KOBE Marketing Plan by Nicole

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Table of contents marketing plan

I. Company Description II. Business Mission III. Marketing Objective IV. Situation Analysis

Industry Analysis SWOT Analysis

V. Marketing Strategy Target Market Strategy

Marketing Mix Product Place/ Distribution Promotion Price

VI. Implementation, Evaluation, and Control Marketing Research Organizational Structure and Plan Financial Projections Implementation Timetable Summary

MARKETING PLAN I

Company Description

Brittany Stafford, Clay stein, Nicole Calafiore, Josie Peipert and Monica Martinez designed a shopping app in 2013 that revolutionized how people would shop for clothing. They conceived a concept that would make the shopping experience more enjoyable and streamlined for both customer and clothing company. In hopes of creating more profit, merchandise turnover and decreasing customer returns for clothing stores, they also wanted the customer to benefit from getting exactly what they wanted when they wanted it. The origins of their interactive design firm are based off of their experiences in service design, business and fashion marketing classes. They are a young and growing company whose main business is developing interactive technology and aspire to make it an even more pleasant and efficient experience. This design firm is planning to reach the global marketplace after having success within the United States. The apps that they develop are collaborations between their design firm and hired developers who will also maintain the software after being created. In the highly competitive marketplace for apps, they created software that is fresh, innovative and simple for consumers to use and benefit from. As they are a new company, the shopping app for H&M in the United States is their first project as a design firm but they intend to make the H&M shopping app global as it grows. The software design firm also hopes to reach out to other fast fashion stores for new clients as well as department stores and create separate apps for each company and take their apps global as well.

Business Mission

The company’s mission is to develop unique and efficient software solutions; so KOBE’s current project is created and structured by the developers to maximize and simplify the buying activity by reducing time, effort, and stressful situations. The goal of the product is to enhance the online shopping experience by providing high quality pictures that provides the costumer with a three hundred and sixty degree view of what their wardrobe might include. It’s about getting a step further from the competition and providing shoppers to actually select a location, specific store, and create a basket that can be picked up and tried on at their chosen location. The creation of the software will provide shoppers with an alternative to the online experience with an upgraded system specialized on maximizing time consuming in store buying.

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Marketing Objective

The marketing objective is to establish and expand KOBE’s software to the global market by moving forward from the United States borderlines. The software needs to first be reliable to the immediate target customer, provide a secure and customer serviced experience, and reach their main goals; so then it can be placed in another marketplace.

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Objective Metric: Have 1 million users by mid-2014. To succeed with this objective metric the software must have at least 1 million users by mid-2014. By gaining this amount of clients the software will place into the technological marketplace of online shopping experience and act like intermediates between the software and new possible users. Objective Metric: Have 2 major clients by mid-2014 To acquire 2 major clients KOBE developers will illicit the use of personal selling, presenting the software directly to the companies and demonstrating how the software works. By gaining 2 major clients KOBE will be able to reach more consumers and increase sales.

Situation Analysis

Industry Analysis Trends The company has done a lot of research about the growing market. The software that KOBE developers are designing used to be only accessible to the wealthy or professionals in business fields back in 2007, but since then, Smartphone users everywhere, from 13 year olds to 50+ year olds. The growth since 2007 is significant. The first modern Smartphone came out, Apple’s iPhone and the market has rapidly grown since then. By 2011, there were 708 million Smartphone users worldwide and in 2012, the world hit over 1 billion Smartphone users. Similar Smartphone software started out with basic games and graphics but today, they have grown to be much more complex as the market became much bigger. KOBE’s app will be convenient for the customers while helping boost business’ sales. Competitors KOBE’s new software represents a new voice within the app development community. The company is creating new software to the marketplace and therefore faces competition from a variety of sources. There are currently no head-to-head competitors. The existing competition includes, in house development centers, and fast fashion retail stores. In house development centers pose a problem to KOBE. They have been in the marketplace for a while and compose high revenue. The development centers such as Sourcebits, Inc and Willow Tree, have been in the marketplace, meaning they are a trusted source that knows the company, its standards, and its software. By building new, never seen apps, KOBE can confidently assure its customers that its product will work and become a success. Fast fashion retailers are all starting to compose apps for their store. Some of these apps are successful, as others are not. They have a development team to work on competing products of other fast fashion apps.

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KOBE will provide superior service at an affordable price to retailers and show success throughout the industry. Customer Profile KOBE is marketing to a business, whose main consumer is an 18-30 year old female. The consumer is a woman who wants to find good deals on clothes. The app enhances the in store shopping experience and provides a point of sales for the client. The app is guaranteed to stay updated as technology advances and as long as the contract is in tact. Technology The software has a team of graphic designers and programmers that work very closely with the company (purchaser) to update inventory and keep the application working properly. The rapid growth of Smartphone users and online buying brought our software to the front of business opportunity. Originally, the plan was to have one application with multiple stores to shop, but after further research, the company realized that would overload the application, causing it to freeze and crash constantly. The software offers layout and programming to individual stores to provide a better software service. Some of the key benefits are: 1, saving the customersâ&#x20AC;&#x2122; valuable time; 2, confidence in what they are buying, causing less returns for businesses; 3, Comfort and convenient store visits, without crowds or long lines. SWOT analysis The strengths, weaknesses, opportunities, and threats (SWOT) analysis provides a snapshot of (name) internal strengths and weaknesses and external opportunities and threats. Strengths -Active and committed developing team -Reliable product and product services -Updated product services -Provide a point of sale Weaknesses -Limited budgeting -Newly opened company -Small company, big market Opportunities -Fast changing marketplace that coincides with (name) product development process - Growth market -Technology quickly changing -Technology becoming widely used

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-More consumers shopping online Threats -Competitors -Other companies can duplicate services -Other developers do not have limited budgets

Marketing Strategy

Target Market Strategy KOBE’s market strategy for the new software is based off of understanding both the clothing company and the average consumer that shops with them and intend to make apps that streamline and optimize the experience of shopping for both the consumer and clothing store. The app created resolve issues like merchandise and customer turnover, customer returns, and customer involvement and confidence. From their experiences in fashion, service and interactive design the KOBE have a great deal of understanding for both the clothing company’s needs as well as their consumers’ needs. The software will be market first business to business and then move on to market to that business’ consumers and thus rely not only on their relationships with the businesses they work with directly but also on their relationship with their perspective consumers. KOBE intends to create ongoing relationships with these businesses while also creating new relationships with other fast fashion store and eventually department stores. KOBE developers intend to direct their sales with in the United States at first but as the company and the app grow they hope to globalize the apps they are already creating as well as future projects. For now, they will focus this software on companies that sell fast fashion clothing like H&M and their consumers in the United States. These tend to be large companies with large amount of loyal returning customers who crave the new trends each season. Marketing Mix Product: The product is a high fidelity app that will be the first online point of sales system H&M will have to offer their shoppers. This app has a wide variety of features with a unique including a scroll mode where the user can see all the seasons and clothes that H&M has to offer at that time. The app will have a home screen that allows the user to pick what style of garment they want to look within such as T-shirts, shorts, etc. They then will be greeted with a wide variety of product that H&M has to offer. The app also allows the user to save items into a wish list for later shopping adventures or to share with parents and family for birthdays or holidays. The app will let user create a shopping cart and check out immediately through the app. It will be the first mobile app experience for H&M and their first point of sales system. Place/Distribution: The company is headquartered in Somerville, Massachusetts. Nonetheless, the software only has a relationship with the KOBE home office when it concerns downloading and updating. The software has its

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own specific distribution channel functions (transactional, logistical, and facilitating) and only requires one intermediary in this process; which in this case is the downloading application on each costumer smartphone. Promotion: It is important for KOBE’s software to gain respect as the leading one of a kind application that provides consumers an on-line alternative for shopping. The software will emphasize and penetrate the market with the mission statement: KOBE software clients around the country are discovering a new on-line shopping experience that allows them to feel confident with the purchase. The software will reach the desire mainstream thinking by reaching consumers through: Facebook advertisements. Look books Trade shows Company website Google ads Word-of-mouth Brochures at stores. Television advertisements. Being the software a partnership with the stores, promotion relies under the stores name for a maximum credibility and trust. Price: The software prices cover the cost associated with development, sales and support related to the application’s functions. Essentially, the pricing starts with the initial price for licensing to use the software and then an additional charge every month to maintain and update the information. KOBE will sell the licensing rights for $20,000 with a monthly fee of $50,000 to maintain the application. This will give us a total of $570,000 per year. The purchasing company will sign a minimum five-year contract with our company. The employee’s salaries will total $280,000, leaving KOBE with $350,000, after payroll. Rent is $2,500 per month, totaling $32,400 for the whole year, $7,000 in utilities and $16,000 in equipment needed to run the business. After all the costs have been taken out, the profit is $234,600 for the year.

