etsy manufacturing and macy’s partnership design case ...€¦ ·...

Running head: ETSY MANUFACTURING AND MACY’S PARTNERSHIP CASE STUDY 1

Etsy Manufacturing and Macy’s Partnership Design Case Study:

MAGNA FORTASSE

MAGNA FORTASSE would benefit both Etsy and Macy’s companies because it is a promising, on-

trend, and technological activewear brand that highly considers the customer’s experience and

appeals to the masses.

ETSY MANUFACTURING AND MACY’S PATNERSHIP CASE STUDY 2

Etsy and Macy’s SWOT Analysis

(See Appendix A for Abstract Summary)

Strengths

• Etsy, being an online platform, reaches across the masses and creates a global market; now,

with their partnership with Macy’s, in-store availability of Etsy products will now be

available, creating easier access to products both in-store and online.

• Etsy’s entrepreneurial business program, launched in 2015 – which educates “all

entrepreneurs to practice business in ways that regenerate people and planet” – shows that

they want to engage their sellers and help them succeed.i

• With Etsy’s new platform, Etsy Manufacturing, they now help their local artisans connect

with small manufacturers to produce their products, and consequently help them grow as a

small business, while still keeping them faithful to Etsy.

• Macy’s many attempts to drive new innovation are a promising factor that Macy’s isn’t going

anywhere and will come back to the forefront. Their projects with in-store shops like Finish

Line and Best Buy, and now Etsy, are promising to bring relevance to Macy’s.ii In addition,

their new off-price chain, Macy’s Backstage, will hopefully draw the attention of a younger

customer.iii

• Macy’s has a strong brand identity – everyone, whether they currently shop at Macy’s or not,

recognizes the company and knows what it is.

Weaknesses

• Both Etsy and Macy’s stock price has plummeted since 2015 – there is less of a demand to

buy from Etsy and Macy’s.iv Although, this could be due to the lack of consumers buying

products in general.v

• Etsy has a primarily narrow customer base – young women, ages 25 to 35.vi


• Macy’s, as well, has a narrow customer base – women of the age 40 to 50.vii

• Macy’s has an outdated infrastructure. In order to create new relevance and hype for the store,

they would need to invest in their real estate infrastructure, i.e. upgrade their stores.

Opportunities

• Target millennials. The end-use customer for this collaboration should be the millennial –

they are the future and they are the ones that are going to buy into Etsy and Macy’s. (See

Appendix B for Primary Research).

• The ever-so-growing and popular activewear and healthy-living market will prompt

millennials to buy.viii

• “Shoppers are choosing experiences over stuff.”ix This is an opportunity for Macy’s to create

a great in-store shopping experience.

• Bring Etsy onto Macy’s website – this will promote Etsy’s online presence even more, and

will help bring attention from a younger customer base to Macy’s as well.

• Introduce a consulting firm, such as Deloitte, to help integrate Etsy and Macy’s business

programs and help drive innovation – also, with Deloitte’s new business deal with Apple,

together they can help bring Apple technologies into Etsy and Macy’s business setting.x

• Bring new technology into Macy’s and Etsy, both in regards to activewear fabrics as well as

in-store shopping experiences. This will help draw the attention of a younger customer base.

(See Appendix C for further development).

• Bring in popular athletes to the store in order to draw attention to Macy’s and Etsy – have

athletes do a meet-and-great, signing, pictures, and more.

• It’s not too late to start with the athleisure/healthy-living lifestyle market – Millennials are the

customer to draw in, and statistics show that they are the ones with the money willing to

spend on a healthy living lifestyle.xi


• Bring in the customization of products that Etsy provides into Macy’s as well. (See Appendix

D for further development).

Threats

• Other brands may have similar business models, i.e. Lululemon and Bandier.xii

• Cannot predict consumers spending patternsxiii – we don’t know if customers are going to

increase their spending in apparel, but we do know millennial customers want an experience,

and are willing to spend in the athleisure market.xiv

• If Macy’s were to upgrade their stores, a potential threat would be alienating their current

customer base and current revenue stream.

