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<strong>Pop</strong>-<strong>Up</strong> <strong>Shop</strong>
Chelsea Nabergall<br />
Mimi Patten<br />
Yasamin Rahmanparast<br />
Taylor Ruparel<br />
FASM410 Professor Alessandro Cannata
EXECUTIVE SUMMARY<br />
Founded on the anti-Parisian establishment Left Bank of Paris in<br />
the 1960’s, Saint Laurent was --- and continues to be, a brand truly connected<br />
to the zeitgeist of the times. Yves Saint Laurent created both couture<br />
and ready-to-wear collections inspired by the music, art, and culture<br />
of his era. As a particularly avid lover and collector of fine art himself,<br />
Yves created his famous Autumn 1965 couture collection, inspired by the<br />
abstract paintings of the Dutch De Stijl artist Piet Mondrian. The collection’s<br />
simple A-line, tidy shift silhouette was typical of the mid-sixties.<br />
The hand-crafted technique in construction, though, set Saint Laurent<br />
apart as a master of couture, while recording the importance of Mondrian’s<br />
work during the period of the 1960s.<br />
This Saint Laurent x Art Basel Miami Beach pop-up shop aims to<br />
pay homage to this famous collection, in a setting most-appropriately reflecting<br />
today’s zeitgeist. This event aims to also raise brand awareness<br />
to the market of Art Basel Miami Beach attendees, especially focusing<br />
on the Latin American cluster, predicting an 80% sell-through rate on<br />
the limited edition Saint Laurent products exclusive to this pop-up. This<br />
location in South Florida provides a tremendous opportunity, as a haven<br />
for Latin American tourists who either visit at a high frequency, or have<br />
second homes there. This raise in brand awareness will then be measured<br />
post-launch in Latin media coverage. Art Basel itself, which will host this<br />
pop-up, is ironically its greatest competitor.<br />
As a vehicle to both raise brand awareness to a new market and pay<br />
homage to lover of art Yves Saint Laurent himself, this pop-up will surely<br />
leave a lasting impression on the new and old customers of Saint Laurent.
COMPANY
SUMMARY
COMPANY HISTORY<br />
Yves Mathieu-Saint-Laurent was born in the French Algerian port town of Oran in 1936. At the age of 18, Saint Laurent journeyed to Paris to<br />
begin a career as a clothing designer. Success was immediate: in November 1954 Saint Laurent was awarded his first prize, the Prix Robe (dress), in a<br />
competition held by the Secretariat. Less than a year after his arrival in Paris, Saint Laurent entered the prestigious house of Christian Dior as Dior's<br />
assistant designer and designated heir-apparent. Two years later at Dior’s death, Saint Laurent assumed direction of the Christian Dior line.<br />
Saint Laurent (also known as Saint Laurent Paris) is a luxury fashion house founded by Yves Saint Laurent and his partner, Pierre Bergé<br />
in 1961, three years after his time at Dior. Today Saint Laurent Paris markets a broad range of women’s and men’s ready-to-wear products, leather<br />
goods, shoes, and jewellery. Yves Saint Laurent Beauty also has a notable presence in the luxury beauty market, although this is run independently<br />
through L'Oreal Paris that licenses the name. During the 1960s and 1970s, the firm popularized fashion trends such as the beatnik look, safari jackets<br />
for men and women, tight pants and tall, thigh-high boots, including the creation of arguably the most famous classic tuxedo suit for women in 1966,<br />
Le Smoking suit. Some of his most memorable collections include the <strong>Pop</strong> Art, Ballet Russes, Picasso, and Mondrian ones. He also started mainstreaming<br />
the idea of wearing silhouettes from the 1920s, 1930s and 1940s. He was the first, in 1966, to popularize ready-to-wear in an attempt to<br />
democratize fashion, with Rive Gauche and a boutique of the same name.<br />
The brand continued to expand in the 1980s and early 1990s with fragrances for both men and women, having launched its cosmetic line in<br />
1978. In 1993, the Saint Laurent fashion house was sold to the pharmaceuticals company Sanofi. In the 1998–1999 seasons, Alber Elbaz, currently of<br />
Lanvin, designed three ready-to-wear collections. Pierre Bergé appointed Hedi Slimane as collections and art director in 1997, and they relaunched<br />
YSL Rive Gauche Homme. Hedi Slimane decided to leave the house two years later. In 1999, Gucci (owned by Kering) bought the YSL brand and<br />
asked Tom Ford to design the ready-to-wear collection while Saint Laurent would design the haute couture collection. In 2002, dogged by years of<br />
poor health, drug abuse, depression, alcoholism, and criticisms of YSL designs, Saint Laurent closed the couture house of YSL. The prêt-à-porter line<br />
was produced under the direction of Stefano Pilati after Tom Ford left in 2004. His style was decidedly more French than the overtly sexy image that<br />
