SUMMARY Moda Operandi is an online luxury fashion retailer that allows customers to preorder looks directly from designers, immediately after their runway show. Committed to providing their customers with the best possible experience throughout their online platform and their elite showroom, which operates by appointments only, Moda operandi is devoted to offering an expertly curated in-season product assortment. In correspondence with the brandâ€™s history we decided that the next step for them to take is to open a pop up shop during fashion week at one of the most exclusive streets in SOHO. Creating an in store experiences where customers can come into the stores and customize one of the products being offered, as well as shop different accessories being showcased at the store. We will be offering an invite-only runway-shop event, where our most elite customers can RSVP, come to the shop, watch the show with other customers, socialize and have a drink. By doing this weâ€™re creating the ultimate Moda Operandi experience for our returning customers, as well as introducing the company to prospects that could possibly become customers.
COMPANY MANAGEMENT Lauren Santo Domingo: Co-founder
One of the most authoritative figures on New York’s fashion circuit,
a muse to feted fashion designers such as Proenza Schouler and featured on Vanity Fair’s International Best Dressed List, Lauren Santo Domingo co-founded Moda Operandi in 2011. Raised in Greenwich, Connecticut, she received her education at the University of Southern California and began her career at Vogue, where she is now a contributing editor. She brings her extensive experience and industry relationships to Moda Operandi.
MISSION: “Create the most exciting, curated shopping experience that helps our members express their style in life.”
COMPANY MANAGEMENT Deborah Nicodemus: CEO
Deborah Nicodemus is the CEO of Moda Operandi, where she oversees
the business strategy and overall operations of the company. Deborah has extensive merchandising and brand management experience across several international luxury brands. Most recently, Deborah served as Chief Merchandising and Marketing Officer at leading North American fine jewelry brand Maison Birks. Previously, Deborah held executive roles within the LVMH group at Donna Karan and DFS Group managing luxury retailers such a Gucci, Prada, Hermes, Ferragamo, Cartier, Bvlgari, Tiffany, and other international brands.
Only online retailer to invite clients to preorder next-season’s looks straight from the
runway. As well as an expertly curated in-season boutique. Exceptional designer offerings,
comprised of everything from premier fashion houses to emerging vanguard labels. Expect unprecedented access to ready-to-wear, luxurious leather goods, and museum-worthy fine jewelry. Moda Operandi’s dedicated personal style provide the most bespoke services in luxury shopping, attending to our client’s every need, from expert styling advice to tailored wardrobe recommendations. With a sophisticated suite of high-tech meets high-touch services.
ORGANIZATION STRUCTURE Founder/ Creative Director: Lauren Santo Domingo Co-founder: Aslaug Magnusdottir Chief Executive Officer: Deborah Nicodemus (180K) Chief Financial Officer: Hoddi Hafsteinsson (180k) Chief Marketing Officer: Evelyn Kyung Kim (165k) Vice President of Sales: Nancy Zhang (137k) Vice President of Merchandise Planning and Operations (160k): Robert Kim Senior Art Director: Lilian Montes (89k) Fashion Editor: Caitlin Burke (70k) Assistant Fashion Editor: Charlotte Bentley (50k+) Buyers (50k+) Stylists (25) (40k+)
Founder & Creative Director: Lauren Santo Domingo
CEO: Deborah Nicodemus
CFO: Hoddi Hafsteinsson
CMO: Evelyn Kyung Kim
VP of Sales: Nancy Zhang
Senior Art Director: Lilian Montes
VP of Merchandise, planning and operations: Robert Kim
Fashion Editor: Caitlin Burke
