements, debuting their Spring 2017 collection in Galaries Lafayette, Paris (see FIG 4). The collection reignited interest in the brand and reengaged Juicy Couture consumers. The following year Juicy Couture acquired a new creative director, James Mizrahi. With the help of promotion by the original Juicy Couture figurehead, Paris Hilton, they debuted a new collection with a product range priced from $30 to $400. The collection was available for consumers to purchase from the Juicy Couture website or at Nordstrom or Bloomingdales (Kim 2019). From this, Juicy Couture were able to reach a wider market and regain recognition. Since collaborating with Vetements in 2017, Juicy Couture went on to collaborate with Urban Outfitters to create exclusive, wearable collections ranging from $39 to $199, taking inspiration from current trends in order to remain contemporary (Fashion Network 2017).

The collaboration has enabled Juicy Couture to expand their audience and regain popularity. To further grow their market Juicy Couture launched their first runway collection in 2018, the collection debuted a wide product range including outerwear, dresses and luxury Juicy Couture tracksuits (see FIG 5). Juicy Couture’s success still remains prevalent. In 2020 the athleisure market dominated the fashion industry, accounting for 40% of all online sales for that year (Marci 2021). The increased demand for athleisure, combined with the ‘Y2K’ (the year 2000) trend craze has resulted in Juicy Couture’s increasing success during 2020.

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FIG 5. Juicy Couture Fall Ready-to-wear 2018, From: Vogue.com

FIG 4. Vetements X Juicy Couture velour maxi dress, From: matchesfashion.com

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The Brand Today juicy couture in the current market

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-Very distinguished, iconic and world-renowned brand -Distinctive aesthetic, fitting with the current Y2K trend -Promoted by very iconic, well known celebrities -Expansion into jewellery and fragrance -High quality products -Millennial and Generation Z consumers - have the largest online presence, helps to promote Juicy through online and social media -25th Anniversary Collection -Collaborations with brands -Sells through multiple retail sites -High demand for loungewear due to the pandemic

-High-end, luxury prices means the brand is less accessible to their Generation Z consumer, some are students on low or zero incomes -Small range of apparel, known only for its velour tracksuits -Inconsistent success throughout its 25 years, decrease in revenue -Reliant on promotion and trends -Small target audience -Specific style, little evolution of the style of the 25 years -All brick-and-mortar stores have been closed since 2014 -No collaboration between different retail sites -Poor online presence compared to competitors

S W O

-Omnichannel brand, collaborating with sites such as Depop -Larger price range, cheaper range to compete with fast-fashion athleisure market -Growth of athleisure market, especially during the Covid-19 pandemic -Expand demographic, increase loyalty of the original millennial consumer -More atmospheric, multisensory, immersive online experience

FIG 6. Juicy Couture SWOT, Own model, (2021)

T -Athleisure brands are highly competitive -Fast fashion brands that are selling the iconic velour tracksuit at more affordable prices -Y2K trend losing traction -Post-pandemic could mean a reduced demand for loungewear -Lower incomes due to the pandemic -Resale sites, consumers wanting to buy secondhand for financial and sustainable purposes

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The SWOT (see FIG 6) identifies the brand’s strengths in addition to its weaknesses, threats and opportunities. The brand has a very distinctive, ‘Y2K’ aesthetic. This is what they are renowned for and how consumers distinguish them from other athleisure brands, therefore giving them prominence in the current market where the ‘Y2K’ trend is dominating (Delong 2020). Much like in their peak during the early 2000s, Juicy Couture is still receiving promotion from current celebrities and icons who now have social media platforms to market their products. The Juicy Couture consumer is typically a Millennial or Generation Z (see FIG 2) who have the largest online presence compared to previous generations, as a result promotion through social media will reengage the Juicy Couture consumer. The SWOT (see FIG 6) also identifies that Juicy has collaborated with other brands like Urban Outfitters (see FIG 8), in conjunction with selling different ranges through retailers such as JD Sport and ASOS, therefore enabling them to reach more consumers.