Implementation, Evaluation and Control

Marketing research The company needs to be up to date to two distinct segments in the marketing place: it’s clients needs, and it’s consumer needs. Not only does KOBE need to understand its clients and their ongoing needs, but also the consumers who will be using these apps and their needs. This includes meeting current needs and forecasting the technological advancements as it evolves. This will keep KOBE up to date with technology as well as meeting its consumer’s needs to maintain its successfulness.

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Organizational Structure and plan As a start-up company, it has five people on staff to include: a senior developer, a junior developer, product manager, a marketing executive and an intern. Over the course of the next five years, the company plans on expanding our clientele as well as our employees. We are currently launching the new software with H&M in the US only. By January 2014, we are looking to have more companies to use the software; therefore it would also be hiring more employees. KOBE will be targeting stores such as Zara, Gap and Banana Republic. If one of these stores signs a contract, it will be necessary to hire one more senior developer, product developer and one more junior developer to maintain proper service attention and to have one team specifically focus on that company. KOBE also looks into hiring another marking executive to work with the current executive to be able to go to all the trade shows and conventions to get the software out in the world. By the end of 2014, the software project to take H&M’s app to a global basis, also hiring another product developer and junior developer who will work under the existing senior developer. In Fall 2015, start opening the software to H&M’s other brand, COS, and hire a product developer and junior developer for that application. A year later in Fall 2016, the software will expand with more of H&M’s brands and launch Monki, also hiring a product developer and junior developer. Fall 2017 is H&M’s last expansion with their company +otherstories, where the company will hire a senior developer, product developer and a junior developer. By January 2018, KOBE aspires to be opening up to other companies, possibly larger department stores and hire more employees to maintain the highest quality of service. Financial Projections Objective: Sales of $234,600 by the end of 2013 Sales of $958,922 by the end of 2015 Gross margin higher than 50%, positive cash flow yearly, after the first year.

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*5% increase in cost every year for inflation. *New Sales were determined with our projections of gaining another client plus new account for H&Mâ&#x20AC;&#x2122;s app going global. *New Salaries are based off of our projections for new account, therefore a need for more employees.

*5% increase in cost every year for inflation. *New Sales were determined with our projections of starting an account with COS, a brand under H&M. *New Salaries are based off of our projections for new accounts, therefore a need for more employees.

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*5% increase in cost every year for inflation. *New sales were determined with our projections of starting an account with Monki, a brand under H&M. *New Salaries are based off of our projections for new accounts, therefore a need for more employees.

*5% increase in cost every year for inflation. *New sales were determined with our projections of starting an account with +otherstories, a brand under H&M. *New Salaries are based off of our projections for new accounts, therefore a need for more employees.

Implementation Timetable 2013 The company plans to have one major client by the end of 2013 2014 The company plans to have 2 major clients and one account globally. KOBE plans to hire nine new employees by the end of the year to be able to maintain the workload. Summary KOBEâ&#x20AC;&#x2122;s current software is continuously looking for potential clients but also makes sure to have enough support for our current accounts. The company maintain a relationship with companies that it encounters at trade shows to make an effort to gain one new account every year and develop new software. KOBE is dedicated to hiring enough personnel over the next few years to maintain the workload and keep the software up to date and exceeding expectations. Additionally, the software does not want to be restricted to only fast fashion industry but venture off with other companies that would find our software useful. The ultimate goal is to have our application at the top of the app charts with five stars next to it. The company hopes that over the next five years, it can generate enough cash flow to expand our business into other industries, with new software ideas and major companies seeking to develop their applications.

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Table of contents Appendix 1) Beginning Research A) Data B) Articles 2) Interviews A) Fashion/ Development Designer 3) Surveys A) Survey Questions B) Survey Results 4) H&M Company Research A) Business Concept B) Growth Market C) Brands D) Communicating the Brand E) Financial Information 5) KOBE A) Company Research a) Persona b) Competitors c) Product d) Features & Benefits e) Promotion f) Organizational Structure g) AIDA

1) Beginning Research A) Data: -Customers return % is greater with online consumers than in-store consumers. -Emarketer estimates that apparel & accessories will grow by 20%- to $40.9 billion from $34.2 billion -Computers and consumers electronics increased by 16% to $48.6 billion in 2012 -Apparel is now the fastest growing segment in ecommerce -It is estimated that mobile commerce will rise from about $2 billion in sales in 2013- $62 billion in the next 5 years -Android and ios users spent 525% more time on retail mobile apps in Dec 2012 than Dec 2011 -On average, 2012, 47% of American smartphone owners used mobile shopping apps -On average, shopping apps were used about 17 times month to check prices or make purchases

B) Articles: a) Practicalecommerce.com; 4 Reasons every Retailer should have an App Mobile applications resonate with shoppers, are easy to implement, come with a variety of abilities and purposes, and are becoming the standard for online retailers. There are at least four reasons nearly every retailer should offer a mobile application. Mobile commerce is among the fastest growing retail segments. By some estimates mobile commerce will rise from about $2 billion in sales in 2013 to $62 billion in the next five years. Mobile applications will be part of the amazing growth. 1. Shoppers Love Mobile Retail Apps Mobile smartphone users like â&#x20AC;&#x201D; love â&#x20AC;&#x201D; retail apps. According to data from application analytics firm Flurry, as reported in Tech Crunch, Android and iOS users spent 525 percent more time on retail mobile apps in December 2012 as those users had in December 2011. For a comparison, consider that overall app usage grew about 132 percent in that same period, meaning that retail shopping apps grew at about four times the average. Mobile apps from retailers also had nearly double the usage growth as price comparison applications or purchasing assistance applications, again according to Tech Crunch and

Flurry. Shoppers like apps from their favorite stores, so don’t disappointment. 2. Mobile Retail Apps Are Easy to Make The Apache Cordova project and Adobe’s PhoneGap framework make it possible to create a mobile, retail app using HTML5, CSS, and JavaScript and then release that application as a platform-specific native application on Apple iOS, Android, Blackberry OS, WebOS, Windows Phone 7, Symbian, and Bada. Essentially, this means that having an app for an iPhone or Samsung Galaxy S4 is about has hard as building a website. Many retailers will still need to pay a developer to create the app. But again, relative to having to build a custom application for each possible mobile operating system, these tools make building mobile retail apps relatively easy. Mobile apps don’t have to be harder or more difficult to make than a website. There is no real technical barrier. 3. No Shortage of App Ideas A mobile retail application can be as simple as a product catalog and a shopping cart. Retail applications do not need to do anything other than display product or prices. Some business owners or marketers may feel like an app needs to be revolutionary or at least utilitarian. That is not the case. Showing products and prices may be enough. On the other hand, there are also no limits to what a retail app can do. Here are a few ideas to serve as examples. • Apparel retailer. Monthly fashion magazine or catalog app. • Hardware retailer. App that takes a picture of a screw and provides its dimensions, and links to related products. • Garden supply retailer. iPad app that helps plan backyard gardens, and offers suggested products. • Sporting goods retailer. App that shows the text of sport’s official rulebook. More general examples include a gift registry, loyalty programs, social shopping, or even customer account tool management.

4. Your Competition Has a Mobile App Some 83 percent of the top retailers offer at least one mobile application, according to IT consulting firm Cognizant. In some ways, this means that retailers that donâ&#x20AC;&#x2122;t have mobile applications are already behind.

b) Pracitcalecommerce.com, The Modern Male As I mentioned in "Behavioral Differences Between Men and Women Influence Shopping," a previous article here, men like to do research online. But they are also increasingly making their purchases there as well. Chris Ventry, general manager of Gilt Groupeâ&#x20AC;&#x2122;s GiltMan, told CNBC that the growth rate of men shopping the Gilt site is greater than the growth rate for women, and males are outspending females by 20 to 30 percent. Earlier this month, digital marketing agency iProspect released a report, â&#x20AC;&#x153;The Affluent Male: What His Online Behavior Can Teach Luxury Brand Marketers," that estimates that there are 19 million affluent males (with a household income of at least $100,000) over the age of 18 regularly researching and purchasing on the Internet. And the men are spending on themselves, not buying for others. Forty percent of these male respondents shop online at least twice a week and some are spending more than $30,000 a year. Spurring this significant outlay is luxury menswear, which is growing at a rate of 14 percent per year. The report validates that men prefer to research and buy online, rather than performing research and then going to a retail store for a purchase. As a result, apparel websites that previously sold just to women are adding men's lines of clothing, shoes, and accessories. Babies and Kids Flash sales and designer labels aren't just for adults. Gilt Groupe has a dedicated flash sale site for infants and kids. British site ChildrenSalon sells goods only for infants and children and boasts designer labels from Armani Junior, Dior, and Ralph Lauren. From the Web to the Store Menswear etailer Bonobos started out five years ago selling colorful chinos online. It was so successful that it branched out into suits, shirts, outerwear, and accessories. In a twist

on the usual bricks-and-mortar-to-web story, Bonobos last month signed an agreement to sell its goods in Nordstrom stores. A brand that quickly made a name for itself solely with an online presence, Bonobos will be helping the department store chain with online branding. In February 2011, Nordstorm became the first traditional retailer to acquire a flash sale site when it bought HauteLook, which has over 4 million members, for $270 million. The motivation behind Nordstrom's investments is that most of the innovation in fashion merchandising is occurring online. Summary Most of the impediments to buying clothing online have disappeared. While luxury apparel is driving the jump in online apparel sales, better technology and practices like free shipping, easy returns, and exclusive offers for members are available to all Internet apparel vendors.

