Portfolio Spring 2016

Megan Rodgers Seninar in Fashion Merchandising

Dr. Jonghan Hyun

Megan Rodgers Seminar in Fashion Merchandising

Dr. Jonghan Hyun

PART ONE – COMPANY PROFILE ORGANIZATIONAL STRUCTURE & THE BRAND

Ted Baker is a publicly owned global fashion brand that began in 1988 in Glasgow, UK as a contemporary menswear store. i Since its beginnings, Ted Baker has expanded into womenswear, fragrance, footwear and accessories; and expanded from Europe to North America, the Middle East, Asia and Australia. Ted Baker is the parent and sole brand in the company with three channels of revenue including retail, wholesale and licensing. The total gross revenue for 2015 was $422.02 million dollars. As shown in the chart below, the Ted Baker brand has been showing strong global growth and development. With the expansion of stores into new markets and the launching of a new UK site, financial performance in 2015 was strong across all Ted Baker stores and e-commerce.ii

iii The Ted Baker brand prides itself on being known as “No Ordinary Designer Brand”. Ted Baker offers fashion with a quirky sense of humor as well as emphasis on quality and attention to detail. i The title of "No Ordinary Designer Brand" has enabled Ted Baker to grow from a contemporary menswear shirting store to a globally recognized lifestyle brand for both men and women.

A quintessentially British brand, Ted Baker is famed for its quirky yet commercial fashion offering, high quality design detailing and distinctive use of pattern and colour. The brand's unconventional approach to fashion, irreverent sense of humour and, above all, unswerving attention to detail appeals to style-conscious men and women who trust Ted to deliver that certain something out of the ordinary.iv Ted Baker’s in-house design team works closely

with the founder Ray Kelvin in creating each collection. The Ted Baker design team works on each collection several seasons ahead. The designers find inspiration for their prints and designs in the world around them. Made in-house with the attention to detail for which the brand is known, the prints are created from best quality fabrics and cuts.v From

embroidered details on the clothing to amusing notes on the packaging, everything that bears the Ted Baker name offers absolute quality and a little bit something special that Ted Baker’s customers have grown to love and expect from the brand. vi

COMPETITORS & PRODUCT COMPARISON Two big competitors of Ted Baker are Kate Spade and French Connection. They have similar product offerings, including the target market they appeal to and breadth of product categories they carry. Kate Spade describes its brand as crisp color and graphic prints that puts a playful spin on classic sophisticated looks. vii French Connection describes its clothing as fashion-forward designs with a quirky spin, priding itself on quality and affordable prices.viii These brands depictions have several parallels to the Ted Baker’s portrayal of its “No Ordinary Designer Label” brand title. Kate Spade is a high-end, bridge price-point, colorful brand that is Ted Baker’s competition in the United States for womenswear and menswear. French Connection is a contemporary, better price-point and one of Ted Baker’s key competitors in the UK.

ix.x These three brands offer a range of men’s and women’s work wear, weekend wear, accessories and handbags. Menswear is very competitive in price because the majority men’s clothing is classic basics rather than contingent on fashion trends like womenswear. Even though Kate Spade is generally a higher price point, Jake Spade is competitive with the prices that Ted Baker and French Connection have for their dress shirts. Womenswear prices, however, vary among the three brands depending on the product and styling. Each brand’s womenswear shows

Ted Baker $166.89

French Connection $178.00

Kate Spade $328.00

1

parallels in trends for their spring/summer collections. One of the trends each brand interpreted was the use of playful colors and textures similar to the Soft Pop trend on WGSN. This trend highlights crisp, preppy and sophisticated silhouettes complimented by energetic, bright and fun prints and designs. Ted Baker and Kate Spade, out of the three brands, definitely show numerous aspects of this trend in their Spring/Summer collections. The Soft Pop trend compliments Ted Baker and Kate Spade style and concept, out of the three brands, and you can see a delicate interpretation of it in each collection. xi The second trend interpreted by the three brands was the use of tailored

and contemporary designs similar to the Past Modern trend on WGSN. This trend highlights sculpted, feminine silhouettes flattered by romantic, opulent and refined prints and designs. The Past Modern trend compliments the product assortment of French Connection with its contemporary black dresses

and relaxed basics with elegant touches like lace, jewels and embroidery. xii PART TWO - LINE DEVELOPMENT TARGET CUSTOMER

