Prepared by Tiffany Chang / Chris Zhang / Sampson Su

FM225-216 Fashion Merchandising - Term Project

Hello!Tiffany Chang2 Years full-time experience in fashion marketing & PRCustomer Profile / Trend Forecast / Assortment / Marketing

Chris ZhangFashion Design and Engineering MajorCompany Introduction / Business Overview / Floor Plan

Sampson SuMajor in both fashion design and fashion managementRetail Math / Merchandising / Strategic Planning / Customer Service

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AGENDA

▣ INTRODUCTION○ Objective○ Introduction of Barneys○ Customer Profile○ Fashion Trend Forecast for Spring 2017

▣ BUYING & MERCHANDISING○ Assortment Plan○ Classification Plan○ Pricing Strategy & PO○ 6-Months Plan

▣ FLOOR PLAN

▣ ADVERTISING & PROMOTION

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1.INTRODUCTION

ObjectiveIntroduction of Barneys

Customer ProfileFashion Trend Forecast for Spring 2017

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OBJECTIVE

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▣ Consolidate our knowledge and skills of merchandising concepts that we

have learned through this semester, like store layout and merchandise

presentation.

▣ Experience the real world of a planner, buyer and merchandiser by

choosing vendors, selecting the right merchandise, creating price

strategy...etc.

▣ Share different responsibilities and learn how to cooperate with others

effectively and productively.

INTRODUCTION OF BARNEYS

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▣ New York based luxury specialty retailer

▣ Major departments: women’s and men’s

ready-to-wear, accessories & shoes

▣ 70% of their product is directly imported

from Italy

▣ Top competitors: Bloomingdales, Saks Fifth

Avenue, Nordstrom and Neiman Marcus.

▣ 31 stores in United States

▣ NYC, Boston, Philadelphia, Chicago,

Seattle, San Francisco, LA, & Las Vegas

▣ Average store area is 107,583 sq. ft.

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INTRODUCTION OF BARNEYS

West Coast● Brighter colors● Fancier and sophisticated designs● More willing to purchase small

pouches and clutches● Suburban area● Car as the main transportation

East Coast● Darker colors● Simple and minimalistic designs ● Prefer to invest more money in buying

large bags like totes and backpacks● Urban area● Public transportation

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▣ Sophisticated city dwellers

▣ 30 - 55 years old

▣ Middle-high annual income

($70,000 ~ $90,000)

▣ Accessories = taste, social status

▣ Fashion-forward on runway

collection & new designers

▣ Don’t want to be like majority

▣ Style > Preference of designers

& brands

CUSTOMER PROFILE

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TREND FORECAST OF SPRING 2017

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Miniature Handbag

+ Glitter Embellishments

TREND FORECAST OF SPRING 2017

Saddle Bag

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Small Structural Bucket Bags

TREND FORECAST OF SPRING 2017

Backpacks

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2.MERCHANDISING & BUYING

Assortment PlanClassification Plan

Pricing Strategy & PO6-Months Plan

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ASSORTMENT

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▣ Spring 2017

▣ Broad-and-shallow assortment

▣ Classification = 5 brands

○ 3.1 Phillip Lim

○ Chloé

○ Maison Margiela

○ Givenchy

○ Loewe

▣ Handbag + Small leather goods

ASSORTMENT - 3.1 Phillip Lim

$950 (S) $1,200 (L) $850

$1,200

$950

$550 $710$380

$710 (S) $950 (L)

ASSORTMENT - CHLOE

$1,050$2,500

$2,750

$2,500

$1,350

$2,100$1,550 $1,350

$1,350$1,550

$1,200

$1,750

$2,100

ASSORTMENT - LOEWE

$1,380

(S)$2,550 (L)$2,880

$1,880

(L)$2,080 $980

$680

$2,080

(S)$1,050

$1,880

$1,880

$2,880

$1,380

ASSORTMENT - GIVENCHY

(S)$1,450 (L)$2,750

$2,050 $1,450

$1,750

$2,550 $2,250

$2,550

$2,250 $2,250

$2,250

ASSORTMENT - MAISON MARGIELA

$4,500

$2,880

$3,000

$1,800

$1,800$1,800

$1,660

$1,500

$1,500 $1,500

$2,200

$2,200$2,200

CLASSIFICATION

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CLASSIFICATION

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Total key item retail dollar: $3,450,300 Total key item percentage: 42% (of total retail $)