c) practicalecommerce.com, Optimizing and Ecommerce site for Mobile Shopping Improving how quickly a page loads and how easy it is to use that page once it has loaded might be one of the most important things online merchants can do to help tablet and smartphone shoppers and take part in the mobile commerce trend. Mobile commerce may have reached between $5.7 and $8.75 billion in the first quarter of this year, according to preliminary data from the U.S. Commerce Department and estimates from an IBM-sponsored study. Although opinions vary, some analysts believe that online sales from mobile devices already represent more than 10 percent of ecommerce sales and could reach 17 percent of ecommerce sales in just the next few years. comScore reported that mobile commerce accounted for 11 percent of U.S. online orders in the fourth quarter of last year. Given these growth estimates, some online retailers are taking steps to improve the shopping experience for site visitors using smartphones and tablets. What follows are three tips for further optimizing an ecommerce site for mobile. 1. Improve Load Times Some 66 percent of mobile shoppers reported abandoning an ecommerce shopping cart because it was either loading too slowly or it never came up at all, according to a new

report from Jumio, a mobile payments firm. Skeptical readers will want to consider the specifics of the Jumio data in light of the fact that the company makes payment-related products, since the data would seem to make an argument for Jumio's own services. Nonetheless, anyone who has used the mobile web is familiar with slow loading pages. So Jumio's premise rings true. How quickly the pages of an ecommerce site load â&#x20AC;&#x201D; mobile or otherwise â&#x20AC;&#x201D; certainly impacts the shopping experience. Consider that Amazon increased its sales revenues one percent for every 100 milliseconds it boosted page load times, according to a 2011 article in Mashable. 2. Create a Finger-friendly Interface I recently designed an ecommerce site for view on desktops, laptops, and tablets, had the site up and running, and only then discovered that there was an entire section that could not be accessed via a mobile device. I had been trying to be mobile-friendly, and yet, I had created an interface that could not be touched, only moused over. The lesson is that you need to build sites and site navigation so that a tablet or smartphone user can access all of the sections with a touch, and that you need to test that touchable interface on many devices. 3. Make your Mobile Site Similar to your PC Site Finally, make sure that there is a similarity between the site that you offer visitors on a PC and the site that mobile users see. Smartphone and tablet users want the same rich, desktop user experience in the palm of their hands. They want to be able to find the same features and sections, regardless of which devices they are using to access an online store. To this end, consider using responsive design that optimizes the site's layout without hiding features or eliminating content.

d) Practicalecommerce.com, Mobile Commerce grows 31% in Q1 Mobile ecommerce sales rose 31 percent in the first quarter of 2013 as tablet-fueled, couch commerce is rapidly becoming the most popular form of online shopping with the so-called multi-channel shopper. Data from the IBM Online Retail Index and the U.S. Department of Commerce suggested that in-store retail sales grew 3.7 percent in the first quarter, overall ecommerce sales grew 20 percent in the first quarter, and mobile ecommerce grew the aforementioned 31 percent for the quarter. This data indicates that the growth of mobile ecommerce outpaced brick-and-mortar sales growth by nearly 10-to-1 and accounted for roughly 17.4 percent of all ecommerce sales, again according to IBM.

The growth of mobile ecommerce outpaced overall ecommerce sales growth. Total U.S. retail sales — excluding automobiles, auto parts, gasoline, travel, and food — were approximately $542.9 billion in the first quarter of 2013, according to the U.S. Commerce Department's Advance Monthly Sales report showing preliminary data. Although official Commerce Department ecommerce data for the first quarter will not be available until May 31, the agency reported that ecommerce and mail order sales combined for about $117.75 billion. Some estimates place ecommerce sales — excluding catalogs and mail order — for the first three months of this year between $32.5 billion and, perhaps, $50 billion. If IBM's data — mentioned above — is correct about mobile commerce's share of online sales, tablet- and smartphone-based purchases may have reached between $5.7 billion and $8.75 billion in the first quarter.

Mobile Design is a Key Factor in Growth The growth in mobile ecommerce “reflects marketers’ ability to create a positive customer experience for consumers shopping on their iPads and Kindles, by designing for the finger and making it easier for customers to browse via their mobile devices,” IBM said in its index, apparently crediting mobile-friendly site and application design with at least some of mobile ecommerce’s success in the first quarter. If the IBM supposition is correct and site design in a key factor in mobile ecommerce growth, online retailers would be wise to focus on responsive design and, perhaps, application creation. Of course, IBM is certainly not the first to suggest a correlation between mobile design and mobile success. In a 2012 blog post, Econsultancy’s David Moth suggested that site design played a role in “Amazon’s massive mobile success.” Moth specifically pointed to large, touchable bottoms and calls-to-action, predictive search that made it easier to find products from a mobile device, and “attractive yet persuasive product pages.” Tablets are the Mobile Ecommerce Device of Choice Tablet usage also contributed to mobile online sales, IBM said, pointing out that iPad traffic increased nearly 80 percent in 1Q13 compared to the prior quarter. Tablets seem to represent the sweet spot, if you will, for online shopping. The devices are mobile enough to be handled while watching television, riding on a commuter train, or waiting in a dentist’s office, but are large enough to provide a much better usage experience compared to smartphones. There is a significant amount of data supporting this concept — that tablets are the preferred devices for mobile ecommerce. As an example, Google’s The Mobile Playbook, 2012 reported that 72 percent of tablet owners used the device to make online purchases on a weekly basis. A separate Google report found that 45 percent of tablet owners made an online purchase during the 2012 holiday shopping season. Similarly, 56 percent of tablet owners used to the device to compare prices before making a purchase and 48 percent used a tablet to find product reviews. Multi-Channel Sales Increasing

The data related to mobile ecommerce sales growth, may also point to more multichannel sales. â&#x20AC;&#x153;The shopping experience has evolved. No longer can we look at shopping in silos, or in terms of in-store versus online. Instead, we have to consider the convergence of these channels, as the digital consumer demands a truly digital experience,â&#x20AC;? wrote Jill Puleri, IBM Global Retail Leader in a post related to an earlier update to the IBM Online Retail Index.

d) Practicalcommerce.com, 7 Ways Mobile Commerce Will Change Retail As the online and offline worlds converge, mobile commerce has the potential to eclipse desktop-based ecommerce and, perhaps, even replace a significant portion of traditional retail shopping. Mobile-driven online sales in the U.S. are expected to reach $2.12 billion in 2013 and explode to about $62.2 billion in the next three years, according to an eMarketer report. With such phenomenal growth, some change is bound to come. There are at least seven ways that mobile commerce is likely to change retail shopping and marketing. Online and multi-channel retailers should start preparing for these changes now. 1. Website Design Adapts Online sellers are already working to build responsive sites that change size and layout in response to the userâ&#x20AC;&#x2122;s device or device orientation. By next year, responsive design will become imperative. Merchants that have not optimized for smartphones and tablets could see an impact to the bottom line. 2. Marketplaces Become More Important Regardless of what mobile providers like AT&T, T-Mobile, Sprint, or Verizon would have you believe, mobile Internet connections can be disappointing. One possible side effect of relatively slow mobile connectivity is that mobile shoppers could be reluctant to open multiple browser windows as they search for products online.

As a result, mobile customers may be more likely to visit marketplaces like Amazon, Rakuten, or Newegg, where they can see products offered by several merchants and compare prices. What’s more, many of these services offer great apps that also makes shopper easier.

bst The Apple iPhone 5 and similar devices allow consumers to shop anywhere. 3. Shopping Becomes Ubiquitous When a shopper is carrying a store in his pocket, he might just shop anywhere. Mobile commerce will make shopping ubiquitous. A fellow riding the train home from work could be ordering jewelry for his wife or girlfriend. A 17-year-old girl at the beach might snap a photo of a friend’s swimsuit and use an app to find and order one just like it online. A sports fan sitting in a stadium might send a text to instantly order a new team jersey. 4. New Payment Services Will Emerge Mobile commerce will accelerate the growth of new or improved payment solutions. Manually typing a credit card number and a shipping address into a shopping cart form is, perhaps, the most painful part of shopping from a mobile device. This too will change. Payment solutions like PayPal, Amazon Payments, or similar — and digital wallets like Google Wallet — will continue to grow and improve, offering mobile shoppers the option to pay with a single tap. Other new payment systems, including some from mobile service providers, will also emerge.