Meet Ted Baker’s target customer, Jessica. She is 30 years old and lives in New York City in a single apartment in Greenwich Village. She works in product development at Coach, Inc. and her annual salary is around $70,000. xiii She loves to travel, runs and does yoga but has a serious sweet tooth, is considerate of the environment, takes pride in her work, enjoys a glass of wine with dinner and nights out with her girlfriends on the weekends. She is outgoing and adventurous so she appreciates clothing that is as unique and colorful as her. She enjoys that Ted Baker has a unique marketing approach that relies on its customers to be its marketing and advertising team, and heard about Ted Baker from one of her co-workers. She loves Ted Baker’s playful prints and classic silhouettes, and that her boyfriend can also wear Ted Baker’s menswear collection.

Jessica shops at Ted Baker’s 595 5th Ave location in New York City, because she always receives lovely service and adores the fun store layout. She likes to visit at least three times each season to shop new collections, refresh her wardrobe and buy those items she second-guessed the last time. On average she spends around $300 to $750 each time she visits. She is willing to pay more for the

quality, attention to detail and the service she receives while shopping at Ted Baker. When Jessica is not shopping at Ted Baker, you will find her at All Saints and Top Shop. All Saints has a nice selection of work basics to pair with other items in her wardrobe. Top Shop is where she purchases a lot of her more casual and laid back outfits for the weekend and for summer. She gets her fashion information from Fashion Me Now, Camille Over the Rainbow and The Sartorialist. As for the upcoming season, Jessica has been browsing her favorite blogs and getting

excited about mounting trends. Some of her preferred trends she has seen on her favorite fashion blogs are patchwork, animal print coats, slip dresses, pleated skirts, asymmetrical hemlines and all over prints. She has also been looking at her favorite trend forecasting website, WGSN, to see what Megatrends are going to be making an appearance in stores this autumn/winter season. She fell in love with the playful and quirky look of the Off Beat trend. Jessica is excited for bright color stories, flirty silhouettes and iridescent, digital fabrics and prints. She is hoping she will be able to find retro silhouettes with some 1930s inspiration, she is especially looking forward to fit and flare dresses, crystal embellishments, oversized parkas and slim-fitting knit tops and dresses.xiv

Camille Over the Rainbow

All Over Prints

2

TREND REPORT & FALL/WINTER 2016 COLLECTION

According to Doneger, the trends Exhibit and Memento for Fall/Winter 2016 are a combination of exciting crafty expression and wanderlust; bold and colorful, with whimsical motifs and playful bright colors that are highlighted by cultural/exotic patterns and bohemian jewel tones. xv The colors range from bold primaries and cheerful mid-tones to rich, jewel tones. The prints are playful illustrations, comic book motifs, and oversized plaid, complimented by Japanese kimono floral prints, opulent gypsy designs and other ethnic prints. Fabric is candy colored plush wool, tweed and suede supplemented by cultural jacquard, patchwork and embroidery.xvi The trends have naïve and playful baby doll silhouettes complimented by timeless and more relaxed silhouettes. For dresses, the key styles are halter, baby doll, trapeze, shirt, peasant, belted and kimono wrap dresses. For pants, the major items are ski trousers, mid-rise jeans, tweed and leather shorts. For skirts, the focus is on pencil, full, A-line, midi, crossover and ball gown skirts. For tops, the emphasis is on cropped sweaters, polos, turtlenecks, tunics, and high-neck blouses. For coats/jackets, the trending styles are the double-breasted blazer, swing coat, schoolgirl coat, trench coat, wrap coat, leather jacket and vest.xvii

Images Courtesy of: Doneger Creative Services For my Fall/Winter 2016 line for Ted Baker, I am

going to pull the bright and playful and wanderlust theme together to create a London Meets Tokyo collection. Classic kimono prints already have plenty of floral motifs that go along with the Ted Baker style; we can update these classic

motifs and create beautiful floral prints for the Fall/Winter collection. Tokyo street style is also very bright and colorful by incorporating this into our classic silhouettes we can create a unique marriage between Japanese and London fashion. A matching full skirt and crop top, embroidered trousers, baby doll dress, wrap coat and kimono style blazers are going to be key items in this collection. This collection will offer that quirky and unique touch to classic styles that Ted Baker’s customers have come to expect from its designs.