CLASSIFICATION

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PRICING STRATEGY

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Retail Price $2,750 $2,550 $2,250 $2,050 $1,750 $1,450

Givenchy

Maison Margiela

Retail Price $4,500 $3,000 $2,880 $2,200 $1,800 $1,660 $1,500

Retail Price $1,200 $950 $850 $760 $710 $550 $380

3.1 Phillip Lim

PRICING STRATEGY

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Retail Price

$2,750

$2,500

$2,100

$1,750

$1,550

$1,350

$1,200

$1,050

$680

$550

Retail Price

$2,880

$2,800

$2,550

$2,080

$1,880

$1,380

$1,050

$980

$680

$550

$450

$350

LoeweChloé

PURCHASE ORDER

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DELIVERY MONTH February

START SHIP DATE: 2/1/17

CANCEL BY DATE: 2/15/17

DISC % None Offered

Styles A stores B stores Total Units

Total Cost

TotalRetail

CMU%

50 114 108 1110 $518,370.00 $1,749,750.00 70.4%

Loewe

PURCHASE ORDER

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Styles A stores B stores Total Units

Total Cost

TotalRetail

CMU%

41 111 105 1080 $460,920.00 $1,546,050.00 70.2%

Chloé

Givenchy

Styles A stores B stores Total Units

Total Cost

TotalRetail

CMU%

43 111 117 1140 $688,680.00 $2,332,500.00 70.5%

PURCHASE ORDER

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Styles A stores B stores Total Units

Total Cost

TotalRetail

CMU%

17 78 78 780 $542,910.00 $1,848,000.00 70.6%

Maison Margiela

3.1 Phillip Lim

Styles A stores B stores Total Units

Total Cost

TotalRetail

CMU%

39 87 108 975 $231,180.00 $800,100.00 71.1%

$ 8,276,400Total retail dollar is...

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$ 2,442,060Total cost dollar is...

70.49%Cumulative markup is...

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Plan Spring 2017 February March TOTAL

BOM Stock $24,024,950.00 $8,804,492.00 $32,829,442.00

Minus Sales $19,580,400.00 $10,895,680.00 $30,476,080.00

Minus Markdowns $3,524,850.00 $2,035,600.00 $5,560,450.00

Minus shortage $391,608.00 $249,540.00 $641,148.00

Plus receipts $8,276,400.00 $5,569,400.00 $13,845,800.00

Equals EOM Stock $8,804,492.00 $1,193,072.00 $9,997,564.00

average stock $11,340,838.00

stock turn 2.7

markdown % 18.2%

shortage % 2.1%

6 MONTH PLAN - Barneys New York

3.FLOOR PLAN

Cluster A & Cluster B

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Store Cluster A (West Coast)

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Loewe Givenchy

Maison M

argielaStorage

3.1 Phillip Lim Chloé

Cashier

$950.00

$710.00

$950.00$1,880.00

$1,880.00

$2,080.00

Tier Table

$1,050.00

$2,500.00

$2,550.00

$1,050.00

$4500.00

$550.00

Showcase Showcase

$850.00

$550.00

$1,450.00

$680.00

$760.00

$550.00 $650.00 $1,350.00 $350.00

$680.00

$680.00

$680.00

$380.00$450.00

$550.00 $350.00

$1,660.00

SLG Showcase

Four-way Stands

$2,100.00

$2,100.00

$1,350.00

$1,350.00

$1,550.00

$1,350.00

$1,550.00

$1,350.00

$2,050.00

$2,050.00

$1,750.00 $1,750.00

$1,750.00

$2,750.00$2,750.00

$2,750.00

$1,450.00$1,750.00

$2,750.00

$1,750.00

Wall Fixture (Cluster A)