Buyers & Stylists
OVERVIEW Headquarters: New York, NY Founded: 2010 by Lauren Santo Domingo & Aslaug Magnusdottir Company Type: Privately Held Company Size: 51-200 Employees CEO: Deborah Nicodemus Showroom Locations: Moda Madison and Moda Muse London
KEY COMPETITORS Farfetch Matches Fashion Mytheresa.com Net-A-Porter Lyst Gilt Group
SWOT Strengths: - Brand Reputation - Expansion Strategy For Showrooms - Internationality - Quality Products - Customer Service - Client Knowledge And Their Strategy For Acquiring It (Stylists) More Interested in Client Satisfaction Rather Than Market Share Acquisition High Retention Rate - Netsuite And New Relic Deep Data Utilization Curates Showroom to Client’s E commerce Data “When A Woman Walks In [The Showroom], We Know Everything About Her.” (Bof) - Uses Data From Pre-Orders To Inform Inventory Buys - Speed To Market - Unique Offering In The Luxury Market First Online Retailer To Sell Directly From The Runway
- Awareness of Showrooms - Limited Time Period To For Customers To Book Items To Try Them - Meeting Trunk Show Minimums - Difficult Returns - Online Shopping Fit Communication With Stylists Online Transactions And Delivery OPPORTUNITIES: - Capitalize On Shifting (Luxury) Consumer Expectations Towards More Personalized Experiences. - Further Organic Client Acquisition - Additional Designer Collaborations - Consumer Expectations For Collaboration - Expanded Showrooms (Brick and Mortar Presence) “94% Of All Global Luxury Sales Still Taking Place In-Store” (Fflur Roberts, Head Of Luxury Goods For Euromonitor) THREATS: - Global, Economic Impacts For The Industry At Large - Business Model Is Easy To Copy - Continued Emphasis On Online Luxury
Net-A-Porter Matches Fashion
PRICE/ACCESSIBILIT Y - Luxury Price Point - Average Basket Is:
$1,400 Online, 7 Times A Year (WWD)
$4,800 In Showroom (Wwd)
- The Site Caters To Ultra-High Net Worth Consumers - By Comparison, Average Order Value At Net-A-Porter In 2016 Was $687 - 50% Payment Up Front; Full Payment Required After Fulfilled Order Arrives From The Designer CHARACTERISTICS - Exclusivity - Personalization - Customer Service
DISTRIBUTION CHANNELS CURRENT:
FURTHER EXPANSION PLAN:
- Online - Mobile App - Social Media (Instagram) - Showrooms Proven Pay For Themselves Within The First Year Also Proven To Double The Average Basket Of Clients
- 15 more showrooms in the next 5 yrs. Abu Dhabi in 2017 The Middle East Hong Kong and Seoul - 3 more locations in the Continental U.S. Texas California Florida - Canada - 3 additional locations in Europe
London Mews Showroom - Launched In September 2014 Moda Operandi Madison (NYC) - Launched in Fall 2016
Moda Operandi has a unique culture when it comes to interacting with their clients. By servicing clients and not customers, it allows them to invest in retaining relationships with individuals who are categorized as the 1% with incredible spending power. Clients are individually assigned a personal stylist amongst the “company’s 25 stylists, based in New York, Los Angeles and London, who know what’s in their customers’ closets, so they can work new pieces into existing wardrobes.” (WWD) Although tremendous emphasis is placed on retaining their current clients, they have seen 72% growth in their new client file and plan to expand their stylist roster to 80 individuals in the next 5 years according to WWD. Showrooms are curated specifically on an appointment basis for customers and scheduled through their stylist. Additionally, it was stated by Nicodemus that “serving customers in their homes accounts for 5 -10% of the business.” This once again shows the dedication from Moda Operandi to provide an ultimately luxurious and exclusive experience for their clients.
COMMUNICATION CHANNELS Contributing To The Most Exclusive Digital Omni-channel, Luxury Department Store Of The Future.