Once users become comfortable with these payment procedures, they will use them both online and at actual physical stores. 5. Mass Market Products Become Commodities Mobile commerce makes pricing transparent. A shopper standing in Macy’s can compare the price of a blouse on any one of a dozen competitors’ websites, effectively transforming nearly every mass-marketed, mass-manufactured product into a commodity. Brands will still do their best to enforce manufacturer-approved prices, but not many sellers will be getting a premium, which some boutique shops enjoyed before mobile’s advent. 6. Price Comparison Will Become Automated Shoppers want to know that they are getting the best possible price before they make a purchase. Already there are dozens of mobile apps that help shoppers make price comparisons. Look for future applications to use information about a person’s tastes or buying habits to automate price comparison. Shoppers will know which stores offer the best combination of price and shipping costs just by building a wish list or snapping a photo of a product or barcode. 7. Product Reviews Will Become Centralized After price comparisons, mobile shoppers are likely to look for user reviews before making a buying decision regardless of whether they are planning to order online or pick up an item from a brick-and-mortar store. Look for review consolidators to emerge, offering shoppers the option to see product or vendor reviews from a number of sources through a single interface, probably an app.

2 ) Interviews A) Interviews from the Fashion/Development Industry a) App Developer- Kyle Coury

Kyle Coury has been developing apps for years, starting with the Sidekick and now developing for Androids and iPhones. Q: What goes into creating an app? A: Basically when you're building an application you have three parts: graphics, backend programming, and user interface design. Graphics include stuff like application icons, headers, backgrounds, and fonts. Backend programming is what actually makes the application work (e.g., communicating with the retail websites) User interface design is what goes into what you see inside of the actual application (i.e., when you open up something like the Facebook app, everything you see was designed by a user interface designer who works with a graphic designer or who does both)

Q: How would you suggest we approach this concept? A: You could hire a development team consisting of a few programmers and graphic designers and have it done in a few weeks. Back when I was developing for the Sidekick I did the backend programming and user interface design myself and then paid a graphic designer to make icons that I used in the application. If I was to make something like this myself it would take a few months and it would be really tough.

Q: Would we be able to link the retailerâ&#x20AC;&#x2122;s website to the app? A: The way you describe your application you're going to be tapping into multiple retail sites. Typically to do this kind of stuff in the best case scenario you would want each website to offer an API (Application Programming Interface). What this allows the developer to do is make his application communicate with the website so that he could populate information into the application (i.e. clothes, prices, deals) I can tell you now, I doubt most online retail stores have one of these because their websites are a big source of revenue and it doesn't help to provide this kind of information to developers. In that case someone would need to manually pull this information from the site and this would be horrible because websites are constantly changing so your app would break all the time and have to be updated consistently to work well. This technique is called web scraping if you want more information. Basically if you had to go this route you would need someone to maintain the application and keep it updated which would incur additional costs. So to answer your question about linking to the stores website you would want an API like I just described otherwise this would be pretty impossible.

Q: What happens after we develop the design of our app? A: When the application is done you need to put it through QA testing (Quality Assurance Testing) There are so many things that could go wrong once an application is developed so you would want a few application testers to use the application extensively and look for issues that end users (i.e., the people that use the application) might come across. An application like you describe would require pretty thorough testing since each website could change and stop working at any time. Q: How much would this cost us roughly? A: A development house could do all of the above including testing but you have to figure how many people would be involved at this point. They could charge by an hourly rate or hit you with a flat fee. I'm not an expert in this department but you're easily talking a few grand. You may want to reach out to some of them if possible. If this was me I would probably charge an hourly rate of somewhere between $19 and $26 an hour. Like I said this would also take one person a significant amount of time, probably a few months for me. The scale of this is pretty big. If you only offered one store its cake but a few different stores would take some serious work to integrate.

b) Urban Outfitters Interview Urban Outfitters Savannah: Q. Who are your main costumers in the store? A. Between the ages of 18 and 30, mostly SCAD students and tourists. Q. Can a hired employee switch position and be in charge of the app orders? A. Impossible, every employee has a specific position an assignment (especially in this store) and there is no one that can switch position, so hiring an extra employee will be necessary or that task. Q. Is it possible to use part of the fitting room for orders storage? A. Well, we are sent a planogram from the headquarters in Philadelphia that specifies stores around the country on how to arrange the store, so I donâ&#x20AC;&#x2122;t have the information on how that can be possible to arrange.

Q. Do you think that the app will work for Urban Outfitters costumers? A. Even though it is a great idea and might attract costumers, Urban Outfitters has an online site that works extremely well and has a high percentage of sales and a specific work team.

c) H&M Customer Service Interview Q. Who is your main customers/ target market? A. The majority of our customers are between the ages of 18 and 24. Our target market is anyone belonging to a group of fashionable and trendy consumers who see shopping as a social activity providing pleasure in their daily life. Q. Who are your competitors? A. Our competitors are every other fashion company. Specifically Gap, Zara, and Forever 21. Q. Do you think this app would be successful within H&M? A. I am very interested in this app idea, and I believe that it would work out with H&M. We do not have online sales in the United States yet and I believe this could help out. Now days, people are rushing in and out of stores and arenâ&#x20AC;&#x2122;t spending much time shopping around. This app could help bring customers into our stores if they have the option of already having their pick of items ready to be tried on. Q. What other brands do H&M offer? And are they sold only in H&M? A. Hennes & Mauritz has 5 other brands, all mostly in Europe. They are: & Other Stories, COS, Monki, Weekday, and Cheap Monday. No, & Other Stories, and Monki are independent stores. Q. How many stores does H&M have in the US and Worldwide? A. 269 stores in US, and 2,800 worldwide. Q. Any other information you can provide that you think will be helpful for this app to be successful? A. Well you can go online to our Annual Report and see all of our numbers and information

from last years sales. Our company keeps all its information sales reports public. Also, H&M is ranked as the 21st most valuable global brand in 2009 and 2010. This makes it the highest ranked retailer in the survey conveyed. Our companies worth is estimated at 12-16 billion.

3) Survey A) Survey Questions 1. What apps do you use to shop online? 2. How long are you on your phone all day? 2-3 hours 4-5 hours 6-7 hours 8-9 hours 3. What makes you return an item? 4. How often are you returning items online? 5. How often do you shop online? Once a week Once a month Once a year Never 6. Do you prefer to shop online or in store? 7. Would you like the option to shop online and pick up in store? 8. What turns you away from using apps to shop 9. Does it matter if the app has customer service

B) Survey Results 1. Just internet browsers 5/3/2013 6:27 PM View respondent's answers

none 5/3/2013 4:11 PM View respondent's answers

Piperlime, Amazon, Zappos, Ebay 5/3/2013 2:00 PM View respondent's answers

none 5/1/2013 10:20 PM View respondent's answers

Net a porter 4/29/2013 11:12 AM View respondent's answers

Net a porter 4/29/2013 10:08 AM View respondent's answers

Urban outfitters, amazon 4/29/2013 8:42 AM View respondent's answers

Amazon 4/29/2013 8:15 AM View respondent's answers

Amazon, macy's

4/29/2013 12:57 AM View respondent's answers

nasty gal 4/28/2013 11:55 PM View respondent's answers

bloomingdales, amazon, ruelala, nordstrom, bluefly 4/28/2013 10:31 PM View respondent's answers

Amazon, Urban Outfitters, American Airlines, Ticketmaster, Fandango 4/28/2013 10:22 PM View respondent's answers

clothing apps 4/28/2013 10:13 PM View respondent's answers

amazon 4/28/2013 10:12 PM View respondent's answers

ruelala gilt 4/28/2013 10:10 PM View respondent's answers

Amazon Apple Store 4/28/2013 10:09 PM View respondent's answers

Net-a-porter, zara, shoponline 4/28/2013 10:05 PM View respondent's answers

None 4/28/2013 8:13 PM View respondent's answers

Amazon 4/28/2013 6:27 PM View respondent's answers

hautelook, urban outfitters, threadsence, modcloth 4/28/2013 5:46 PM View respondent's answers