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Givenchy

Store Cluster B (East Coast)

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Loewe

Givenchy

Maison Margiela

Storage

3.1 Phillip Lim

Chloé

Cashier

Givenchy

3.1 Phillip Lim

$2,250.00

$1,450.00

$950.00 $950.00

$950.00

$1,450.00

$2,550.00

Maison Margiela

Loewe

$2,200.00

$4,500.00

$680.00 $1,880.00

$2,880.00

Tier Table & Platform

Chloé

$1,350$1,350

$1,350$1,550

$1,350

$1,550

$1,380

$1,380$1,380

$980

$2,750

$2,050

$1,450

Loewe

Givenchy

T Stands

$760.00

$550.00$650.00

$380.00

$350.00

$1,660.00

$680.00

$680.00

$680.00

$550.00

$1,350.00$680.00

$1,450.00

SLG Showcase

Wall Fixture (Cluster B)

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Givenchy

Maison Margiela

Givenchy

4.ADVERTISING & PROMOTION

Non-holiday PeriodHolidays

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Non-holiday (March, June)▣ Magazines 2-pages print ads

(Vogue, ELLE, Harper's Bazaar, Marie Claire)▣ Social media

(Facebook, Instagram, Twitter)▣ Out-of-home advertising

(Billboard, bus stop, taxi)

ADVERTISING & PROMOTION

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Holiday ▣ The purpose of holiday marketing is to attract more customers to

the store by creating a thematic promotion.

ADVERTISING & PROMOTION

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▣ Valentine’s Day2/2-2/14

▣ Mother’s Day5/4-5/14

- The main forces that drive our sales.

- Remind our target customers to stop-by.

- Take a look at the gift choice we will offer.

Holiday ▣ Magazine print-ad

○ Valentine’s Day - January and February issues○ Mother’s Day - April and May issues

ADVERTISING & PROMOTION

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Holiday ▣ “Pink Bag Festival” store event for

Valentine’s Day○ Window display pinky bags○ Fashion blogger - Olivia Palermo○ Demonstration of how to match

pink bags to your daily outfit.

ADVERTISING & PROMOTION

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Holiday ▣ Online marketing

○ Google keyword (SEM)○ Facebook advertising

▣ Direct marketing○ Email marketing○ Catalogues

ADVERTISING & PROMOTION

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Thank You

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Q&A

References

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● Colour Direction Women S/S 17 – Pause. (2015, June 26th). Retrieved May 2nd, 2016, from https:

//libproxy.fitsuny.edu:2167/content/board_viewer/#/59312/page/1

● Foster, C. Regal Romance – Accessories Design Capsule S/S 17. (2016, April 4th) Retrieved April 9th,

2016, from https://libproxy.fitsuny.edu:2167/content/board_viewer/#/65397/page/6

● Handbags Market in the US 2015-2019. (2015, April). Retrieved May 01, 2016, from http://www.

researchandmarkets.com/reports/3159487/handbags-market-in-the-us-2015-2019#relb2

● Inspiration Spring/Summer 2017 – Serenity. Retrieved May 2nd, 2016, from http://www.

donegercreativeservices.com/en/concept_ss17.htm

● Jacqui M. Footwear & Accessories Core Colour S/S 17 (2015, June 30th). Retrieved May 2nd, 2016 from

https://libproxy.fitsuny.edu:2167/content/board_viewer/#/59391/page/9

● Maison Margiela. (n.d.). Retrieved April 30th, 2016, from http://www.maisonmargiela.com/#about

● Overview: Development & Content. (Spring 2016). Textile View Magazine, (113), 102-103.

● Research and Markets: Global Handbags Market Report 2015 - Chanel, Gucci, Louis Vuitton, Hèrmes,

Prada, Burberry and Michael Kors Dominates the Industry. (2015, June 26). Retrieved May 01, 2016, from

http://www.businesswire.com/news/home/20150626005363/en/Research-Markets-Global-Handbags-

Market-Report-2015