Images Courtesy of: Doneger Creative Services This concept board for the Fall/Winter 2016

“London Meets Tokyo” Collection is great inspiration because it shows both street styles, fabric, colors and fashion photography. Looking at both old and new Japanese fashion for inspiration will result in unique ways to update prints and add old style embellishments to new designs. Most of all, it will help Ted Baker introduce a new style and culture to its designs while maintaining its classic London style.

LONDON MEETS TOKYO

3

The colors and patterns used in the Ted Baker Fall/Winter 2016 collection were gathered from multiple trend reports, concept boards, and inspiration boards from Doneger and WGSN for fall and winter 2016. The fabric swatches were inspired by Doneger and WGSN reports for the upcoming seasons, and taken from Fabrics.com and AllieExpress.com. COLOR STORY

PATTERN STORY

FABRIC STORY Swatch Fabric Name Fiber Content

Shantung Sateen

100% Polyester

Washable Wool

50% Wool, 50%

Polyester

Japanese Flower Brocade Fabric

Brocade

T-Knit Ribbing

50% Cotton, 50%

Polyester

Cuddle Suede

100% Polyester

Poly Two Tone

Chiffon

100% Polyester

“LONDON MEETS TOKYO” F/W 16 LINE Ted Baker’s Fall/Winter 2016 line, “London Meets Tokyo” collection has a total of 10 garments. The line contains 2 tops, 2 jackets, 1 coat, 2 dresses, 2 skirts and 1 pair of pants.

FIVE KEY ITEMS The five key items for the collection are the tailored dress, the contrast pleat skirt, the brocade cropped trouser, the tie-waist suede jacket and the boxy jacket. These items are vital to the collection, represent the big trends for Fall/Winter 2016 and are pieces that can be mix and matched easily with each other as well as with the other items in the collection. These pieces are true to Ted Baker’s London-style by using classic silhouettes, but incorporating Japanese elements through print, embroidery and color to create a collection the captures Ted Baker’s unique personality.

Greenhouse Tea Rose Orange Blossom

Salty Sea Cherry Blossom

Fortune Cookie

Midnight Blossoms Watercolor Floral

Tailored Dress

Contrast Pleat Skirt Brocade

Cropped Trouser

Tie-waist Suede Jacket

Boxy Jacket 4

STYLE SHEETS The style sheets below are an example of what the 12 style sheets look like for the “London Meets Tokyo F/W 16” collection. These two garments are a part of the five key items.

Colors: G: Greenhouse, TR: Tea Rose, OB: Orange

Blossom, SS: Salty Sea, CB: Cherry Blossom, FC: Fortune Cookie

PART 3 – MERCHANDISING PLAN QUICK COSTING

A quick costing table was created to make sure that all 10 garments in the “London Meets Tokyo” F/W 2016 collection could be offered for the retail prices listed in the style sheets. The quick costing sheet included calculating the unit retail costs, unit costs, target fabric costs, and fabric quick costs for each of the 10 items. After completing the quick costing sheet, it was determined that all 10 garments of the collection could be offered at the retail prices listed on the style sheets. SIX-MONTH MERCHANDISING PLAN The formulas used in the six-month plan for the Ted Baker New York, NY location for the month of November 2016: Planned Sales Planned Sales = Last Year % * Season Total = 18% * $270,000.00 = $48,600.00 Retail Stock BOM Retail Stock BOM = Stock-to-Sales Ratio for Month * Monthly Planned Sale = $48,600.00 * 2.0 = $97,200.00 Markdown Markdown $ = Markdown % * Monthly Planned Sale = 2% * $48,600.00 = $972.00 Planned Purchases at Retail Planned Purchase at Retail = Planned Sales + EOM + Markdowns – BOM = $48,600.00 + $135,000.00 + $972.00 - $97,200.00 = $87,372.00 Percent of Initial Markups Percent of Initial Markups = Retail Purchases * (100%-markup percentage) = $87,372.00 * 40% = $34,949.00 EOM EOM = End of January is beginning of February, etc. = End of November is beginning of December = $135,000.00 Total Stock-to-Sales Ratio Total Stock-to-Sales Ratio = Total Stock BOM/Total Sales = $657,990.00 / $270,000.00 = 2.4 (rounded to the nearest tenth) RETAIL PLANNED PURCHASES The budget for the Ted Baker store at the 595 5th Ave location in New York City for the month of November 2016 is $87,372.00.