0 4/28/2013 5:08 PM View respondent's answers

none 4/28/2013 4:58 PM View respondent's answers

Amazon price check. And target 4/28/2013 4:29 PM View respondent's answers

None. 4/28/2013 3:43 PM View respondent's answers

WEBITES 4/28/2013 3:12 PM View respondent's answers

Victoria secret 4/28/2013 2:46 PM View respondent's answers

none 4/28/2013 2:21 PM View respondent's answers

groupon 4/28/2013 2:21 PM View respondent's answers

None 4/28/2013 1:53 PM View respondent's answers

Forever 21, Nasty Gal, Zara 4/28/2013 1:50 PM View respondent's answers

none 4/28/2013 1:48 PM View respondent's answers

Safari 4/28/2013 1:46 PM View respondent's answers

Forever 21 Hautelook 4/28/2013 1:45 PM View respondent's answers

None 4/28/2013 1:43 PM View respondent's answers

Amazon 4/28/2013 1:40 PM View respondent's answers

Wanelo 4/27/2013 2:44 PM View respondent's answers

None 4/26/2013 10:42 PM View respondent's answers

poshmark fab.com 4/26/2013 10:06 PM View respondent's answers

Amazon 4/26/2013 9:23 PM View respondent's answers

safari 4/26/2013 7:35 PM View respondent's answers

i usually use facebook or free apps 4/26/2013 6:56 PM View respondent's answers

None 4/26/2013 6:48 PM View respondent's answers

amazon, ebay, groupons, 4/26/2013 5:29 PM View respondent's answers

wanelo, amazon, ebay 4/26/2013 4:04 PM View respondent's answers

Amazon 4/26/2013 3:53 PM View respondent's answers

None actually. Maybe amazon occasionally but I don't shop online for clothes. 4/26/2013 3:46 PM View respondent's answers

Internet and facebook 4/26/2013 3:44 PM View respondent's answers

Amazon Apple app store Safari Google Groupon Question 2. Usually less than 1 hour per day would be my answer. 4/26/2013 3:42 PM View respondent's answers

Ebay, amazon 4/26/2013 3:42 PM View respondent's answers

amazon 4/26/2013 3:39 PM View respondent's answers

Hautelook 4/26/2013 3:18 PM View respondent's answers

Amazon, eBay 4/26/2013 3:13 PM View respondent's answers

Amazon, eBay, Poshmark 4/26/2013 3:10 PM View respondent's answers

Amazon 4/26/2013 2:01 PM View respondent's answers

1 4/26/2013 1:57 PM View respondent's answers

NONE 4/26/2013 1:26 PM View respondent's answers

3. Wrong item or damaged item. 5/3/2013 6:27 PM View respondent's answers

wrong size, doesn't fit 5/3/2013 4:11 PM View respondent's answers

Doesn't fit 5/3/2013 2:00 PM View respondent's answers

it didn't fit 5/1/2013 10:20 PM View respondent's answers

If its broken or it doesn't fit 4/29/2013 11:12 AM View respondent's answers

Not my size or not like it seems online 4/29/2013 10:08 AM View respondent's answers

If it doesn't fit 4/29/2013 8:42 AM View respondent's answers

Damages and size changes 4/29/2013 8:15 AM View respondent's answers

I usually don't return items 4/29/2013 12:57 AM View respondent's answers

quality and size. 4/28/2013 11:55 PM View respondent's answers

if it didn't fit or if it came with a default 4/28/2013 10:31 PM View respondent's answers

Doesn't fit, defective, bad quality, or if it doesn't look like it did online 4/28/2013 10:22 PM View respondent's answers

if it doesn't fit, or if it's broken or damaged 4/28/2013 10:13 PM View respondent's answers

size 4/28/2013 10:12 PM View respondent's answers

fitting 4/28/2013 10:10 PM View respondent's answers

when i dont get what i order 4/28/2013 10:09 PM View respondent's answers

Size, fitting 4/28/2013 10:05 PM View respondent's answers

Does not fit Decide I don't like it 4/28/2013 8:13 PM View respondent's answers

Does not fit 4/28/2013 6:27 PM View respondent's answers

poor fit 4/28/2013 5:46 PM View respondent's answers

price, didnt try on prior, friend didnt approve 4/28/2013 5:08 PM View respondent's answers

if it doesn't fit 4/28/2013 4:58 PM View respondent's answers

Doesn't fit or doesn't look as good as online

4/28/2013 4:29 PM View respondent's answers

Bad fit. Misleading description or color of item. 4/28/2013 3:43 PM View respondent's answers

Damaged 4/28/2013 3:12 PM View respondent's answers

Size 4/28/2013 2:46 PM View respondent's answers

don't like it, didn't try it on, change of mind 4/28/2013 2:21 PM View respondent's answers

wrong size 4/28/2013 2:21 PM View respondent's answers

If it is damaged. 4/28/2013 1:53 PM View respondent's answers

If I will not use the item, the fitting is not correct, or clothes are ruined 4/28/2013 1:50 PM View respondent's answers

wrong size 4/28/2013 1:48 PM View respondent's answers

If its not what I wanted or not how I imagined it to be 4/28/2013 1:46 PM View respondent's answers

Wrong Size, not happy with item 4/28/2013 1:45 PM View respondent's answers

Not fitting right, not what I expected from picture, 4/28/2013 1:43 PM View respondent's answers

Doesn't fit, not the quality I was looking for 4/28/2013 1:40 PM View respondent's answers

Size issue, damage, quality of item. 4/27/2013 2:44 PM View respondent's answers

If it doesn't fit right or looks very different from the online photo 4/26/2013 10:42 PM View respondent's answers

I rarely do 4/26/2013 10:06 PM View respondent's answers

Fit Size 4/26/2013 9:23 PM View respondent's answers

bad fit/ fabric 4/26/2013 7:35 PM View respondent's answers

i dont like it or it doesnt look right in my house 4/26/2013 6:56 PM View respondent's answers

It doesn't work/fit 4/26/2013 6:48 PM View respondent's answers

doesn't fit, not as pictured online, quality is not as I expected 4/26/2013 5:29 PM View respondent's answers

doesn't fit 4/26/2013 4:04 PM View respondent's answers

If it is defective and expensive 4/26/2013 3:53 PM View respondent's answers

I don't really because I don't shop online but I suppose if it doesn't fit. 4/26/2013 3:46 PM View respondent's answers

Bad fit or poor fabric 4/26/2013 3:44 PM View respondent's answers

Broken/damaged upon receipt Not what I ordered 4/26/2013 3:42 PM View respondent's answers

Wrong size, deffective, didnt need to spend the money 4/26/2013 3:42 PM View respondent's answers

Bad quality/fit/not as cute as I thought 4/26/2013 3:39 PM View respondent's answers

doesn't fit, damages or I found something similar that I like better or is cheaper 4/26/2013 3:18 PM View respondent's answers

If the item is not in the condition I was told or if it's just completely wrong. 4/26/2013 3:13 PM View respondent's answers

wrong size 4/26/2013 3:11 PM View respondent's answers

The item doesn't fit / isn't what was advertised. 4/26/2013 3:10 PM View respondent's answers

Doesn't fit 4/26/2013 3:08 PM View respondent's answers

If the item sucks. 4/26/2013 2:01 PM View respondent's answers

broken, size, defects 4/26/2013 1:57 PM View respondent's answers

GUILT, PRODUCT QUALITY, FIT 4/26/2013 1:26 PM View respondent's answers

4. Rarely. It's a hassle. 5/3/2013 6:27 PM View respondent's answers

once in a while 5/3/2013 4:11 PM View respondent's answers

Not very often 5/3/2013 2:00 PM View respondent's answers

Never 4/29/2013 11:12 AM View respondent's answers

Not regular 4/29/2013 10:08 AM View respondent's answers

about 1/5 4/29/2013 8:42 AM View respondent's answers

Never 4/29/2013 8:15 AM View respondent's answers

Never 4/29/2013 1:53 AM View respondent's answers

Never 4/29/2013 12:57 AM View respondent's answers

always 4/28/2013 11:55 PM View respondent's answers

Never 4/28/2013 10:31 PM View respondent's answers

Not very often, almost never 4/28/2013 10:22 PM View respondent's answers

never 4/28/2013 10:13 PM View respondent's answers

never 4/28/2013 10:12 PM View respondent's answers

When the store provides for me a return label 4/28/2013 10:10 PM View respondent's answers

twice per year 4/28/2013 10:09 PM View respondent's answers

usually never. 4/28/2013 10:05 PM View respondent's answers

Very seldom 4/28/2013 8:13 PM View respondent's answers

Almost never 4/28/2013 6:27 PM View respondent's answers

not often 4/28/2013 5:46 PM View respondent's answers

0 4/28/2013 5:08 PM View respondent's answers

not very often 4/28/2013 4:58 PM View respondent's answers

Not often-I think so far this year only one time 4/28/2013 4:29 PM View respondent's answers