Undoubtedly, Juicy Couture owes its strengths to its athleisure brand status; there is high demand for athleisure currently due to the Covid-19 pandemic, as a result Juicy Couture has experienced an increase in sales throughout 2020. The graph (see FIG 7) demonstrates how Juicy Couture’s revenue decreased to $14.8 million in the last quarter of 2019 (’19 - Q4), however between the first quarter (’20 – Q1) and third quarter of 2020 (’20 – Q3) revenue increased to approximately $14.95 million, as the pandemic took over and consumer’s began to buy more loungewear.

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FIG 7. Juicy Couture Revenue, From: zoominfo.com

FIG 8. Juicy Couture UO Collection, From: urbanoutfitters.com

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The inconsistent success over Juicy Couture’s 25 years suggests that the brand could experience another decline in the future, they are heavily reliant upon promotion and trends as suggested in the SWOT (see FIG 6). It is likely that the ‘Y2K’ trend will lose traction, therefore posing a threat to Juicy Couture’s recent success. Juicy Couture has a specific style and has demonstrated little brand and style evolution over the last three decades, which has been a big factor for their inconsistency in the market. In addition, the high-end, premium price range is not fitting to the Juicy Couture consumer (see FIG 2), who is a Millennial or Gen Z usually with low or no income, as a result less consumers buy Juicy Couture. A notable weakness of Juicy Couture is their poor online presence. The perceptual map (see FIG 9) identifies that despite being a middlemarket brand they have a weak online presence, unlike their competitor Adidas who uses atmospheric marketing on their website to create an interactive and immersive online shopping experience to engage the customer and increase customer loyalty. “Atmosphere has become an important factor in customer satisfaction, in revenue-increasing efforts and in maintaining market share” (Emir 2016), this suggests the importance of atmospheric marketing for Juicy Couture to remain competitive.

Competitors, such as fast fashion brand Pretty Little Thing have a large loungewear ‘Stay At Home’ range (Pretty Little Thing 2020) combined with a very strong online presence and significantly lower price points, they are a huge threat to Juicy Couture who share a very similar consumer.

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STRONG ONLINE PRESENCE

FAST FASHION

LUXURY

WEAK online presence FIG 9. Perceptual Map, Own model (2021)

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To remain consistently successful in the industry, the brand needs to change their marketing strategy, have a stronger online presence and ensure that they stay current. The SWOT (FIG 6) lists Juicy Couture’s potential opportunities to help expand their demographic and hopefully reengage their original Millennial consumer. If Juicy Couture were to strengthen their online presence by creating a more atmospheric, immersive and multisensory online experience, like that of their competitors Adidas and Pretty Little Thing, they will attract more consumers. According to a journal discussing the relationship between service atmosphere and customer loyalty it states that “Customer loyalty matters not only in creating loyal customers but also in gaining sustainable competitive advantage.” (Emir 2016). This demonstrates that for Juicy Couture to ensure customer loyalty they need to offer an engaging, competitive online experience.

Juicy Couture products are distributed through many online retail sites, which is a strength as suggested in the SWOT (see FIG 6). Each retailer sells a different product range and at different price points. For Juicy Couture to maximise sales, they should create an omnichannel shopping experience whereby these retail sites work cohesively and collaboratively so that the Juicy Couture customer is able to access all product ranges easily. Not only will this increase engagement, but it will also help to increase customer loyalty, as companies exercising an omnichannel strategy have reported an average of 89% customer retention (Saleh 2020). This will help to ensure that Juicy Couture remains a favourable brand and avoid another downturn.

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Proposed Business Opportunity A business opportunity for Juicy Couture that embodies and takes advantage of these opportunities is a collaboration with the social shopping, resale app Depop: Juicy Couture X Depop.

The collaboration will offer a larger, more affordable product range that can be purchased directly from the Depop app, all in one place. The collaboration will sell vintage or secondhand Juicy Couture along with a more affordable, seasonal range that is designed specifically for Depop. The affordable range will also be inspired by trends on Depop in order to remain current. The lower price points and promotion through Depop will ensure that Juicy Couture expand their demographic. The e-commerce process and Depop's Instagram-style format will be very simple to navigate and will engage the typical Juicy Couture customer, who is very influenced by social media (see FIG 2).