Style Number: AW16012

The Tailored Dress

Retail Price:

$315.00

Sizes:

Ted Size 0 – 5

(US 2 -12)

Colors: G TR SS

(Provide names of the colors right below your color chips)

Fabric Name: Washable Wool Description: Strapless, asymmetric wrap around dress with button features

(Like, “Oversized tunic sweater with bateau neckline.”) Additional: Pair with turtleneck (Ribbed High Neck) for the full look.

Style Number: AW16014

The Contrast Pleat Skirt

Retail Price:

$259.00

Sizes:

Ted Size 0 – 5

(US 2 -12)

Colors: SS+CB TR+OB

(Provide names of the colors right below your color chips)

Fabric Name: Poly Two Tone Chiffon Description: Color-contrast box pleat skirt

Additional: Jewel embellishment on the waist

5

ASSORTMENT SHEETS

Five detailed assortment sheets were created, for the key items in the “London Meets Tokyo” F/W 2016 collection. The assortment sheets chosen are of the two garments, the Tailored Dress and the Contrast Pleat Skirt, that were previously shown for the style sheets. A total inventory quantity of 122 Tailored Dress was purchased for the Ted Baker New York, NY store. The dress is available in three different colors, Greenhouse, Tea Rose and Salty Sea, and in Ted size 0 - 5. The total cost for the skirt is $15,372.00 and the total retail price, if all are sold, comes to $35,430.00. As for the Contrast Pleat Skirt, 109 were purchased in Ted sizes 0 - 5, and in two different color combinations. The total cost for the jacket came to $11,292.40 and the total retail cost, if all are sold, is $28,231.00.

6

PURCHASE ORDER

This purchase order shows that through ordering the five key items in multiple colors for the Ted Baker store at its 595 5th Ave location in New York City for the month of November 2016, I was able to stay under my retail purchase budget of $87,372.00 by spending $87.290.40. RATIOS

7

PLANOGRAM

Style # Items Colors Sizes Placement AW16005 Boxy Jacket Orange Blossom 0 - 5 LF-1 AW16005 Boxy Jacket Salty Sea 0 - 5 LF-2 AW16005 Boxy Jacket Cherry Blossom 0 - 5 LF-3 AW16004 Boxy Crop Top Midnight Blossoms 0 - 5 LM-1 AW16004 Boxy Crop Top Watercolor Floral 0 - 5 LM-2 AW16013 Full Midi Skirt Midnight Blossoms 0 - 5 LM-3 AW16013 Full Midi Skirt Watercolor Floral 0 - 5 LM-4 AW16011 Baby Doll Dress Midnight Blossoms 0 - 5 LM-5 AW16011 Baby Doll Dress Watercolor Floral 0 - 5 LM-6 AW16001 Ribbed High Neck Fortune Cookie 0 - 5 LE-1 AW16001 Ribbed High Neck Cherry Blossom 0 - 5 LE-2 AW16014 Contrast Pleated Skirt Tea Rose/ Orange Blossom 0 - 5 RF-1 AW16014 Contrast Pleated Skirt Salty Sea/ Cherry Blossom 0 - 5 RF-2 AW16012 The Tailored Dress Tea Rose 0 - 5 RM-1 AW16012 The Tailored Dress Greenhouse 0 - 5 RM-2 AW16012 The Tailored Dress Salty Sea 0 - 5 RM-3 AW16003 Hourglass-waist Jacket Red Brocade 0 - 5 RM-4 AW16003 Hourglass-waist Jacket Black Brocade 0 - 5 RM-5 AW16020 Brocade Cropped Trouser Red Brocade 0 - 5 RM-6 AW16020 Brocade Cropped Trouser Black Brocade 0 - 5 RM-7 AW16002 Tie-Waist Suede Coat Orange Blossom 0 - 5 RE-1 AW16002 Tie-Waist Suede Coat Cherry Blossom 0 - 5 RE-2 AW16002 Tie-Waist Suede Coat Tea Rose 0 - 5 RE-3