APP “How do you reach the wallets of the 1%? Via their phones, of course.” - Manages “Closet” - Provides Chat Communication With Stylist - Browse Outfits for All Occasions Curated by Your Personal Stylist INSTAGRAM - Traditional Engagement - Teamed Up With Amazon Pay’s Technology for Shoppable gallery on IG - Amazon Payment’s First Luxury Partner - Started With On-Site Option For Amazon Pay DESIGNER PARTNERSHIPS - Continuous Opportunity for Further Growth SHOWROOMS “Sophisticated suite of high-tech meets high-touch services”
POLITICAL Majority of Soho residents are considered early adopters in retail as well as technology Spending Apprehension Due To Recent Election Instability Due To Increasing Frequency In Terror Attacks Across The Us ECONOMIC
LEGAL High tax rates and differential federal rates of tax are major dampeners for business. Complicated structure of taxes and fees
Individual Debt Relatively Stable Economic Structure
Large Economy New Yorkers, On Average, Are Known For Having Larger Spend Than Others Elsewhere In The Us High Cost Of Living And Real Estate In The Region Overall Higher Operating Costs Which Includes Labor Significant Business Growth Happening In New York Right Now SOCIAL Densely populated area in the heart of Soho Variety of Entertainment Attractions beyond Retail Real Estate in that location brings in clientele with larger spend Dense population; 51,000 People Live in Soho alone
Prime area known for Residential shopping and tourism Stable Environment High Demand Broadway street is a main attraction
MARKET ANALYSIS 72% of millennials prefer to spend more money on experiences rather than material things. 86% of shoppers like to experience the stores, they like to try and test products. 85% want to have product recommendations such as ratings and feedback. 80% like buying items online that can be picked up in-stores. 78% like stores that had an online presence before opening a brick and mortar store 94% of sales are generated through stores.
TARGET MARKET CHARACTERISTICS INNOVATORS Are always taking in information (antennas up) Are confident enough to experiment Make the highest number of financial transactions Are skeptical about advertising Have international exposure Are future oriented Are self-directed consumers Believe science and R&D are credible Are most receptive to new ideas and technologies Enjoy the challenge of problem solving Have the widest variety of interests and activities.
MEET GRACE PETROVA
TARGET MARKET CHARACTERISTICS
Age: 33 Marital Status: Married Annual Income: Style: Trendy and luxurious
Have a “me first, my family first” attitude
Believe money is the source of authority
Are first in and first out of trend adoption
Grace comes from Russian descendant, she’s the second generation of her family to be born in the US, more
Are committed to family and job
Go against the current mainstream
specifically in NYC, her family makes part of the Elite of NYC. Grace went to school at NYU for Art History and
Are fully scheduled
Are up on the latest fashions
Classics, it was while attending NYU that she met Patrick, her now husband with whom she has her 2 year old son
Are goal oriented
Love physical activity (are sensation seeking)
Olivier. Though she currently doesn’t work because she’s taking care of her son, she wishes to later on open her own
See themselves as very sociable
art gallery where she can curate any art selection of her choice as well as experiences for art lovers in NYC. Patrick
Believe that friends are extremely important
who’s 45 years old, is the owner of a multinational chain of healthcare products, he has a starting income of half
Act as anchors of the status quo
a million, and has a beautiful apartment in the upper east side, with a view to central park, as well as a property in
Are peer conscious
Have a heightened sense of visual stimulation.
Madrid, Spain, and a house in Tuscany in Italy. As a stay at home mom, Grace really enjoys fashion, she is constantly
on the watch for new trends that she can adopt herself, but she isn’t afraid of trying new things. She is constantly
invited to important events due to her husband’s important position as well as her recognition in society as a socialite.
Value technology that provides a productivity boost.
DEMOGRAPHIC ANALYSIS According to Nielsen Segment Solutions
MEET CLAIRE ANSEL OVERALL
Population: 23,864 Median Age: 36.2 Median Income: $106,400 Consumer Spend: $599M Consumer Spend ($/HH): $45,202
Urbanicity: Urban Income: Wealthy Household Technology: Above Average Income Producing Assets: Millionaires Age Ranges: Age 35-54 Presence of Kids: Mostly w/ Kids Homeownership: Homeowners Employment Levels: Management and Professional Education Levels: Graduate Plus
Owns a Mercedes Eats at Chipotle Shops at Banana Republic Goes hiking/backpacking Visits Asia Uses Yelp Listens to Alternative
Age: 45 Marital Status: Divorced Annual Income: Starting at $300,000.00 Style: Sophisticated but fun Claire Ansel is a Canadian businesswoman of French descent. She was born in Montreal on the 1st of May of 1977. She grew up in a very refined family, her father was the president of the Montreal Bank, and her mother would stay at home with her sister and her. She would teach both of her daughters about protocol and etiquette, how they should behave within society, and how they should dress. It was precisely from here that Claire developed her love for high-end fashion, and traveling twice a year to Paris to visit her French family, she acquired as well a taste for Western fashion, especially Italian fashion. She went to school for economics at the University of Montreal where she graduated Magna Cum Laude. After graduation, she decided to open her consulting group where she would focus on medium-size companies. She got married at the age of 27 to her college sweetheart Jeremy, but after ten years of marriage, they decided to get a divorce. She has a 10-year-old son and an 8-year-old daughter, but since sheâ€™s always working, she doesnâ€™t get to see them as much as she wants. Nonetheless, she always goes on vacation with them where she takes them to new destinations every time.