Juicy Couture X Depop 16

FIG 10. Proposed collaboration logo, Own design (2021)

A Social Shopping Experience

"Now, more than ever, consumers' buying behaviour is influenced by what they consume through social media" (Gavril 2015) 17

90% of users

Under 26 Years old

27% yes 73% NO does Juicy COuture Have a strong online presence?

FIG 11, 12 . Infograpics, Own graphics (2021)

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90% of Depop’s 15 million users are younger than 26 years old (Schneier 2019), similar to that of Juicy Couture consumers who are either Millennials or Generation Z(see FIG 2). These two generations dominate the e-commerce sector, with data suggesting a 33% increase in the online spending of Millennial and Gen Z consumers (Ruvo 2020). The PESTLE (see FIG 13), suggests how the Covid-19 pandemic has affected consumer behaviour, the pandemic has altered the wider macro environment and resulted in the closure of brick-and-mortar stores, consumers have become reliant on e-commerce. Despite the brand already experiencing store closures in 2014, consumers have been able to purchase Juicy Couture through other retailers. However now consumers are dependent on online retail, either purchasing Juicy Couture from retail websites such as Urban Outfitters, Depop or directly from the Juicy Couture website. To retain customers and be competitive in the market it is imperative for Juicy Couture to have an engaging online shopping experience which is easy for consumers to use, however as identified in the SWOT (see FIG 6) and where the brand sits among its competitors (see FIG 9), Juicy Couture possesses a weak and ineffective online presence. Furthermore, 73% of Millennial and Generation Z consumers believe Juicy Couture does not have a strong online presence (see Appendix 1). Almost three quarters of respondents believed that the brand has a weak online presence, this was proven when only 7% said that they were aware that Juicy Couture celebrated their 25th Anniversary in 2020, in which the brand produced an exclusive 25th Anniversary Collection (see Appendix 2). This demonstrates that Juicy Couture’s online presence and how they digitally market themselves is not affective as many consumers are unaware of new collections and brand messages. “Now, more than ever, consumers’ buying behaviour is influenced by what they consume through social media” (Gavril 2015), consumers are often influenced to buy from a brand that markets itself in an engaging and appealing way to the target audience and so a strong online presence will ensure the brand reaches a wider audience.

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Brexit: Export tariffs for the UK to the EU will increase the price of distribution.

Sweden’s chemical tax on clothes, the EAC wrote a report suggesting the UK should replicate this. (Parmar 2020) America’s presidential election, change in power means changes in agreements and tariffs.

Consumers globally are in a worse economic situation than they were a year ago due to job loss and reduce pay during the Covid-19 pandemic.

Global economy is declining.

Job losses mean lower income.

Pandemic means more people staying at home.

People unable to travel due to lockdowns in response to the pandemic.

Shifting demographic.

More people are working remotely.

Increased demand for ‘Y2K’ trend.

Consumers becoming more health conscious.

Consumers relying on online retail due to shop closures in the pandemic.

More demand for an immersive online experience.

During the pandemic country borders were ordered to shut by law, disrupting the supply chain and distribution.

Environmental laws regarding the manufacturing of products.

Adverse weather conditions disrupting distribution, specifically throughout the winter months.

Consumer’s have become more environmentally concious. (Granskog, A. et al. 2020)

FIG 13. PESTLE, Own model (2021)

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Juicy Couture competitors like Adidas and Gucci have very engaging, atmospheric e-commerce experiences which appeal to Millennial and Gen Z consumers, whereas Juicy Couture has a very weak, non-interactive online presence despite selling through multiple retail channels. If they were to collaborate with and sell a variety of products through Depop it will create a more immersive, interactive and consumer-appropriate online shopping experience, ultimately making Juicy Couture more competitive in the market. Depop offers a ‘social shopping’ experience (Beney 2019) with an Instagram-style format. Buyers and sellers are able to use hashtags, likes, follow one another, comment and direct message in the process (see FIG). This Instagram method of shopping is appealing to the Juicy Couture consumer, specifically Gen Z who are the most prolific Instagram users with 73% actively using the social media platform (Marketing Charts 2019). As Depop’s format is very alike, it means it will engage the typical Juicy Couture Gen Z consumer. Depop is described as “a buy-and-sell space that’s far more fun than sitting at home alone on your computer waiting to snap up something from eBay … The communication style of the app also resonates with the “authenticity-first mindset of the digital generation”. The Juicy Couture customer (see FIG 2) is consumed by social media and as result is very influenced by a technologically advanced way of shopping.