Tom Ford perpetuated.<br />
In 2012, Kering (previously known as PPR) announced that Hedi Slimane replaced Stefano Pilati as the creative director. Slimane had previously<br />
worked with Dior Homme until 2007. Despite the fact that Hedi Slimane had previously worked with the house, there was much controversy<br />
following his appointment, particularly after it was announced the ready-to-wear line would be rebranded as Saint Laurent. However, the Yves Saint<br />
Laurent name and iconic YSL logo have been retained for accessories such as handbags and shoes, and cosmetics (which are licensed to L'Oréal). It<br />
was also announced that the design studio would move to Los Angeles, California, Slimane's adopted home, while the couture atelier would remain<br />
in France. Hedi Slimane stated that he drew inspiration from when the ready-to-wear line was first launched as Saint Laurent Rive Gauche, with a<br />
particular connection to the music industry. Designed by Slimane, the Paris flagship boutique opened in May 2013. The previous deep red and gold<br />
color scheme was replaced by a monochrome interior, with varying materials, including marble and nickel plated bars. Under Slimane Saint Laurent<br />
plans to continue to expand its presence in the United States, opening new stores in the resort location of Bal Harbour, Florida as well as a planned<br />
store for Washington, D.C. International locations includes a strong presence in Europe, the Middle East, Africa, and Asia, with an especially strong<br />
presence in Japan (Vogue.com).
CURRENT STATUS<br />
Saint Laurent draws inspiration from youth, freedom, and modernity for its brand identity<br />
from the concept of “Rive Gauche” catered to high fashion conscious men and women<br />
in the age group of 25 to 45. Their identity is forged through innovative collections that<br />
“marry elegance, refinement, French chic and timeless style.” Saint Laurent currently<br />
offers both women’s and men’s ready-to-wear collections as well as accessories, fragrances,<br />
and cosmetics. The men’s and women’s ready-to-wear collections are showcased each season<br />
at Paris Fashion Week. Services include an international e-commerce site (YSL.com)<br />
and a highly attentive sales staff.
GROWTH PLANS<br />
Current Ownership Structure<br />
Saint Laurent is currently owned and operated by Kering. Kering is governed by an executive committee; Francois-Henri<br />
Pinault is currently the chairman and CEO of Kering. The board of directors is Kering’s principal governing body which<br />
collectively represents all the shareholders. The board of directors has taken the view of the recommendations of the<br />
FEP-MEDEF Code of corporate governance. As of May 6, 2014, eleven directors comprise the board: four women and<br />
seven men, of various nationalities (five of them independent). The new director is Daniela Riccardi. The board has set<br />
up five specialist corporate governance committees: audit, remuneration, appointments, strategy and development, and<br />
sustainable development committees. Under Saint Laurent itself, Francesca Bellettini is the current CEO and Hedi Slimane<br />
is the current creative director. The Saint Laurent retail network comprises directly-operated boutiques, including<br />
flagships in Paris, New York and Hong Kong, select multi-brand boutiques and department stores.<br />
Revenue<br />
In 2013, Saint Laurent’s revenue reached €557 million in revenue, growing from 2012’s €473 million revenue. In 2013,<br />
44% of revenue came from Leather Goods; 24% from Ready-to-Wear; 22% from shoes; and 10% from other.<br />
Future Growth Projections<br />
Saint Laurent is increasingly growing with 1,445 average number of employees and 115 directly-operated stores as of<br />
2013, compared to 1,208 average number of employees and 89 directly-operated stores at the end of 2012. Future growth<br />
plans include a particular focus on new product launches across all the main categories. Customers reacted positively<br />
to the all-new lines of shoes and handbags, such as the Sac de Jour and Paris shoes. Since June 2013, 30 countries have<br />
been added to the e-commerce website ysl.com (total is 60 now), and further growth in emerging markets will continue.<br />
Social media efforts on Facebook and Twitter will continue to be pushed. The company is heavily pursuing retail<br />
expansion since the launch of its new store concept in 2012. The focus will be on emerging markets, though there will<br />
be further development in mature ones. Existing stores will be progressively refurbished with the new concept (Kering<br />
Report, 2013).<br />
MISSION STATEMENT<br />
“Saint Laurent Paris aims to create and market highly desirable products through innovation and unparalleled<br />
quality and design” (Kering Report, 2013).