CONCEPT AND DATE JUSTIFICATION Moda Operandi is a trusted fashion insider known for their highly editorialized shopping experiences. The purpose of the pop-up shop is to create a highly personalized luxury runway shopping experience that will further strengthen the relationship between Moda Operandi and their most dedicated clients. Moda Operandi is the only online retailer to invite clients to preorder next season’s collections, which is why the pop-up will exclusively open first to the invited guests. The attending clients will be able to watch and shop NYFW S/S 18 collections, as well as shop their pre-picked Moda Operandi closets. The pop-up will not only cater to the selected clientele but open to the public after the shows, so luxury-minded shoppers can customize designer accessories and get a taste of the Moda Operandi lifestyle.
The Moda Operandi pop-up will first open exclusively to invited guests for NYFW S/S 18 collections from Thursday, February 8th to Friday, February the 16th. The invited guests will be able to “pre-tail” shop the collections and try on their previously viewed garment selections. After the week long private shopping, the Moda Operandi pop-up will open for an additional week to the public where shoppers will have the opportunity to customize designer accessories for the S/S 18 season.
MARKETING STRATEGY In homage to couturiers, Moda Operandi is the only online retailer to invite clients to preorder next season’s looks straight from the runway. Keeping with a traditional fashion model, Moda Operandi’s marketing strategies are somewhat limited. The goal is to reach the right people, not everyone. They rely heavily on their committed clientele and strong brand image of exclusivity over mass advertisements. In the past month, Moda Operandi launched The Platform, which will be an incubator to showcase new, up and coming talent to their ultra-high net worth consumers.
LAUNCH PARTY Launch Party: The Moda Operandi pop-up shop will kick-off with a launch party consisting of twenty of the most elite editors, fashion socialites, and Moda Operandi clients. While shopping the S/S18 runway, guests will be able to enjoy cocktails from When We Were Young over casual conversations.
PUBLIC RELATIONS Our Public Relations strategy relies on hosting an exclusive event for our current customers through physical invites and personal follow ups with their individual stylists. The remainder of our promotion and PR will be dedicated to attracting the public through social media and highly sought after online publications.
VIPS In order to reach Moda Operandi’s current luxury customers, each selected guest will be extended an invitation to view designated shows through a printed invitation. The RSVP will be transacted through the individual’s personal stylist.
Walk-Ins The remainder of our audience will be reached through promotional pieces on Moda’s website, instagram, app and external digital platforms including Vogue.com and Fashionista.com.
LOCATION 120 Spring St. Soho, NYC Our chosen location is at 120 Spring Street in the heart of Soho’s biggest attractions for retail. The area is easily accessible to all of the major subway lines at Prince St, Spring St, Broadway-Lafayette St 0.22 miles and Canal St. It is a hub for tourism and foot traffic as well.
HEALTH AND SAFETY New York PESH has generally adopted all OSHA standards applicable to state and local government employment. In addition, the Commissioner has the authority to develop alternative and/or state-initiated standards to protect the safety and health of state and local government workers in New York in consultation with the Hazard Abatement Board. The procedures for adoption of alternative standards contain criteria for consideration of expert technical advice and allow interested persons to request development of any standard and to participate in any hearing for the development or modification of standards. PESH’s state-initiated standards include: - Workplace Violence Prevention – 12 NYCRR Part 800.6 - Emergency Escape and Self-Rescue Ropes and System Components for Firefighters (in cities below one million residents) – 12 NYCRR Part 800.7 - Permissible Exposure Limits – 12 NYCRR Part 800.5 - Right-to-Know – 12 NYCRR Part 820
INFRASTRUCTURE The store has two floors which can be suitable to create multiple experiences. It is located next to recognized stores such as Stuart Weitzman and Maje. Located near the subwayâ€™s yellow line, the store is a block away from Prince Station. Public transportation runs by fluidly which is an asset since it is not the easiest location to find parking. The area is easy to walk around.