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22

FIG 14,15,16, 17. Depop app, From: Depop (2021)

"Atmosphere has become an important factor in customer satisfaction, in revenue-increasing efforts and in maintaining market share" (Emir 2016)

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Depop’s demographic is larger than that of Juicy Couture’s due to its vast range of brands and retailers who are selling on trend products and styles, therefore for Juicy Couture to be promoted and sold through Depop will mean the brand will have a larger reach and attain more consumers. Not only will the more marketable and useable Depop shopping experience encourage more consumers to buy Juicy Couture, but it will also increase customer loyalty; “Atmosphere has become an important factor in customer satisfaction, in revenue-increasing efforts and in maintaining market share” (Emir 2016). Juicy Couture selling through Depop, a platform that has an appropriate ‘atmosphere’ for its consumer, will improve customer satisfaction and loyalty, as a result ensuring that Juicy Couture does not experience another decline in the market.

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The Current Product Range

90% no DO you think JUICY COUTURE HAVE A BROAD Product range?

10% yes FIG 19. Infographic, Own graphic (2021)

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FIG 18. JUICY COUTURE MAKES IT TO ACTUAL COUTURE WEEK THANKS TO VETEMENTS,, From: fashionista.com (2016)

Juicy Couture is renowned for its velour tracksuits that became iconic in the early 2000s, these distinctive tracksuits were the driver for Juicy Couture’s initial success. However, the brand initially started selling ‘flattering’ V-neck t-shirts (Kim 2020), before venturing into fashionable loungewear. As the brand grew the addition of accessories and fragrance developed the product range. Despite extending the product line, currently 90% of Millennial and Gen Z consumers believe that Juicy Couture does not have a broad product range (see Appendix 3).

Furthermore, when asked why they thought the brand was popular some respondents thought Juicy Couture’s popularity is due to the infamous velour tracksuits (see Appendix 4). This supports the notion that Juicy Couture is known for its tracksuits and as a result this notoriety interferes with the consumer’s interest in purchasing other products from the brand.

It is evident that Juicy Couture’s reputation and success has been reliant on the demand for the tracksuit. While it recuperated from its decline and produced a new, more versatile Spring 2017 collection with Vetements, it still “banked on the same blinged-out sensibilities that tracksuits epitomized a decade prior” (Brannigan 2020), therefore the collection included a range of premium tracksuits alongside other pieces so that Juicy Couture could regain recognition (see FIG 19).

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Juicy Couture sells predominantly loungewear, its recent success is not only due to consumers’ interests in the ‘Y2K’ trend that Juicy Couture embodies, but also the demand for loungewear. The PESTLE (see FIG 13) suggests how the global social situation has shifted during the pandemic; more consumers have been unable to go out, socialise and work, as a result spending more time at home. This has resulted in the decrease in sales of occasion wear and workwear, however the need for athleisure has grown exponentially with loungewear sales increasing by 433% in the UK since the beginning of the pandemic (Gilliland 2020). Consumer behaviour has shifted, and the pandemic has encouraged society to become more health conscious as stated in the PESTLE (see FIG 13). Business Wire reported that daily exercise minutes have increased by 43% during the pandemic (Jones 2020), therefore more consumers are investing in athleisure than before the pandemic. Although Juicy Couture’s success is partly owed to the shift in consumer behaviour during the pandemic, the brand needs to retain this success after the pandemic as the macro and microenvironment will be constantly changing. Consequently, Juicy Couture needs to broaden its current product range to align with and anticipate shifts in consumer sentiment and behaviour (Baum, et al. 2020).