8

The planogram for the Ted Baker Fall/Winter 2016 line will have all items hung on metal bars, which matches the layout of the Ted Baker 5th Ave location. The garments are organized by color, size and hung next to garments that pair together to make the customers’ experience finding sizes and putting together outfits as simple as possible. In the middle of the two metal bars holding the garments will be four shelves that will hold the handbags for the fall season as well as decorative exotic plants that will compliment the prints and design of the collection. Above both bars will be a shelf that will hold some shoes from the fall season and decorative exotic plants on both ends of each shelf.

The clothing hung on the left bar will begin with the boxy jacket, next to the boxy crop and full midi skirt as one of the main outfits offered in this collection. Next to the full midi skirt will be the baby doll dress, which also pairs with the boxy jacket, and finishing at the end will be the ribbed high neck, which is the basic item for this collection. The clothing hung on the right bar will begin with the contrast pleated skirt, which is a key item in this collection, followed by another key item, the tailored dress. These are unique items that can easily stand-alone if need be, and that is why they are placed next to each other. Next is the brocade hourglass-waist jacket and brocade cropped trouser, which is a significant outfit in this collection. At the end is the tie-waist suede coat since this is also a basic and stand-alone item it is placed at the end by itself. By organizing the collection this way the Ted Baker customer can easily navigate the new collection and pair items to create a high quality outfit that is as unique as she is. STORE FRONT

9

The Ted Baker store is a black building with glass doors, two large windows and a large black sign, which matches the 5th Ave storefront. The windows of the Ted Baker store, especially in New York City, are the most important way to show the brand’s style, personality and new collections. Each window’s celling will be lined with playful Japanese lanterns and each mannequin’s head will be replaced with a large plastic flower, which plays into the humorous and unique brand that is Ted Baker. Each mannequin will be posed with a bag in hand and a pair of heels, a quirky way for the customers to see the outfit come to life. In the left window there will be two mannequins, one will be dressed in the baby doll dress in the watercolor floral print and the second mannequin will be dressed in the boxy crop and full midi skirt in midnight blossom. In the right window there will be three mannequins, with the middle mannequin on a platform. The first mannequin will be outfitted in the tailored dress in tea rose, the second will be dressed in a boxy crop top in watercolor floral and a contrast pleated skirt in salty sea and cherry blossom. The last mannequin will be wearing a boxy jacket in salty sea over a boxy crop top and a full midi skirt in watercolor floral. These windows represent the Tokyo Meets London theme and will excite customers to come in to check out the new collection.

Style # Items Colors Sizes Placement N/A Mannequin 1 White One Size M1 N/A Mannequin 2 White One Size M2 N/A Mannequin 3 White One Size M3 N/A Mannequin 4 White One Size M4 N/A Mannequin 5 White One Size M5

AW16011 Baby Doll Dress Watercolor Floral 2 M1-A AW16004 Boxy Crop Top Midnight Blossom 2 M2-A AW16013 Full Midi Skirt Midnight Blossom 2 M2-B AW16012 The Tailored Dress Tea Rose 2 M3-A AW16004 Boxy Crop Top Watercolor Floral 2 M4-A, M5-B AW16014 Contrast Pleated Skirt Salty Sea/ Cherry Blossom 2 M4-B AW16005 Boxy Jacket Salty Sea 2 M5-A AW16013 Full Midi Skirt Watercolor Floral 2 M5-C