SWOT ANALYSIS<br />
STRENGTHS<br />
WEAKNESSES<br />
OPPORTUNITIES<br />
THREATS<br />
Strong creative vision and innovative<br />
products<br />
Diversified product categories<br />
including footwear and accessories,<br />
which have developed<br />
their own brand identity<br />
Strong international brand<br />
presence with over 110 directly-operated<br />
stores worldwide<br />
Branding unclear due to logo,<br />
label, and promotional changes<br />
have created identity qualms<br />
with customers as of Slimane’s<br />
branding of 2012<br />
Not competitive digitally<br />
No app for Saint Laurent products<br />
Mobile smart phone app initiatives<br />
for not only e-commerce,<br />
but educational or<br />
co-creational experiences<br />
Employ a promotional sales<br />
initiative<br />
Collaborations with high<br />
street to appeal to younger<br />
consumer<br />
Intense competition from<br />
Gucci from its parent brand,<br />
which makes up 55% of Kering’s<br />
entire revenue<br />
Rock n roll promotional ambassadors<br />
received with mixed<br />
reviews<br />
Product integrity damaged<br />
from counterfeiting<br />
Good partnership with L’Oreal<br />
Financial backing by Kering<br />
renders stability to the brand<br />
Sustainability efforts by Kering<br />
The ongoing Music Project<br />
showcases rock stars and artists<br />
in emblematic Saint Laurent<br />
pieces, garnering much<br />
media attention<br />
Green initiatives and new CSR<br />
activities<br />
Expanding in emerging markets<br />
of Asia, and other countries<br />
outside of Western Europe,<br />
North America, and<br />
Japan, as growth in revenue<br />
from these other countries has<br />
increased since 2012<br />
Art Basel and satellite shows<br />
of Design Week Miami may<br />
attract attendees away from<br />
pop-up
BRAND IDENTITY MATRIX
CURRENT DISTRIBUTION<br />
YSL has two main distribution channels. The first channel is directly through<br />
the company to the consumer. This channel is for consumers to purchase<br />
YSL products from YSL.com or one of the YSL directly operated stores. The<br />
second distribution channel includes a retailer as an intermediary between<br />
YSL and the customer. The retailer may be a solely online entity such as<br />
Net- a‐Porter.com or a more traditional luxury store such as Saks Fifth Avenue<br />
which offers products both in store and online. In the case of the first<br />
distribution channel, YSL is solely responsible for deciding which YSL products<br />
are offered on YSL.com and in particular directly operated stores. An excellent<br />
example of this is the YSL New Vintage III collection that was available<br />
in only 3 of YSL’s 78 directly operated stores (Economist, 2014). In the second<br />
distribution channel, YSL has some control of what products they will offer<br />
to certain retailers. However, the majority of the decision lies in the hands of<br />
the buyers and merchandisers for a particular retailer. The decisions made by<br />
such buyers highly impact what YSL products are available to customers to<br />
help shape brand image.
CURRENT COMMUNICATION<br />
& PROMOTIONAL ACTIVITIES<br />
Annual spending figures<br />
Typically large companies spend 8-10% of total revenue on marketing (Forbes.com,<br />
2014). Saint Laurent’s 2012 annual revenue was €473,000,000 (Kering Annual Report,<br />
2012) making their annual spending figures on marketing around €37,840,000 (8%).<br />
Current advertising activities (traditional and digital)<br />
Saint Laurent creates advertising material which can be found in fashion magazine such<br />
as i-D, V Magazine, W Magazine and Vogue to name a few. Advertisements can also<br />
be found on their website, on online banner advertisements and on their social media<br />
platforms (Facebook and Twitter). The advertisements usually feature celebrity endorsements.<br />
Recently (April 2013), Saint Laurent released a music project campaign that<br />
featured Courtney Love, Marilyn Manson and Daft Punk to reference the brand’s heritage<br />
and image of rock and roll. In addition to advertisements, Saint Laurent also creates seasonal<br />
catwalk shows.<br />
Direct Marketing initiatives<br />
Currently, Saint Laurent creates a monthly newsletter that is sent to customers email<br />
addresses which are captured in store or from their website. The newsletter features the<br />
latest Saint Laurent news, styling tips and promotions (ysl.com).<br />
Current Sale promotion activities (sales initiatives)<br />
Through Saint Laurent’s newsletters they offer promotion codes. Typically the promotion<br />
codes are not valid for their Ready-to-wear collection but are used for their cosmetic<br />
products.