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Juicy Couture’s products are distributed through various retailers online and offline. These include collaborative brands such as Urban Outfitters, retailers like ASOS and JD Sport, department stores such as John Lewis or resale and outlet places like Tk Maxx, Depop and Bicester Village. Every single retailer offers a different, limited product range at different price points, therefore it is difficult for the consumer to find all Juicy Couture products without shopping on numerous sites. The Juicy Couture website sells the newest and most premium collections. Currently this includes their ‘25th Anniversary Collection’ ranging from $59 - $159 per item and their ‘New Arrivals’, both only offer tracksuits and a few tops.

Furthermore, the website also sells a small range of luggage, however it still maintains a limited product range at premium prices. Alternatively, cheaper products are sold directly through the Juicy Couture outlet website or through retailers such as Tk Maxx or brick-and-mortar outlet stores like Bicester Village, located in the UK. Each outlet retailer will sell whatever deadstock they have received, to then sell at a lower price.

Deadstock is often last season products that have been unable to sell and as a result the product range on offer includes a mix of collections and products. Although outlets may sell a larger range it is still difficult to find specific items and every outlet retailer will have different stock.

ASOS offers 109 Juicy Couture products and predominantly sells Juicy Couture swimwear, lingerie and accessories with the average swimsuit costing £70. They only sell one tracksuit, one puffer coat and some t-shirts, unlike JD Sport which only features twelve Juicy Couture products on the site, offering a small range of only tracksuits and tops.

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Juicy Couture tracksuit prices vary throughout different retailers (see FIG 20). The highest costing tracksuits are the newest edition ones that are offered on the Juicy Couture website, averaging £110 for the zip hoodies and £73 for the bottoms. The Juicy Couture outlet still has a high price range for its tracksuits; averaging £84 for the zip hoodie and £50 for the bottoms. Juicy Couture’s collection with Urban Outfitters is cheaper than Juicy Couture’s own collections, the collaboration averages £70 for the hoodies and £65 for the bottoms, despite offering very similar tracksuits. Juicy Couture tracksuits that are sold on Depop are often secondhand or vintage and sold by independent sellers, these range at almost full price, averaging £90 for a hoodie and £70 for the bottoms. The higher Depop prices are due to the demand for rare, vintage Juicy Couture which is unique to Depop. In addition, consumers who are buying into the ‘Y2K’ trend are turning to Depop, as a result sellers are taking advantage of the increase in traffic to the site and the demand for Juicy Couture products, ultimately driving their prices up. For Juicy Couture to increase customer loyalty and remain consistent in the market they need to sell a broader range in one place. A collaboration with Depop will enable more Juicy Couture products and ranges to be sold directly through Depop and ensure that more consumers have access to these products, not only will this increase sales but also help to overcome the perception that Juicy Couture sells a limited product range.

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Average tracksuit prices through different retail sites £120 £84

£70

£90

£73

£100 £50

£65

£70

JuicyCouture.com

JuicyCouture.co.uk Outlet

URBAN OUTFITTERS

DEPOP

£110

FIG 20. Infographic, Own graphic (2021)

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Juicy Couture X Depop What will the collaboration offer?

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The pandemic has put consumers in a worse economic position than before (see FIG 13). The PESTLE explains that the pandemic has increased rates of unemployment with places like the UK seeing a 5% rise in unemployment across all working-age groups (King 2021) Furthermore, many people who are unable to work are relying on government schemes such as the furlough scheme in the UK which only pays 80% of an employee’s salary (Gov.UK 2021). The economic decline has meant that consumers are now more money conscious and in some cases unable to afford additional luxuries, consequently less consumers are able to afford the premium prices of Juicy Couture products. Part of Juicy Couture’s collaboration with Depop will be to create separate ranges, not just to expand the product range but to also make them more accessible to a wider market.

One proposed range will be a new collection exclusive to Depop, retailed at a lower price point than Juicy Couture’s own premium collections. This means Juicy Couture can price match lower market competitors such as Iets Frans and Adidas (see FIG 9, perceptual map) who offer products at more affordable prices. The Juicy Couture X Depop collection will offer tracksuits at half the price of Juicy Couture’s premium tracksuits (see FIG 20), along with a range of other products at lower prices.

This will encourage consumers to purchase Juicy Couture products, who aren’t in the economic position to purchase their more premium items.