Resulting Strategy

Upon completion of this SWOT analysis made relative to Macy’s and Etsy’s competitors,

both companies would benefit by inputting a new, on-trend, and technological activewear brand as an

all-encompassing shopping experience. Macy’s should update their real estate infrastructure buy

upgrading their store design, streamlining their designer brands and cutting down on the amount of

designers (quality over quantity), and create in-store experiences for both their current customer base

and their newly targeted customer base. Macy’s has a strong brand name and identity – everyone

knows what and who Macy’s is – but if they want to grow as a company they need to reinvent their

infrastructure in a way to keep their current customers and grab new ones. With the introduction of

Etsy and a new, on-trend, all-encompassing activewear brand, Macy’s can create experiences for both

the Baby Boomers generation, as well as the Millennials. For example, they can create experiences

where both a mom and a young adult daughter want to go together to shop, buy some clothes and

presents, get some food, grab a drink, and have a nice experience. With the introduction of an

affordable, technological, and high-quality athleisure brand, both Macy’s and Etsy can help each

other grow and thrive.


Brand Name: MAGNA FORTASSE (See Appendix E for brand name meaning)

Positioning Statement: For millennials that like on-trend, personalized clothing and experiences, a

refreshing, new design brand MAGNA FORTASSE promises engaging, technological apparel and in-

store experiences.

MAGNA FORTASSE was born with the dire need for an appealing in-store experience that

consumers will want to buy into. The biggest trend on the market right now is the activewear/healthy-

living lifestyle, and it will continue to grow. MAGNA FORTASSE, a new apparel design brand

satisfies the need for high-tech, wearable clothing that can be worn in the gym, to a trendy lunch, to

the workplace. It provides affordable, transitional clothing with relevant design details, pockets, and

functionalities. Millennials want the ability to wear on-trend clothes to the workplace, and then

transition to the gym or the park. They want comfortable, personalized clothing from a brand that

provides an engaging lifestyle and experience. MAGNA FORTASSE will provide a lifestyle for this

customer to live in – run clubs on the weekends, adventurous traveling opportunities for

vacations/trips, athlete meet-and-greats, personalized training sessions, and studio workouts. All this

will be provided in addition to the in-store shopping experience where the customer will be

surrounded by new technologies, engaging music, and coffee shop seating with food and drinks. In

addition, MAGNA FORTASSE will donate a small portion of their revenue to relevant proceeds in

order to enhance the customer’s conscience and spending quality. This will work in the Etsy Macy’s

Shops because Etsy and Macy’s need the in-store experience that will drive millennials to their

stores. Macy’s needs the younger customer base that MAGNA FORTASSE and Etsy will target with

the engaging experiences and new technologies that everyone enjoys and looks for. Etsy needs a new

and innovative design brand that isn’t as crafty as their previous sellers; this will target a new

customer into Etsy that is more technological and mature. Combined with Etsy and Macy’s, MAGNA

FORTASSE will bring in customers that want to engage in-store and buy into products that provide a

quality lifestyle.

MAGNA FORTASSE

MAG

NA FO

RTASSEMAG

NA

FORT

ASSE

I DO IT FOR THE ENDORPHINESI DO IT FOR THE GREAT PERHAPS

I DO IT FOR the lifestyle

sweat wicking4-way stretchlightweight

durablequick drying

anti-stinkcomfrotable

newest technologies

Inspiration

logo Hang tag

front

back

Color story (as illustrated)

other colorways for customer to customize

fabrics

OTHER FABRIC COLORWAYS FOR CUSTOMER TO CUSTOMIZE

VISCOSE/LYCRA KNITNYLON MESHSILK SPANDEX KNIT

POLYURETHANE 65 POLYESTER 35VISCOSE RAYON NYLON MESH SILK JERSEYSILK JERSEY

MODAL KNIT SILK RIBBONVISCOSE KNITPOWER MESHNYLON BACKED MESH

SILK JERSEY SILK JERSEY SILK JERSEY SILK JERSEY SILK JERSEY SILK JERSEY

SHEER MESH INSERT

MAGNA FORTASSE

MAG

NA FO

RTASSEMAG

NA

FORT

ASSE

HIDDEN INTERIOR POCKET INVISIBLE ZIPPER POCKET

CONTRAST BIAS BINDING

GROS GRAIN SILK RIBBON

MAGNA FORTASSE

MAG

NA FO

RTASSEMAG

NA

FORT

ASSE

REFLECTIVE TAPE

NOSO BONDING TECHNOLOGY FOR HEM FINISH

SKIRT/SHORT YOKE FABRIC:

SILK JERSEY

SKIRT/SHORT SELF FABRIC:

POLYURETHANE 65POLYESTER 35

CONTRAST COLOR FOR BODICE FABRIC:

SILK JERSEY

BODICE SELF FABRIC:

VISCOSE RAYON

BODICE COMBO FABRIC:

NYLON MESH

**SKIRT IS LINED WITH A PAIR OF SHORTS MADE OF SILK SPANDEX

MAGNA FORTASSE

MAG

NA FO

RTASSEMAG

NA

FORT

ASSE

MAGNA FORTASSE

MAG

NA FO

RTASSEMAG

NA

FORT

ASSE

HIDDEN INTERIOR POCKET HIDDEN INTERIOR POCKET

SHEER MESH INSERTS

SHEER MESH INSERTS

OVERLAP POCKET

REFLECTIVE TAPE

REFLECTIVE TAPE

SELF FABRIC:

SILK SPANDEX KNIT

CONTRAST COLOR FOR SPORTS BRA FABRIC:

VISCOSE/LYCRA KNIT

COMBO FABRIC:

NYLON MESH

MAGNA FORTASSE

MAG

NA FO

RTASSEMAG

NA

FORT

ASSE

MAGNA FORTASSE

MAG

NA FO

RTASSEMAG

NA

FORT

ASSE

INVISIBLE ZIPPER POCKET

GROS GRAIN SILK RIBBON ALONG SIDESEAMS

MESH INSERTS

ATTACHED KNIT GLOVES WITH THUMB HOLE

NOSO BONDING TECHNOLOGY FOR HEM FINISH

REFLECTIVE TAPE

PANTS SELF FABRIC:

MODAL KNIT

PANTS COMBO FABRIC:

SILK RIBBON

JACKET SELF FABRIC:

NYLON BACKED MESH

JACKET COMBO FABRIC:

POWER MESH

JACKET COMBO 2 FABRIC:

VISCOSE KNIT


Appendix

Appendix A

Abstract

Based upon this SWOT analysis relative to pertinent competitors and further research about Etsy and

their new partnership with Macy’s, both companies would benefit by introducing an activewear brand

to their infrastructure. Because of the decline of both Etsy and Macy’s companies since 2015, it is

apparent that millennials are not shopping at Macy’s. As a result, a new, fresh, and on-trend

activewear brand would help raise revenue, publicity, and traffic to both companies. A healthy-living

lifestyle, prompted by the popular exercise boutiques, juice bars, and organic food trends, is a very

prevalent way of living at the moment; consequently, activewear clothing is in it’s highest demand

and is being worn before, during, and after a workout – from the gym to the grocery store to a lunch.

Millennials no longer want the big name brands with big logos and high prices; they want quality, on-

trend clothes that have a personal style. And even more so, they want to buy from a company that

promotes quality and is an all-encompassed lifestyle company – a company that not only sells

clothes, but also houses events and activities to partake in, something that creates an engaging

shopping experience. They want to be on the verge of the newest technology; they want to experience

the future, and doing this while shopping will help drive the desire to buy products. (See Appendix F

for further facts). Therefore, the emergence of such a new, technological, and on-trend brand into

Etsy and Macy’s would help popularize the two companies and consequently drive revenue and

relevance.

Appendix B

Primary Research – In-person Interview

Upon visiting the Etsy store in Macy’s 34th street Herald Square, NYC, I discovered that Etsy needs

to have more retail space to draw in more customers and make their presence known. In addition, it

confirmed my case that Macy’s needs to upgrade their stores, streamline the designers they sell, and


create an enjoyable shopping experience, which I think “Macy’s Chef Street” is a great start to.

Lastly, it proved to me that an innovative, technological, and activewear shopping option would be

very beneficial to both Macy’s and Etsy.

Questions asked:

• How do you feel about department stores? What do you look for in a department store? What

is your ideal department store?

• How do you feel about the activewear/healthy-living lifestyle trend? Which companies do you

like and why?

• Specific to Macy’s employees: What do you think is selling at the moment and what is not?

Who is coming into this store and why? What products should Macy’s/Etsy carry?

Questions Answered:

• Anna, age 20: “I hate shopping at department stores. I get overwhelmed with everything – the

crowds and all the merchandise and the noise.”

• Ryu, age 23: “I think technology in the future is how department stores should innovate their

companies. Everyone likes the newest technology.”

• Julliana, age 23: “I want the experience. I buy Lululemon clothes because I also go to their

run clubs and free yoga on the weekends.”

• Perri, age 20: “I want a store that I can drink coffee, listen to music, try on some clothes, and

enjoy my time there.”

