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