MARKET
ANALYSIS
P.E.S.T.E.L.<br />
POLITICAL<br />
Hong Kong, the Middle East,<br />
Latin America and Ukraine<br />
rising geopolitical concerns<br />
Top international travelers to<br />
US: Canada, Mexico, UK, Japan,<br />
Brasil, Germany, China<br />
combined make up 73% of US<br />
international visitors<br />
US making visa for Chinese<br />
tourists easier<br />
Low Florida sales (6%) and<br />
use tax & corporate income<br />
tax (5.5%)<br />
Florida has No. 2 Foreign<br />
Trade Zone (FTZ) Network<br />
in US: tariff-free value can be<br />
added to foreign goods before<br />
shipped to other countries<br />
ECONOMIC<br />
Very low interest rates has allowed<br />
the consumer to purchase more<br />
North American GDP growth is doing<br />
better with a moderate growth<br />
(expanded at 4.6% growth in 2nd<br />
quarter) and conditions are expected<br />
to increase the following year<br />
US Inflation rate is 1.6% which is<br />
very low (people have incentive to<br />
borrow money)<br />
However unemployment fell to<br />
5.9%, which means inflation may<br />
increase<br />
Disposable income has increased,<br />
but savings rate has decreased<br />
Retailers in America have a substantial<br />
bias toward growing revenue and<br />
investing cash, over lowering costs<br />
and returning cash<br />
Improving conditions in US and<br />
Europe have moved attention from<br />
Asian market growth<br />
Retail sales up 4.7% from 2013<br />
Wages domestically have not been<br />
rising, though<br />
SOCIAL<br />
Social media platforms Facebook<br />
and Twitter popular to<br />
access promotions, facilitate<br />
discussions, and provide links<br />
to company info<br />
Consumers crave a personalized<br />
experience, either in welcome<br />
messages online or in<br />
co-creation<br />
Customers are increasingly<br />
comfortable sharing more<br />
data about themselves, their<br />
preferences, and purchases<br />
through social media<br />
Customers will listen to 90%<br />
of their colleagues’ reviews online<br />
and up to 70% of strangers’<br />
reviews online still<br />
More than 5 million foreign<br />
language speaking workers in<br />
Florida
TECHNOLOGIC<br />
Linking inventory across channels to<br />
show customers online what is available<br />
in-store aids in seeing which<br />
products are of most interest to consumers<br />
(ex: online wishlists)<br />
Mobile Point of Sale (POS) devices<br />
reduce square footage dedicated<br />
to checkout and gives associates an<br />
additional opportunity to service<br />
customers and provide product recommendations<br />
‘Clienteling’ by collecting data of frequent<br />
shoppers facilitates personalized<br />
product recommendations<br />
Store as a showroom has increased in<br />
popularity as retailers benefit demo<br />
smaller store footprints and reduction<br />
in inventory carrying costs<br />
In showroom or online environments,<br />
retailers offerings shipping<br />
flexibility and transparency to fulfillment<br />
status are well-received<br />
Cyber security still not strong<br />
3d printing offer a unique store experience<br />
ECOLOGICAL<br />
There are no ecological factors<br />
affecting this particular popup<br />
shop<br />
LEGAL<br />
Building codes for allotting<br />
space in convention center<br />
Strict laws against counterfeiting<br />
efforts protect the integrity<br />
of the brand
SIZE OF THE FASHION<br />
RETAIL MARKET OF THE<br />
MIAMI BEACH AREA<br />
FACTORS AFFECTING<br />
SALES VOLUME<br />
Very large Aventura Mall houses about 300 retailers as one of Miami’s<br />
premier fashion destinations. It is currently conducting a 241,000 sq<br />
ft expansion.<br />
Classic luxury hub Bal Harbour hosts over 50 luxury brands including<br />
Saint Laurent and Piaget, but has tremendous space limitations<br />
and a “radius clause” that prohibits tenants from opening another<br />
store within a certain distance. It is currently in a 250,000 sq ft expansion<br />
process.<br />
On the other hand, a once worn-area known as the Design District<br />
has at least 30 disclosed luxury retailers including Maison Martin<br />
Margiela, Rick Owens, and Christian Louboutin. Another 15 have<br />
signed leases. LVMH shops are shifting from Bal Harbour to the new<br />
Design District. This district offers innovation, and much less regulation<br />
to new luxury storefronts.<br />
Miami’s 4th consecutive year of record tourism fueled the retail boom<br />
with 14.2 million overnight visitors in 2013, boosting consumer<br />
spending by 4.6%.<br />
Direct vacancy rates declined to 3.8%.<br />
Price per square foot of retail space increased.<br />
Over 4 million sq ft of retail space are either currently under construction<br />
or are planned to.<br />
LOCALIZATION STRATEGY<br />
This <strong>Pop</strong>-<strong>Up</strong> will Localise into the Art Basel Miami environment and showcase<br />
classic Saint Laurent aesthetics in fixtures and content, with a Miami<br />
flare in custom products that appeals to both the Miami natives and Basel<br />
tourists --- particularly those from Latin America.