Furthermore, the lower price points will entice more of Juicy Couture’s target market who are Millennials and Gen Z who have little or no income (see FIG 2), with 71% of Millennial and Gen Z consumers believing that the brand’s current price points aren’t justified (see Appendix 5). As a result a lower cost range should change this perception and expand Juicy Couture’s consumer. The broader range will be designed to align with current Depop trends and have a more commercial aesthetic. Like the Depop X Vans collection 2020 (Ferere 2020), the Juicy Couture X Depop collaboration will be designed by Generation Z consumers to ensure that the range is current and appropriate for Juicy Couture’s customer who is mostly Gen Z, this will increase Juicy Couture’s reach as the designs will resonate with more consumers. Furthermore, releasing a Juicy Couture X Depop collection for each season means Juicy Couture will remain current and in demand, which will help Juicy Couture to maintain their popularity and avoid another decline in their success.

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71%

agree price points are unjustified

55% would purchase secondhand juicy couture FIG 21, 22. Infographics, Own graphics (2021)

33

The PESTLE (see FIG 13) also explains how consumer sentiment towards sustainability has changed since the start of the pandemic, consumers are becoming more sustainably conscious; “57 percent have made significant changes to their lifestyles to lessen their environmental impact” (Granskog, et al. 2020). This suggests that consumers will be making more sustainable fashion choices. Furthermore “67 percent consider the use of sustainable materials to be an important purchasing factor, and 63 percent consider a brand’s promotion of sustainability in the same way.” (Granskog, et al. 2020). Juicy Couture collaborating with Depop means the brand can take advantage of consumers’ increased interest in purchasing sustainable products. Depop has a sustainable reputation due to it being a resale site, therefore part of the collaboration would involve a secondhand line which encourages consumers to send preloved Juicy Couture products to Depop, which Depop in return would pay a small cost towards. The secondhand line would be retailed at a considerably lower price than the exclusive Juicy Couture X Depop collection, therefore attracting more consumers and enabling them to shop more sustainably. 55% of consumers said they would purchase secondhand Juicy Couture (see Appendix 6), highlighting the demand for a secondhand Juicy Couture range. Depop is traditionally a resale app, therefore a secondhand Juicy Couture line will gain a lot of traction as consumers would usually turn to Depop to source secondhand apparel.

The line will also sell a broad range of vintage Juicy Couture. Vintage products are always in high demand, they’re often less expensive than new items, or considered investment pieces; “as enduring emblems of another time, and as items that can still be used now and into the future, vintage pieces are imbued with a sense of intertemporal interconnection. These items retain value and meaning despite (and often because of) having come from an era that has passed, creating a symbolic connection across time.” (Sarial-Abi 2016). For Juicy Couture and Depop to source vintage items and sell them in one place will appeal to the consumer as they will be able to buy vintage Juicy Couture more easily than buying from independent sellers who often sell vintage at very high prices. The collaboration will make vintage shopping easier and more accessible.

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As a resale platform, Depop often sells brand’s excess inventory. As a result, this will benefit Juicy Couture’s supply chain as it means the brand is able to move product efficiently and not be left with any deadstock.

“They include quietly shipping products to resale platforms, striking deals with marketplaces that don’t require big inventory orders and linking with one of the new platforms that have cropped up with the sole intention of making use of the unsold inventory.” (Parisi 2020). As a result Juicy Couture will be able to have more places to store extra product, with Depop being UK based and its HQ in London, it means that Juicy Couture could store their collaboration stock in warehouses or offices in the UK, therefore distribution of product to Europe will be more efficient as the UK is closer than locations such as Asia or America. Furthermore, consumer traffic to Depop has increased exponentially over the last decade with Depop seeing a 130% US revenue growth in 2017 (Whightman-Stone 2018), this figure shows that Depop is a massive distributor, as a result Juicy Couture will be able to sell large amounts of product through Depop.

