French Connection Analysis and Rebranding

FRENCH CONNECTION Ines Maria Alvarez, Elisa LondoĂąo Ochoa, Whitney Dore and Nicole Cheong

Mission statement “To create well-designed fashionable clothing that appealed to a broad market.

Offers a fashion-forward clothing range with a quirk spin on design, priding itself on a quality and affordable price.�

Development • Known for variety in product – Woman's wear – Man’s wear – Home decor • Known and successful for FCUK campaign • Released in 2000 • Became logo and slogan of French Connection • Company expanded into USA market • 2005 US American Family Association boycotted FCUK products • Slogan used within stores promotion and in UK only • 2016, FCUK slogan back worldwide

Target Audience • Wide target audience • 17-35 who are appreciative of brand leading edge of high fashion • Looking for quality and style • Generation X and Y

Competitors

- 36 Mil. In Income revenue - Clear growth pattern - Sales increase of 20% - More sophisticated design aesthetic - Better sales placement (department stores like: Neiman Marcus, Bloomingdales, etc.)

- More upscale clientele- Luxury retail Similarities: - Target market - Quality of garments - Average price of garments - British Companies

- Recent majority stake sale - Valued at £325 Mil. - Owned and run by founder David Reiss- Clear growth in sales and retail stores- Increasing reputation - Sales increase by 10% Similarities: - Target market - Quality of garments- Design Aesthetic - Average price of garments - British Companies based in the UKRetail store chain - Founded in the 70’s - ASOS as a distribution channelMenswear and women’s wear - Marketing strategies

+ Quality

Low Price

High Price

- Quality

Challenges •

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In this economic climate, customers have tightened their purses and have been spending significantly less than in previous years Falling sales caused by high prices, which cannot compete with lower priced competitors.

Inability to make customers purchase the goods once they visit the stores. Too many markdowns, which cheapens the company’s brand Reported a loss for three consecutive years.

Solutions • Taking a more environmentally friendly approach to differentiate the brand from its competitors • Cutting back on the amount of markdowns can help repair and enhance the brands image • Identify and focus on their core customer.

• Train sales staff on effective methods to reach out to this core customer while they are shopping to ensure they make a purchase.

Strengths • • • • • • •

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Successful Brand Advertising.

“FUCK” (2000) “This is Man”/”This is Woman” Strong Marketing Strategy.

Worldwide Brand Awareness/Global Market Brand.

Online Shopping – Men, Women, Children.

Free Shipping – orders over $100.

Free Returns Strong Brand Identity.

Wide-ranging Brand Portfolio Visual Merchandising.

Award-Winning windows, advertisements, campaigns.

Minimalistic stores – products stand out.

Blog Styling/Trends.

Events.

Food B.T.S.

Weaknesses • Poor reception of Spring 2015 collection. £7.9M Profit Loss.

• Negative Earnings after “FCUK” fad ended.

• 11% decrease in Market Share (2013) • £10.9M loss in Revenue (2015) • £6.8M loss in Gross Profit (2015) • 13 Store closures in 2015.

– UK=6 – US=7

• Middle-Upper Price Points. Excessive Discount.

– Lacking appeal core target audience.

– Limited choice of product designs.

– Non-Competitive Price Strategy.

• Controversial Advertising.

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Re-identify Core Customer.

Improve PR relations.

Re-understand their wants, needs, & price points.

Ensure ranges are well priced – Price Points must be value for money.

Satisfy spending needs of target market.

Lower retail prices.

Better focus on Licensed Products.

Investing & Innovating in online facilities – creating a seamless Multi-Channel Shopping Experience..

Marketing (Social Media) needs to adapt towards a media-savvy consumer.

Opportunities • • • • • • •

Lead with Quality & Design.

Design Ethos – to build the story of the collection.

Re-appearance of FCUK logo in 2016.

Move towards the direction of - Styling & Design.

Focus on the performance of its UK stores.

Refurbish Stores - customers can enjoy a more premium experience.

Consumer Awareness & Customer Service improvements/investments.

In-store Services.

Exclusive Ranges.

Limited/Well-Targeted Promotions.

Threats • Influx of other High-Street brands.

– Stronger USPs. – Price Points are lower.

– Increased Competition.

• Lower - market share, profits, & sales.

Customers prefer value Retailers.

• Economic Climate fluctuations.

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– Unstable Markets.

• Currency Appreciation/ Depreciation.

• Non-Fixed Disposable Incomes

Promotion: Advertising channels, such as social media (i.e. Instagram, Facebook, Twitter) as well as more traditional print methods in magazines. Also web advertisements by sidebar ad space on popular websites.

Price: Due to the shift to a more environmentally

approach, the price of the goods will need to go up.

Price increase varies based on the good and the means necessary to produce it.

Product:

Clothing, accessories, watches, perfumes, toiletries, and glasses.

People: Generation x and y. These customers are between 17-35 and are looking for quality and style.

Place: Stores in high traffic areas of city’s and in

various malls across the United Kingdom, Ireland, United States, Canada, Australia, Europe, Middle East and Far East. French connection also has a large online site

Environmentally Friendly • Source environmentally friendly materials • Only partner with factories that pay laborers a fair wage and provide safe working conditions • Include a diagram under each garment that shows the real costs that go into producing said garment. This will help customers understand the math that goes into our final price • Ensure that disposal of excess waste is handled properly and even recycled when possible

S/S 2017