KEY PLAYERS<br />
(DIRECT COMPETITION)<br />
Saint Laurent’s competition can be broken down into three categories: competition<br />
from fellow Kering brands, brands which are owned by conglomerate<br />
competitor LVMH as well as other established fashion houses.
COMPETITION IN MIAMI<br />
Competition in the luxury market in Miami, Florida is extremely high. Saint<br />
Laurent’s Miami location directly competes with many of the brand’s competitors<br />
on a retail level. Based on Saint Laurent’s target customer as well as the<br />
demographic that attends Art Basel Miami, Alexander McQueen, Gucci and<br />
Versace are Saint Laurent’s direct competitors. All of the following mentioned<br />
brands cater towards a modern, chic customer.
COMPETITIVE STRENGTH ASSESSMENT<br />
Product quality rating is based on the average price of a ready-to-wear piece from each brand. Brand image scores were<br />
based on observations made when viewing the brands through multiple platforms, paying close attention to cohesion.<br />
Product assortment scores were given based on the variety of product categories each brand offers. Store size scores are<br />
given based on the square footage of each brands store in Miami, Florida. Alexander McQueen’s stores range from 2,000<br />
sqft to 9,999 sqft. Gucci and Versace’s average store size ranged from 10,000 sqft to 39,000 sqft. Saint Laurent has the<br />
largest retail stores at 40,000+ sqft. Social media scores were assigned based on each brands’ upkeep of their social media<br />
platforms as well as which avenues they exist in.<br />
INDIRECT COMPETITION<br />
With Saint Laurent’s pop up shop opening for the duration of Art Basel, Art<br />
Basel itself is Saint Laurent’s biggest indirect competitor. People attending the<br />
event will be spending money on art pieces and memorabilia. Art Basel’s 250<br />
galleries host the works of art created by over 4,000 artists from around the<br />
globe. In addition to buy art, Art Basel go-ers will also be spending money on<br />
dining as well as on nightlife.
TARGET
CONSUMER
TARGET DEMOGRAPHIC<br />
INFORMATION<br />
PSYCHOGRAPHIC INFORMATION<br />
Miami native<br />
Miami tourist, especially Latin<br />
Gender: Women<br />
Age: 25-55<br />
High level of education: university<br />
Income $65,000+<br />
Confident self-image<br />
Purchasing motives: Fashion forward<br />
Art as a hobby<br />
Enjoys traveling<br />
Cultural<br />
Not a price sensitive customer<br />
Independent<br />
Enjoys designer and luxury items<br />
Loyal to the brand- buys different items across<br />
the product range<br />
Europe: France, Germany, Italy, Monaco, Poland, Russia, Spain, Turkey, Ukraine, United Kindom<br />
North America: Florida, California, New York, Texas Hawaii, Las Vegas, Los Angeles, New York, Jersey<br />
GEOGRAPHIC SPAN<br />
Asia: China, Hong Kong, Indonesia, Japan, Macau, Malaysia, Singapore, South Korea, Taiwan, Thailand<br />
Africa and Middle East: Kuwait, Lebanon, Morocco, Saudi Arabia, United Arab Emirates, Azerbaijan
ADDITIONAL DEMOGRAPHICS<br />
According to Modern Luxury- “The Luxury Consumer,” the average luxury household income in Miami<br />
is $372,800. Seventy percent of them hold college degrees and 26% have post-grad degrees.<br />
Direct Economic Impact of overnight visitors to Miami is estimated by a monthly profile study or visitor-reported<br />
spending. $18.8 billion in direct expenditures was generated in 2010 in Miami, and if the industry<br />
accepted a multiplier of 1.5, the economy of Greater Miami expenditures would exceed $28.2 billion through<br />
the direct and indirect impact.<br />
In 2010, the visitor industry showed improvement with a 5.6% increase in overnight visitors in to Miami.<br />
An estimated 12.6 million visitors stayed at least one night in Miami. The most popular visitors to Miami<br />
ages ranged from 35-54.<br />
Tourist-wise, the weather and cultural attractions like Art Basel attract visitors to Miami. According to<br />
the source Synovate, a graph states that domestic visitors ‘definitely’ or would ‘very likely return.’ Specifically,<br />
the return rate is set at 96.1% -- a consistent range of return percentage from 2006-2010. International visitors<br />
in 2010 stated most were ‘likely to return,’ at a 97.5% return rate. Canada, Brazil, Argentina, Columbia, Germany,<br />
and Venezuela are the countries with the most popular international visitors to Miami.<br />
The overall total amount of foreign visitors increased from 6.6% from 2009 - 2010. International travelerS<br />
on average spent $121.1 billion in Miami in 2009. Miami is the second most popular city to visit by international<br />
visitors (Greater Miami Conventions and Visitor’s Bureau Annual Report, 2010).