M1 M2 M3 M4 M5

10

REFERENCES

i The 'No Ordinary Designer Label' Story. (2016). Retrieved January 27, 2016, from http://www.tedbaker.com/us/about-ted ii The Story of Ted's Great Ascent: Annual Report & Accounts 2014/15 (Rep.). (2015, January). Retrieved January 27, 2016, from Ted Baker PLC website: http://www.tedbakerplc.com/brand-and-business/teds-business-model iii Investor Relations. (2016). Retrieved February 8, 2016, from http://www.tedbakerplc.com/investor-relations iv Who Is Ted Baker? (2016). Retrieved January 28, 2016, from http://www.tedbakerplc.com/about-us/who-is-ted-baker v Mannah, J. (n.d.). Interview with Ray Kelvin Founder of Ted Baker. Retrieved January 29, 2016, from http://www.thetrendspotter.net/2015/09/interview-with-ray-kelvin-founder-of-ted-baker.html vi Ted's Aim & Strategy. (2016). Retrieved February 5, 2016, from http://www.tedbakerplc.com/about-us/teds-aim-and-strategy vii About Us: The Company. (2016). Retrieved February 8, 2016, from https://www.katespade.com/katespade-about-us/katespade-the-company.html viii About French Connection: Fashion Is Our Business. (2016). Retrieved February 8, 2016, from https://usa.frenchconnection.com/content/marketing/fashion-is-our-business.htm ix Annual Report 2015 (Rep.). (2015, March 17). Retrieved February 8, 2016, from French Connection Group PLC website: http://www.frenchconnection.com/stormsites/fcuk/media/pdf/IR/Annual_Report_for_the_year_ended_31_January_2015.pdf x Morningstar U.S. Institutional Database. (2014). Kate Spade & Company. Retrieved February 8, 2016, from http://w3.lexisnexis.com/dossier/companyreporting/start.do?prod=CD&cdcomp=e33040b375da335350d11b2e7995c8bb:e33040b375da335350d11b2e7995c8bb:6_T605721102&host=Rosetta_US_Academic&LC=UK&entityId=1031983&reportKey=snapshot_report&ticker=KATE&disclosure=y&companyName=Kate+Spade+%26+Company&companysCountry=Public+-+Parent xi WGSN. (2014, July 09). S/S 16 Fashion Forecast: Soft Pop. Retrieved February 9, 2016, from http://www.wgsn.com/content/board_viewer/#/148032/page/1 xii WGSN. (2014, July 09). S/S 16 Fashion Forecast: Past Modern. Retrieved February 9, 2016, from http://www.wgsn.com/content/board_viewer/#/148035/page/1 xiii Product Development Salaries in New York City, NY. (2016, January 26). Retrieved February 15, 2016, from

https://www.glassdoor.com/Salaries/new-york-city-product-development-salary-SRCH_IL.0,13_IM615_KO14,33.htm xiv WGSN. (2015, April 8). Womenswear Collections A/W 16/17: Off Beat. Retrieved April 17, 2016, from https://www.wgsn.com/content/board_viewer/#/57347/page/1 xv Doneger. (2015, December 16). Fabric Report: Fall/Winter 2016-17. Retrieved February 17, 2016, from http://www.donegercreativeservices.com/en/142392.htm xvi Doneger. (2015). Inspiration: Fall/Winter 2016. Retrieved February 17, 2016, from http://www.donegercreativeservices.com/en/concept_fw16.htm xvii Doneger. (2015, June 25). Design Workshop: Fall/Winter 2016-17. Retrieved February 17, 2016, from http://www.donegercreativeservices.com/en/141165.htm PHOTO CREDITS

1. Cover Photo: Pinterest https://www.pinterest.com/pin/531284087272800151/

2. Photo 1: Ted Baker http://www.tedbaker.com/au/Womens/Clothing/Skirts/c/category_womens_clothing_skirts

3. Photo 2: French Connection http://usa.frenchconnection.com/product/73eah/flint-sequin-midi-skirt.htm?search_keywords=midi%20skirt

4. Photo 3: Kate Spade https://www.katespade.com/products/multi-stripe-midi-skirt/NJMU5684.html

5. Photo 4: WGSN Soft Pop WGSN. (2014, July 09). S/S 16 Fashion Forecast: Soft Pop. Retrieved February 9, 2016, from http://www.wgsn.com/content/board_viewer/#/148032/page/1

6. Photo 5: WGSN Past Modern WGSN. (2014, July 09). S/S 16 Fashion Forecast: Past Modern. Retrieved February 9, 2016, from http://www.wgsn.com/content/board_viewer/#/148035/page/1

7. Photo 6: Pinterest https://www.pinterest.com/pin/344314333986841069/

8. Photo 7: Camille Over the Rainbow http://www.camilleovertherainbow.com/category/looks/

9. Photo 8: WGSN Off Beat https://www.wgsn.com/content/reports/#/Future+Trends/w/Fashion_Forecast/23721

11