The store is located a block away from the Apple store in SOHO. It is a hip area of New York City which moves a lot of people, especially young people who are fashion oriented. There are many known stores nearby, highly priced like Moda Operandi, one clear example being the Chanel store which is a block away. Additionally, the area is rich in restaurants that attract different types of clientele. La Esquina a trendy Mexican restaurant, and Balthazar a traditional restaurant are both within minutes away.
TAXES AND LAWS Purchases above $110 are subject to a 4.5% NYC Sales Tax and a 4% NY State Sales Tax. The City Sales Tax rate is 4.5%, NY State Sales and Use Tax is 4% and the Metropolitan Commuter Transportation District surcharge of 0.375% for a total Sales and Use Tax of 8.875 percent. Zoning Laws •
Zoning area: M1-5A
Zoning map: 12c
Lot area: 741 square feet
Lot frontage: 14.25
Lot depth: 52
Built in 1920
1 building/ 2 floors
Gross floor area: 1,428 sf
Land use: commercial/office buildings
Historic district: Soho-cast iron historic district
Parking Laws: From Greene St to Mercer St no parking 8am-6pm Monday through Friday (both north and south sides)
STORE COST SHEET MODE OPERANDI POP UP SHOP
CSI Division #
Overhead & Profit cost
Total Incl. O&P
Construction Cost 08 44 13 08 44 13 08 44 13 08 44 13 08 44 13 08 44 13 09 91 23
09 91 23 12 35 00 12 36 40 22 42 16
Gypsum Wall Board, 4", 12’0” H x 9'0” L Gypsum Wall Board, 4", 12’0” H x 10'6” L Gypsum Wall Board, 4", 4’0” H x 16'0” L Gypsum Wall Board, 4", 4’0” H x 4'0” L Gypsum Wall Board, 4", 10’0” H x 19'0” L Gypsum Wall Board, 4", 10’0” H x 4'0” L Pink Paint used throughout u.n.o. White Paint used on floors, 50'0" W x 12'0" L Millwork, Wooden Shelves, 10’0” H x 12’0” L x 2’0” D Millwork, Marble Countertop Sink
FF&E Round Rug Bar Stool Banquette Seating Mobile Side Table Credenza Round Banquette Sofa Round Ottoman Lounge Chair Cooler Modo 3 Sided Chandelier IC C/W Wall Ceiling Light
LED Screens Artwork Mirrors Shelving
Total per/area Grand Total
INTRODUCING MO POP UP SHOP RENDERS
FIRST FLOOR For the 1st floors’ layout we decided to go with Moda Operandi’s signature soft Pink, this way truly incorporating the brand’s aesthetic into the store. We wanted to showcase a minimal elegant composition where customers could feel at ease while shopping the accessories that are being portrayed in the first floor. At the back of the room we will be having a bar, where drinks can be order and one of the shoes reference specially curated for the Moda Operandi Pop up Shop can be customized.
SECOND FLOOR Moda Operandi is known for their showroom which is specifically curated for their most elite clientele. Basing our second floors’ design on this concept, we decided to focus mainly on Moda Operandi’s Top customers and provide them with curated product basing it on articles they have shopped before, added to their cart through our online platform and general knowledge the company has on their style. The second floor will be open to invite only attendees since this is where our watch-the-runway event is going to happen. Creating a space where consumers can watch runway shows, socialize with other socialites as themselves, and shop the runway as it’s happening.