Rarely. 4/28/2013 3:43 PM View respondent's answers

Never 4/28/2013 3:12 PM View respondent's answers

20% 4/28/2013 2:46 PM View respondent's answers

none

4/28/2013 2:21 PM View respondent's answers

never 4/28/2013 2:21 PM View respondent's answers

Not very often. 4/28/2013 1:53 PM View respondent's answers

rarely 4/28/2013 1:50 PM View respondent's answers

rare 4/28/2013 1:48 PM View respondent's answers

Not very often 4/28/2013 1:46 PM View respondent's answers

once every few months 4/28/2013 1:45 PM View respondent's answers

not too oftenâ&#x20AC;Ś 4/28/2013 1:43 PM View respondent's answers

Rarely 4/28/2013 1:40 PM View respondent's answers

Not very Often. 4/27/2013 2:44 PM View respondent's answers

Very rarely, I choose carefully 4/26/2013 10:42 PM View respondent's answers

not often 4/26/2013 10:06 PM View respondent's answers

Not very often 4/26/2013 9:23 PM View respondent's answers

never 4/26/2013 7:35 PM View respondent's answers

i dont... well havent yet 4/26/2013 6:56 PM View respondent's answers

Not often 4/26/2013 6:48 PM View respondent's answers

30 % of the purchases 4/26/2013 5:29 PM View respondent's answers

almost never 4/26/2013 4:04 PM View respondent's answers

Rarely 4/26/2013 3:53 PM View respondent's answers

Never. 4/26/2013 3:46 PM View respondent's answers

Twice a year. 4/26/2013 3:44 PM View respondent's answers

Rarely 4/26/2013 3:42 PM View respondent's answers

Never 4/26/2013 3:42 PM View respondent's answers

not very often because I stalk reviews 4/26/2013 3:39 PM View respondent's answers

once every few months. 4/26/2013 3:18 PM View respondent's answers

not very often 4/26/2013 3:13 PM View respondent's answers

OFTEN 4/26/2013 3:11 PM View respondent's answers

I've only returned online items maybe twice. 4/26/2013 3:10 PM View respondent's answers

Never 4/26/2013 3:08 PM View respondent's answers

Never have 4/26/2013 2:01 PM View respondent's answers

5% 4/26/2013 1:57 PM View respondent's answers

20% OF THE TIME 4/26/2013 1:26 PM View respondent's answers

8. I am consistently being delivered the incorrect items or I am given the items very late with expensive shipping. 5/3/2013 6:27 PM View respondent's answers

doesn't feel as secure, easier on the computer 5/3/2013 4:11 PM View respondent's answers

You are never sure exactly what you are getting, giving out important info over the phone 5/3/2013 2:00 PM View respondent's answers

Sometimes it's harder to use than the web page 4/29/2013 11:12 AM View respondent's answers

Not free shipping 4/29/2013 10:08 AM View respondent's answers

I rather shop instore 4/29/2013 8:42 AM View respondent's answers

delivery time 4/29/2013 8:15 AM View respondent's answers

Sometimes they crash, it's a little annoying. Usually you don't have as much information as on the web page 4/29/2013 12:57 AM View respondent's answers

nothing 4/28/2013 11:55 PM View respondent's answers

Maybe if the app is running slowly 4/28/2013 10:31 PM View respondent's answers

Nothing really, it's just not as comfortable if you're looking at the products on your phone. The display isn't as big as a computer screen. 4/28/2013 10:22 PM View respondent's answers

don't know 4/28/2013 10:13 PM View respondent's answers

time 4/28/2013 10:12 PM View respondent's answers

bad quality pictures of the garments 4/28/2013 10:10 PM View respondent's answers

sometimes the item is not the way i espected 4/28/2013 10:09 PM View respondent's answers

Get scared if its going to work properly. 4/28/2013 10:05 PM View respondent's answers

Not sure which ones to use or which ones are good 4/28/2013 8:13 PM View respondent's answers

My screen is too small, cannot see the full product 4/28/2013 6:27 PM View respondent's answers

tons of emails 4/28/2013 5:46 PM View respondent's answers

limited screen space, apps have a lot of problems 4/28/2013 5:08 PM View respondent's answers

while online shopping you can never tell how an item may fit 4/28/2013 4:58 PM View respondent's answers

Don't know of shopping apps. 4/28/2013 3:43 PM View respondent's answers

Worried about fitting 4/28/2013 3:12 PM View respondent's answers

I don't know 4/28/2013 2:21 PM View respondent's answers

not being able to see and interact with the product 4/28/2013 2:21 PM View respondent's answers

It is easier to see the product on a computer screen. 4/28/2013 1:53 PM View respondent's answers

Using apps can be slower than actually going online which can affect the order 4/28/2013 1:50 PM View respondent's answers

easier to use the internet 4/28/2013 1:48 PM View respondent's answers

Sometimes I don't trust the apps 4/28/2013 1:46 PM View respondent's answers

too confusing, not simple 4/28/2013 1:45 PM View respondent's answers

Cant see exactly what garment will look like 4/28/2013 1:43 PM View respondent's answers

Too technical to use 4/28/2013 1:40 PM View respondent's answers

When the fit is important and I'd rather go in store personally try things on. 4/27/2013 2:44 PM View respondent's answers

I don't have a smart phone 4/26/2013 10:42 PM View respondent's answers

credit card probe 4/26/2013 10:06 PM View respondent's answers

Too much clutter 4/26/2013 9:23 PM View respondent's answers

complicated 4/26/2013 7:35 PM View respondent's answers

the apps are to slow! 4/26/2013 6:56 PM View respondent's answers

the things I want aren't available 4/26/2013 6:48 PM View respondent's answers

spam 4/26/2013 5:29 PM View respondent's answers

nothing

4/26/2013 4:04 PM View respondent's answers

If what I want isn't available online 4/26/2013 3:53 PM View respondent's answers

I like to try things on. You never know if they'll actually fit because sizes are always different. 4/26/2013 3:46 PM View respondent's answers

I like to see and feel merchandise 4/26/2013 3:44 PM View respondent's answers

Crappy UI or not having actual products to view through app 4/26/2013 3:42 PM View respondent's answers

The fact that their apps 4/26/2013 3:42 PM View respondent's answers

inaccessibility, to many features on a small app so the interface is poor 4/26/2013 3:39 PM View respondent's answers

they look the same way online... but with a smaller screen which is irritating. 4/26/2013 3:18 PM View respondent's answers

Sometimes it's just easier to manage a web-page version of an app, or I could just go to a store and pick up the same thing without waiting through the delivery process. 4/26/2013 3:13 PM View respondent's answers

On my phone, I don't like using an app if it isn't user-friendly, has a tendency to crash, or continuously freezes. 4/26/2013 3:10 PM View respondent's answers

Paying too much, and lack of information online about the app 4/26/2013 3:08 PM View respondent's answers

Too many Survey questions. 4/26/2013 2:01 PM View respondent's answers

N/A 4/26/2013 1:57 PM View respondent's answers

MEH.. JUST NEVER APPEALED TO ME. 4/26/2013 1:26 PM View respondent's answers

4) H & M Company Research A) Business Concept 1) Our business concept is to give the customer unbeatable value by offering fashion and quality at the best price. H&Mâ&#x20AC;&#x2122;s own designers interpret the latest fashion trends and create collections that are accessible to all. We ensure the best price by: -having few middlemen -having a broad, in-depth knowledge of design, fashion and textiles -buying the right products from the right markets -being cost-conscious at every stage

H&M is driven by seven important core values: • Keep it simple • Straight forward and open-minded • Constant improvement • Entrepreneurial spirit • Cost conscious • Team work • Belief in people Quality is a central issue, from initial idea to final product. Our quality testing is extensive. We also work hard to make sure goods are produced with the least possible environmental impact and under good working conditions. H&M does not own any factories. Production is outsourced to independent suppliers, primarily in Asia and Europe, through H&M’s local production offices. Nor does H&M own any of its stores. Instead H&M rents store space from international and local landlords.

B) Growth Target a) H&M’s growth target is to increase the number of stores by 10–15 percent per year, and at the same time increase sales in comparable units. This growth, which is entirely self-financed, will proceed with an emphasis on quality, sustainability and continued high profitability.

b) Sales Markets 1) Germany is H&M’s largest market, followed by the US, UK and France. Looking forward, H&M sees great potential for continued expansion in existing as well as new markets. All brands will all continue to grow through more stores but also on digital platforms such as hm.com, mobile apps and social media. In some markets H&M is collaborating with franchise partners, but franchising is not part of the general expansion strategy

2) Markets EAST ASIA -Australia Australia will become a new market for H&M in 2014. -China First store: 2007 Number of stores 28 Feb 2013: 145 Sales in 2012: SEK 5,411 -Hong Kong SAR* First store: 2007 Number of stores 28 Feb 2013: 145 Sales in 2012: SEK 5,411 -Indonesia The very first H&M store will open in Jakarta, Indonesia, the most populous city in