• Tanja, age 55: “I want a store where I can go with my daughter to not only shop for me, but

she can shop for herself as well. One where we can have a fun time together.”

• Macy’s Employee, 34th street, NYC: “In this store in particular, mostly parents and older

people come here. Some children and teenagers. Not as much young adults.”

• Macy’s Employee, 34th street, NYC: “People buy from the main brands, like Calvin Klein.”


• Macy’s Shopper, woman, age about 30: “They have an Etsy store here? That’s great!”

• Macy’s Shopper, woman, age about 45: “I love that Macy’s has Etsy here. I wish it were

bigger though – had more of a variety and options.”

Appendix C

New Technology Ideas

New and exciting technology will bring in new customers to both Macy’s and Etsy. The store could

draw the attention to millennials by creating a high-tech experience. The dressing rooms could have

Ipads to help the customer when he/she is trying on clothes – with one touch of the Ipad, they could

ask for a salesperson to grab the clothing in a new size or a different color. Also, all online shopping

could be done on computers in the store while they are sipping on coffee or eating a snack.

Appendix D

Customizing the product

Etsy is a great company because a lot of the products are customized and personal to the buyer. This

new activewear brand should bring this in to Macy’s and Etsy by personalizing the clothing –

customizing the product that the consumer wants to buy in order to add a personal taste/style to it.

*The customer can pick out what he/she wants, personalize it, and come back in a couple hours or the

next day and it will be ready – promotes having other activities to do in-store while the customer

waits. (Example: Lululemon Athletica in Soho personalizes all hems in-store and can be picked up

after an hour or two).

Appendix E

MAGNA FORTASSE Meaning

MAGNA FORTASSE comes from the phrase “Great Perhaps” in Latin. The last words of poet

Francois Rabelais were, “I go to seek a Great Perhaps.” The pursuit of this Great Perhaps is what

gives meaning to life – the desire to live your life to the fullest and not wait one second to enjoy


living it. This was an inspiration of mine for this new design brand to be a fulfillment in consumers

lives – living a fulfilling lifestyle through MAGNA FORTASSE. Consumers can experience life and

an in-store experience through this brand’s newest technologies, engaging lifestyle, and enjoyable

atmosphere.

Appendix F

Facts (According to “Millennials Infographic” by Goldman Sachs).

• “Millennials’ affinity for technology is reshaping the retail space. With product information,

reviews and price comparisons at their fingertips, Millennials are turning to brands that can

offer maximum convenience at the lowest cost.”

• “When marketing to Millennials, a strong brand isn’t enough to lock in a sale.” 40-80% of

Millennials tend to disagree to the phrase, “I always try to buy branded products.”

• “For Millennials, wellness is a daily, active pursuit. They’re exercising more, eating smarter

and smoking less than previous generations. They’re using apps to track training data, and

online information to find the healthiest foods. And this is one space where they’re willing

to spend money on compelling brands.”

• “As their consumption in other areas drop, they’re willing to pay more for athletic gear.”

Bibliography

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Endnotes

iLeinbach-Reyhle, Nicole. "Etsy Launches First Ever Shop At Macy's In New York City.” ii Wahba, Phil. "Macy’s Is Teaming up With Etsy to Win Over Millennials." iii Halzack, Sarah. "Macy’s Dismal Earnings Are a Bad Sign for the Whole Retail Industry." iv Wahba, Phil. "Macy’s Is Teaming up With Etsy to Win Over Millennials." v Halzack, Sarah. "Macy’s Dismal Earnings Are a Bad Sign for the Whole Retail Industry." vi Smith, Craig. "40 Amazing Etsy Statistics." vii Lutz, Ashley. "Macy's Wants To Dramatically Change Its Core Customer." viii "Millennials Infographic." Goldman Sachs. N.p., n.d. Web. 04 Oct. 2016. ix Halzack, Sarah. "Shoppers Are Choosing Experiences over Stuff, and That's Bad News for Retailers." x Weinberger, Matt. "Apple Just Made a Huge Deal to Push the IPhone into Big Businesses." xi "Millennials Infographic." Goldman Sachs. N.p., n.d. Web. 04 Oct. 2016. xii Smith, Erin Geiger. "The Fitness Store Challenging Lululemon With $400 Yoga Pants." xiii Loeb, Walter. "Why Don't Millennials Want to Shop at Macy's?" xiv "Millennials Infographic." Goldman Sachs. N.p., n.d. Web. 04 Oct. 2016.

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