SOURCES “UNITED STATES DEPARTMENT OF LABOR.” Occupational Safety and Health Administration, www.osha.gov/dcsp/osp/stateprogs/new_york.html. Fernandez, Chantal. “Moda Operandi Looks Beyond the Runway.” The Business of Fashion, 5 Apr. 2017, www.businessoffashion.com/articles/bof-exclusive/ moda-operandi-looks-beyond-the-runway. Schneier, Matthew. “Moda Operandi: A Haven for the Haves.” The New York Times, The New York Times, 9 Sept. 2016, www.nytimes.com/2016/09/11/fashion/ moda-operandi-madison-private-store-shopping.html. Fernandez, Chantal. “Do Digital Brands Need Physical Stores?” The Business of Fashion, 18 Jan. 2017, www.businessoffashion.com/articles/intelligence/dodigital-brands-need-physical-stores. Heinzinger, Kristen. “Moda Operandi Adds to Its Marketing, Communication Team.” Daily Front Row, 14 Aug. 2015, fashionweekdaily.com/moda-operandiadds-to-its-marketing-communication-team/. Rachelstrugatz. “Moda Operandi, Amazon, Curalate Roll Out Social Shopping.” WWD, WWD, 23 June 2017, wwd.com/fashion-news/fashion-scoops/modaoperandi-amazon-curalate-roll-out-social-shopping-10926672/. Suhrawardi, Rebecca. “E-Tailer Moda Operandi Adds Another Layer To Luxury Shopping In The Digital Age.” Forbes, Forbes Magazine, 26 May 2017, www. forbes.com/sites/rebeccasuhrawardi/2017/05/25/e-tailer-moda-operandi-adds-another-layer-to-luxury-shopping-in-the-digital-age/#4e1890b7188d. Sharonedelsons. “Moda Operandi Takes Manhattan With Town House Showroom.” WWD, WWD, 23 Nov. 2016, wwd.com/business-news/media/modaoperandi-takes-manhattan-town-house-showroom-10711043/. “Point2 Homes.” Demographics & Statistics - Employment, Education, Income Averages, Crime in Soho - Point2 Homes, www.point2homes.com/US/ Neighborhood/NY/Manhattan/SoHo-Demographics.html.
Harris, Ainsley. “How Moda Operandi Is Building The Luxury Department Store Of The Future.” Fast Company, Fast Company, 27 Apr. 2017, www.fastcompany. com/3046940/how-moda-operandi-is-building-the-luxury-department-store-of-the-future. “Moda Operandi Enjoys the Luxury of Deep Data.” New Relic, 9 Oct. 2016, newrelic.com/case-studies/modaoperandi. Harris, Ainsley. “How Moda Operandi Is Building The Luxury Department Store Of The Future.” Fast Company, Fast Company, 27 Apr. 2017, www.fastcompany. com/3046940/how-moda-operandi-is-building-the-luxury-department-store-of-the-future. “VALS™ | VALS™ Types | SBI.” Strategic Business Insights, www.strategicbusinessinsights.com/vals/ustypes.shtml. Pardon Our Interruption, streeteasy.com/building/120-spring-street-new_york. “Commercial Real Estate for Lease On Cityfeet.com.” Invalid Property ID, www.cityfeet.com/cont/listing/retail-space-for-lease/120-spring-st-new-york-ny-10012/ CF2820383. CREXi.com, www.crexi.com/properties/31681/new-york-120-spring-street. Zillow, Inc. “120 Spring St # 1, New York, NY 10012 | Zillow.” Zillow Real Estate, www.zillow.com/homedetails/120-Spring-St-1-New-YorkNY-10012/2118764741_zpid/. “120 Spring St.” 42floors.2x, 42floors.com/us/ny/manhattan/120-spring-st. “ENTER.” Claritas MyBestSegments, segmentationsolutions.nielsen.com/mybestsegments/Default.jsp?ID=20&pageName=ZIP%2BCode%2BLookup. http://0-web.b.ebscohost.com.library.scad.edu/bsi/pdfviewer/pdfviewer?vid=16&sid=33715e20-fbbb-4e4d-b866-14fe1a384eff%40sessionmgr104 http://shoutbrand.com/wp-content/uploads/2013/03/PESTpastrycafe.pdf https://segmentationsolutions.nielsen.com/mybestsegments/Default.jsp?ID=20&pageName=ZIP%2BCode%2BLookup
THANK YOU S a ra h Th e r r i e n , E l i sa L o n d o n o , E m i l y C o l e S p e c i a l Th a n k s t o Jo se l y n D o n t f ra i d f o r t h e Be a u t i f u l S t o r e Re n d e r i n g s D i sp l aye d i n t h i s P r o j e c t .