Southeast Asia, at the beginning of 2013 in collaboration with franchiser J.S. Gill. -Japan First store: 2008 Number of stores 28 Feb 2013: 24 Sales in 2012: SEK 2,504 -Malaysia First store: 2012 Number of stores 28 Feb 2013: 3 Sales in 2012: SEK 84 -Singapore First store: 2011 Number of stores 28 Feb 2013: 2 Sales in 2012: SEK 409 -South Korea First store: 2010 Number of stores 28 Feb 2013: 11 Sales in 2012: SEK 594 -Thailand EUROPE First store: 2012 Number of stores 28 Feb 2013: 92** Sales in 2012: SEK 1,914* -Austria First store: 1994 Number of stores 28 Feb 2013: 68 Sales in 2012: SEK 4,782 m -Belgium First store: 1992 Number of stores 28 Feb 2013: 71 Sales in 2012: SEK 3,308 m -Bulgaria First store: 2012 Number of stores 28 Feb 2013: 6 Sales in 2012: SEK 121 m -Croatia First store: 2011 Number of stores 28 Feb 2013: 11 Sales in 2012: SEK 608 m -Czech Republic First store: 2003 Number of stores 28 Feb 2013: 31 Sales in 2012: SEK 769 -Denmark First store: 1967 Number of stores 28 Feb 2013: 94 Sales in 2012: SEK 4,297 m -Estonia The first three H&M stores will open in Tallinn in autumn 2013. -Finland First store: 1997 Number of stores 28 Feb 2013: 53 Sales in 2012: SEK 2,429 m -France First store: 1998 Number of stores 28 Feb 2013: 185 Sales in 2012: SEK 9,976 m -Germany First store: 1980 Number of stores 28 Feb 2013: 406 Sales in 2012: SEK 30,303 m -Greece First store: 2007 Number of stores 28 Feb 2013: 25 Sales in 2012: SEK 841 m -Hungary First store: 2005 Number of stores 28 Feb 2013: 27 Sales in 2012: SEK 622 m -Ireland First store: 2005 Number of stores 28 Feb 2013: 16 Sales in 2012: SEK 581 m -Italy First store: 2003 Number of stores 28 Feb 2013: 105 Sales in 2012: 4,861 -Latvia First store: 2012 Number of stores 28 Feb 2013: 2 Sales in 2012: SEK 36 m

-Lithuania Lithuania will be a new H&M market in autumn 2013 when the first H&M stores open in Vilnius. -Luxembourg First store: 1996 Number of stores 28 Feb 2013: 10 Sales in 2012: SEK 374 m -Netherlands First store: 1989 Number of stores 28 Feb 2013: 127 Sales in 2012: SEK 6,688 m -Norway First store: 1964 Number of stores 28 Feb 2013: 110 Sales in 2012: SEK 5,615 m -Poland First store: 2003 Number of stores 28 Feb 2013: 106 Sales in 2012: SEK2,947 m -Portugal First store: 2003 Number of stores 28 Feb 2013: 23 Sales in 2012: SEK 862 m -Romania First store: 2011 Number of stores 28 Feb 2013 : 22 Sales in 2012: SEK 635 m -Russia First store: 2009 Number of stores 28 Feb 2013: 40 Sales in 2012: SEK 2,122 m -Serbia The first store in Serbia, in the capital Belgrade, is planned to open at the end of 2013. -Slovakia First store: 2007 Number of stores 28 Feb 2013: 13 Sales in 2012: SEK 339 m -Slovenia First store: 2004 Number of stores 28 Feb 2013: 12 Sales in 2012: SEK 485 m -Spain First store: 2000 Number of stores 28 Feb 2013: 149 Sales in 2012: SEK 5,807 m -Sweden First store: 1947 Number of stores 28 Feb 2013: 176 Sales in 2012: SEK 8,225 m -Switzerland First store: 1978 Number of stores 28 Feb 2013: 82 Sales in 2012: SEK 5,821 m -Turkey First store: 2010 Number of stores 28 Feb 2013: 11 Sales in 2012: SEK 443 m -United Kingdom First store: 1976 Number of stores 28 Feb 2013: 228 Sales in 2012: SEK 10,413 m MIDDLE EAST & NORTH AMERICA -Bahrain First store: 2008 Number of stores 28 Feb 2013: 92** Sales in 2012: SEK 1,914* -Egypt First store: 2008 Number of stores 28 Feb 2013: 92** Sales in 2012: SEK 1,914* -Israel First store: 2008 Number of stores 28 Feb 2013: 92** Sales in 2012: SEK 1,914* -Jordan

First store: 2008 Number of stores 28 Feb 2013: 92** Sales in 2012: SEK 1,914* -Kuwait First store: 2008 Number of stores 28 Feb 2013: 92** Sales in 2012: SEK 1,914* -Lebanon First store: 2008 Number of stores 28 Feb 2013: 92** Sales in 2012: SEK 1,914* -Morocco First store: 2008 Number of stores 28 Feb 2013: 92** Sales in 2012: SEK 1,914* -Oman First store: 2008 Number of stores 28 Feb 2013: 92** Sales in 2012: SEK 1,914* -Qatar First store: 2008 Number of stores 28 Feb 2013: 92** Sales in 2012: SEK 1,914* -Saudi Arabia First store: 2008 Number of stores 28 Feb 2013: 92** Sales in 2012: SEK 1,914* -United Arab First store: 2008 Number of stores 28 Feb 2013: 92** Sales in 2012: SEK 1,914* NORTH AMERICA -Canada First store: 2004 Number of stores 28 Feb 2013: 62 Sales in 2012: SEK 3,125 -Mexico First store: 2012 Number of stores 28 Feb 2013: 1 Sales in 2012: SEK 47 -United States First store: 2000 Number of stores 28 Feb 2013: 269 Sales in 2012: SEK 12,550 SOUTH AMERICA -Chile First store: 2013 Number of stores 28 Feb 2013: 0 Sales in 2012: SEK 0

C) Brands a) H& M -H&M, which opened its first store in Sweden in 1947, is now represented on more than 40 markets. In a number of countries, the collections are also available online. H&Mâ&#x20AC;&#x2122;s designers create a broad and diverse range of fashion for men, women, youth and children. In addition to the clothes cosmetics, accessories and home textile products are all part of what H&M has to offer. b) COS -Modern, urban and chic. COS offers customers a combination of timelessness and distinctive trends, for both women and men. From quality clothing for work and party-time to carefully selected accessories. All with fashion sensibility down to the smallest detail. COS also offers cute and comfortable fashion for children. c) Monki - Monki is synonymous with personal creativity and expression. Here young women can find clothes, accessories and a novel store concept that is its own imaginative world.

The stores and monki.com provide innovative collections and an inspiring fashion experience characterised by playfulness and colourful graphic design. d) Weekday - Weekday sells its own brands MTWTFSS Weekday, Cheap Monday, Weekday Vintage and Weekday STOREMADE, but also commissions design collaborations with independent fashion labels such as Carin Wester, Bless and Bruno Pieters. Weekday’s stores offer urban fashion for men and women – always at the best price. e) Cheap Monday -Cheap Monday combines influences from street fashion and subcultures with a catwalk vibe. Hip men and women come here to find denim, clothing and accessories at a high fashion level and prices accessible to all. Each season, Cheap Monday holds a catwalk show in Stockholm, Sweden. f) Fabric Scandinavien AB - In 2008, H&M Hennes & Mauritz AB acquired 60 percent of the shares in the privately owned Swedish fashion company FaBric Scandinavien AB, which included the brands Monki, Weekday and Cheap Monday. In 2010 the remaining part of the shares were acquired. g) & Other Stories - & Other Stories is a fashion brand offering women a wide range of shoes, bags, accessories, beauty and ready-to-wear to create their personal style, or story. The first collections will be launched in stores and online during spring 2013 in selected European countries.

D) Communicating the Brand a) Inspiring Everywhere - H&M sets high-quality standards of communication and uses a variety of channels to reach the public. The store is the most important communication channel – each visit should offer the customers an inviting and inspiring experience. H&M appeals to the wide public and everyone should feel comfortable to step in and discover the stores, whatever their background. H&M keeps in close contact with the media, both to showcase our products and to provide information about H&M. We also communicate regularly with the business press and the financial markets. H&M Magazine, which is distributed through all H&M stores, offers readers a mix of fashion, inspiration and the latest lifestyle trends. It is published four times a year and is also posted on the website

b) H & M Online - H&M isn’t just expanding with new stores – we’re also growing through our online and catalogue sales. Hm.com provides inspiration and information – while giving customers the opportunity to shop the collections. Hm.com provides inspiration and information – while giving customers the opportunity to shop the H&M and H&M Home collections through a few simple clicks. The site’s dressing rooms offer styling tips with suggestions for outfits, or how to mix and match clothes and accessories from the entire H&M range. H&M Life is the inspirational section. Here curious visitors find fashion news, style guides and trend updates from all over the world. Hm.com is aimed at the public, the media, potential jobseekers, financial markets and shareholders. Information on campaigns, collections, finance, store locations and the availability of online shopping is updated regularly. H&M Shop Online and catalogues are primarily aimed at customers who enjoy exploring the H&M brand and shopping the collections from home.H&M has established a strong social media presence that is constantly growing. We are one of the leading fashion companies on Facebook, Twitter, YouTube and Google+ as well as the Chinese social networks Youku and Sina Weibo. Each network is updated on a regular basis. All online channels should communicate H&M’s business concept and encourage visitors to discover the physical stores. H&M has established a strong social media presence that will only continue to grow. Today, we are part of our customers’ daily life through our pages on Facebook, Twitter, Instagram, Google+ and YouTube as well as the Chinese social networks Youku and Sina Weibo. Each network is updated on a regular basis. Through social media, millions of H&M fans and followers share ideas and opinions and get quick answer to their queries. New fashion videos and reports are uploaded onto YouTube weekly and have already been seen more than 30 million times. Through the H&M apps, customers can explore the latest collections and campaigns, find out what’s new at H&M and locate our stores. At the launch in August 2010, the iPhone app was the most downloaded application in almost all of H&M’s markets.