35

depop hq located in london, uk

JUICY COUTure hq located in pacoima, ca, usa

36

FIG 23, 24. Infographics, Own graphics (2021)

Conclusion

37

The business opportunity proposed combats Juicy Couture’s weaknesses, avoids potential threats and encompasses the brand’s opportunities to ensure consistent success and brand longevity. Currently 53% of Millennial and Generation Z consumer’s believe Juicy Couture does not have longevity in the market (see Appendix 7), however 77% believe that a collaboration with Depop to sell a broader range and improve the e-commerce experience will boost Juicy Couture’s popularity and benefit the brand (see Appendix 8), ultimately ensuring Juicy Couture’s longevity in the market. The report identifies that Juicy Couture has a weak online presence that does not provide consumers with an engaging, immersive e-commerce experience, this can decrease the brand’s reach and customer loyalty. The report also suggests that Juicy Couture does not have a broad product range that consumers can shop for in one place. The business opportunity proposed in the report, which involves Juicy Couture collaborating with Depop, will create an engaging, interactive shopping experience which appeals to Juicy Couture’s consumer and will attract a wider audience. This combined with a broad product range, including a more commercial low-cost range and a vintage and secondhand line will attract more consumers, therefore expanding Juicy Couture’s market. Consequently, this collaboration and business opportunity will benefit both brands: not only will it maintain Juicy Couture’s success in the market, but it will also bring more consumers to Depop along with additional profits for the resale site.

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illustrations FIG 1: Juicy Couture logo (2021), From: wearetenzing.com, Available at: https://wearetenzing.com/brand-partnership-2/juicy-couturelogo/ [Accessed 16/01/2021] FIG 2: Hayes, E., (2017), In Defense of Juicy Couture’s Velour Tracksuit [online], From: varsity.co.uk, Available at: https://www.varsity.co.uk/ fashion/13085 [Accessed 20/01/2021] FIG 3: Allaire, C., (2020), Juicy Couture Is Back! 10 Superfans On Why They Can’t Quit the Tracksuit [online], From: vogue.com, Available at: https://www.vogue.com/article/juicy-couture-tracksuits-are-back [Accessed 20/01/2021] FIG 4: Matches Fashion, (2020), Vetements X Juicy Couture velour maxi dress [online], From: matchesfashion.com, Available at: https:// www.matchesfashion.com/en-jp/products/Vetements-X-Juicy-Couture-velour-maxi-dress-1080946 [Accessed 24/01/2021] FIG 5: Farra, E., (2018), Juicy Couture Fall Ready-to-wear 2018 [online], From: Vogue.com, Available at: https://www.vogue.com/fashionshows/fall-2018-ready-to-wear/juicy-couture [Accessed: 20/01/2021] FIG 6: Juicy Couture SWOT (2021), Own Model FIG 7: Zoominfo (2021), Juicy Couture [database], Available via: zoominfo.com [Accessed 20/01/2021] FIG 8. Urban Outfitters, (2021), Juicy Couture UO Exclusive Dusky Lilac Flare Track Pants [online], From: urbanoutfitters.com, Available at: https://www.urbanoutfitters.com/en-gb/shop/juicy-couture-uo-exclusive-dusky-lilac-flare-track-pants?color=055&type=REGULAR&quanti ty=1 FIG 9: Perceptual Map (2021), Own Model FIG 10: Proposed Collaboration Logo (2021), Own Design FIG 11, 12: Inforgraphics (2021), Own graphics FIG 13: Juicy Couture PESTLE (2021), Own Model FIG 14, 15, 16, 17: Depop app (Version 2.129.1) [Mobile App], [Accessed 20/01/2021] FIG 18: Mau, D., (2016), JUICY COUTURE MAKES IT TO ACTUAL COUTURE WEEK THANKS TO VETEMENTS [online], From: fashionista.com, Available at: https://fashionista.com/2016/07/vetements-spring-2017 [Accessed 29/01/2021] FIG 19, 20, 21, 22, 23, 24: Infographics (2021), Own graphics

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appendices The questionnaire was conducted using Instagram, it was carried out on the 20/01/2021.

There were 150 respondents, all respondents were either Millennial or Generation Z consumers.

Appendix 1

Appendix 2

Appendix 3

Appendix 6

Appendix 7

Appendix 4

Appendix 5

Appendix 8

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