Financial Information -H&M shares are among NASDAQ OMX Stockholm’s most traded shares. The offer in H&M’s financial communication follows the same pattern as our other communication. Through providing accurate and relevant information at, for example, press and telephone conferences, journalists and analysts get the information they need to do their job, while H&M’s brand is strengthened and clarified.

Sales

Development of February and First Quarter 2013

Press Release- First Quarter 2013

3 Month Report

Results for First Quarter

Financial Position and Cash Flow

Group Income Statement

Sales including VAT by Country & Number of Stores

Five Year Summary

Segment Reportin SEK m

Full Year (2012) Full Year Report 2012

Financial Position and Cash Flow

Full Year Group Income Statement

Full Year Sales VAT by Country & Number of Stores

d) Campaigns & Collaborations - Every year, H&M launches a number of major campaigns, complemented by smaller additions. World-renowned photographers, including Richard Avedon, Mario Testino and Mikael Jansson, have shot models such as Claudia Schiffer, Naomi Campbell and Gisele B端ndchen for H&M. The campaigns act as exciting invitations to the H&M brand. Since 2004, H&M has also collaborated with international designers and fashion icons such as Karl Lagerfeld, Stella McCartney, Versace and Marni. The designer collaborations boost the H&M brand by creating buzz and making the basic business concept of fashion and quality at the best price clearer to customers.

5) KOBE A) Company Research/ Work a) Personas 1) Client Persona h

2) Consumer Persona

b) Competitors 1) In House Developing Centers -

#1- Sourcebits, Inc.: Worked for major companies such as: GE, SAP, Intel, MIT, P&G, Hersheyâ&#x20AC;&#x2122;s, and Coca-Cola, as well as emerging technology companies such as Knocking, Peel, TwitPic, CloudOn, and Sling Media. They had apps like TwitPic, Fossil, Powerade, and Blackboard #2- Fueled #3 Willow Tree: The company has helped clients launch apps in iOS, Android, Blackberry, Windows Phone, mobile web/HTML5, Facebook, and interactive TV. WillowTree has received numerous industry awards, including being ranked a top

global mobile development company by SourcingLine and Best Web Design Agencies and being covered by CNBC, Forbes, MacWorld and CNET. Notable clients include Johnson & Johnson, GE, Cox Media/Valpak, Manta, The VERGE, the Department of Defense, Syracuse University, the University of Virginia, The Game Show Network, the Brooklyn Nets (NBA) and the Philadelphia Eagles (NFL) #4 Mobisoft Infotech #5- Small Planet Digital: Small Planet Digital is a Brooklyn, NY based company specializing in iPhone, iPad and Android application development. We were founded in 2009 and have designed and developed over 50 apps, including 22 category #1s on the App Store, for great clients like General Motors, Disney Parks, Disney Publishing, Time Inc., Hearst, Amplify, University of North Carolina, Discovery Communications, Paramount, and many others. HEARST MAGAZINE #6 TechAhead Software #7 Ebbex #8 Appetizer Mobile LLC: They do a lot of work. They have apps for MAC cosmetics, Lady Gaga, the NBA, Sony, Kim Kardashian, 50 Cent, and Sephora to name a few of the major clients. #8 Appetizer Mobile LLC: They do a lot of work. They have apps for MAC cosmetics, Lady Gaga, the NBA, Sony, Kim Kardashian, 50 Cent, and Sephora to name a few of the major clients. #9 Imulus: They do some stuff for GE #10 Digital valiance: They developed the eHarmony app

2) Fast Fashion Retailers -

Forever21 Zara Gap Banana Republic

c) Product 1) High fidelity app that will be the first online point of sales system H&M will have 2) 3)

to offer to their customers. Wide variety of features, including: scroll mode to select clothe, home screen to select garment style and many shopping adventures. Also, the option to create a basket to have ready at your location of choice to be tried on/purchased. H&M first mobile app experience and their first point of sales system in US

d) Features and Benefits FEATURES: · Friendly and easy to use app · Store locations database · Customer Service · Summarize basket price · High quality pictures · 360 view of the clothe · Basket reserved for 24 hrs · Exact visit day Basket reservation · Switch from store to store at a same location · Outfit selections · In stock availability around the different stores BENEFITS: · Time saving shopping experience · Confidence and reliability on the shopping progress · Escape from crowded and busy shopping centers · Money saving experience from deciding the exact clothes · Comfortable and convenience store visit · Personalized outfits selection for you · Complete shopping mall experience but on line

d) Place

you get

e) Promotion -Trade shows -Word of mouth -Online portfolio -Facebook Ads -Google ads -Brochures at store -Introductory Stage, broad, high cost, high quality -Promotion relies under the stores name for a maximum credibility and trust

f) Organizational Structure -By January 2014, we are looking to have more companies to use our software; therefore we would be hiring more employees -Hire product and senior developer for each goal: -End of 2014: H&M to a global basis -Fall 2015: sign with H&Mâ&#x20AC;&#x2122;s brand COS -Fall 2016: sign with monki business -Fall 2017: H&Mâ&#x20AC;&#x2122;s last expansion with their company &other stories where we will hire a senior, product, and junior developer -January 2018: open to other companies

g) AIDA Attention: Our Company will gain the attention first by gaining the attention of Fast Fashion stores like H&M by attending trades shows and acquiring public relations with the businesses. Once the targeted company has been contracted we will gain the attention of their consumers through the companyâ&#x20AC;&#x2122;s advertising and social media. Interest: Once Attention has been attained Business to business we will fuel the interest of the company by demonstrating how the app works, how simple it is and how it will save them money. We will employ personal selling to meet with businesses one on one to show them our product. When targeting their consumers we will fuel interest through continuing with social media like twitter and blogs as well as ads on popular sites that may be frequent. Desire: We will continue personal selling with the companies as well as the use of sales promotion to continue to gain the interest of the targeted companies. We will also demonstrate the features and benefits of the product and compare it to the apps and websites that they already have to show that our product is a much better and efficient way for them to profit. We will increase desire in their consumer through sales promotions. Action: We will close the deal business to business with the continuation of personal selling proving that our app is the best app for them and how it will benefit them. We will also use in store personal selling so that store associates can directly urge their consumers to download the app and use it.

We use the push strategy approach by first promoting to the business that will benefit from its consumers use of the product who will then promote the product to

their consumers.

h) Employees/Design Team- www.glassdoor.com 1) Senior Developer 2) 3) 4) 5)

-Average income: $130,000 Junior Developer -Average income: $46,880 Product Manager -Average income: $43,268 Marketing Executive -Average income: $60,000 Intern -Credit Based

i) Price/ Costs 1) Covers the cost of development, sales, and support related to the applicationâ&#x20AC;&#x2122;s 2) 3) 1)

functions The company charges the store with an initial licensing price of $20,000 and a monthly fee to maintain an update of $50,000 Total of $570,000 per year with a minimum 5 year contract Adobe: $5,000 Rent: $32,400 Utilities: $7,000 Macs: $10,000 Printers: $1,000

2) Employees salary $220,000, rent $32,400, $7000 in utilities and $16,000 on equipment Total profit per year: $246,600

3) j) Financial Predictions -Objective: Sales of $234,600 by the end of 2013 -Sales of $958,922 by the end of 2015 -Gross margin higher than 50% positive cash flow yearly after the first year

2013 Gross Sales Salaries Cost Net Profit Gross Margin

2014 Gross Sales Salaries Cost Net Profit Gross Margin

2015 Gross Sales Salaries Cost Net Profit Gross Margin 2016 Gross Sales Salaries Cost Net Profit Gross Margin 2017 Gross Sales Salaries Cost Net Profit Gross Margin

$570,000.00 $280,000.00 $55,400.00 $234,600.00 41%

LY LY

$930,000.00 $570,000.00 $370,000.00 $280,000.00 $58,170.00 $791,830.00 53% TY LY 260,000 $1,500,000.00 90,000 $650,000.00 $61,078.50 $958,921.50 54% TY LY $260,000.00 $1,760,000.00 $90,000.00 $740,000.00 $64,132.43 $1,125,867.58 56% TY LY $260,000.00 $2,020,000.00 $220,000.00 $830,000.00 $67,339.05 $1,162,660.95 51%