LIFESTYLE/ PSYCHOGRAPHICS<br />
This segment of target Saint Laurent consumers can be broken down into three categories.<br />
Luxury as functional: This segment is composed of consumers who buy luxury products for their superior<br />
functionality and quality. They usually involve themselves in a longer decision making process in order to<br />
make rational and logical decisions, rather than emotional or impulsive ones.<br />
Luxury as reward: This segment purchases luxury goods in order to showcase their achievements. They<br />
are motivated by their desire to be successful and demonstrate this to others. They usually purchase ‘smart’<br />
luxury that demonstrates importance while not leaving them open to criticism.<br />
Luxury as indulgence: This group’s purpose for luxury goods is to self-indulge. They are willing to pay<br />
a premium for goods that express their individuality. They enjoy luxury for the way it makes them feel, and<br />
therefore have a more emotional approach to purchases.<br />
Luxury consumer’s leisurely activities include sports such as tennis and golf, going shopping and fine<br />
dining. They also enjoy cooking at home, wine tastings and going to concerts. They are likely to play tennis<br />
and golf and indulge in spa treatments. Traveling and enjoying the arts through various activities are important<br />
to this segment, as well.<br />
These consumers recognize the ethical values of the brands they frequent. Quality and exclusivity are<br />
also very important to these customers, who appreciate uniqueness. Because of this, they have a loyalty to their<br />
favorite brands (Milken Institute, 2010).<br />
Latin Americans come a couple times a year with suitcases to avoid heavy taxes in<br />
their home countries.<br />
BEHAVIORAL INFORMATION<br />
<strong>Shop</strong>ping is usually an all-day affair.<br />
Miami is all about Luxury shopping and designer brands. The Miami Luxury is<br />
tech-savvy and uses social media platforms such as: Instagram, Twitter, Facebook,<br />
Pinterest, and designer apps.<br />
Instagram in particular is popular in sharing and posting Miami fashion.
STORE LOCATION,
DESIGN & PRODUCT
JUSTIFICATION FOR<br />
LOCATION SELECTION<br />
PRIZM SEGMENTATION<br />
Art Basel Attendees/ <strong>Pop</strong>-<strong>Up</strong> Customers<br />
01 - <strong>Up</strong>per Crust: The nation’s most exclusive address, <strong>Up</strong>per Crust is the wealthiest<br />
lifestyle in America haven for empty-nesting couples over 55 years old. No segment has a<br />
higher concentration of residents earning over $200,000 a year or possessing a postgraduate<br />
degree.<br />
04 - Young Digerati: Young Digerati are the nation’s tech-savvy singles and couples living<br />
in fashionable neighborhoods on the urban fringe. Affluent, highly educated and ethnically<br />
mixed, Young Digerati communities are typically filled with trendy apartments and<br />
condos, fitness clubs and clothing boutiques, casual restaurants and all types of bars-from<br />
juice to coffee to microbrew.<br />
07 - Money & Brains: The residents of Money & Brains seem to have it all: high incomes,<br />
advanced degrees and sophisticated tastes to match their credentials. Many of these citydwellers,<br />
predominantly white with a high concentration of Asian Americans, are married<br />
couples with few children who live in fashionable homes on small, manicured lots.<br />
16 - Bohemian Mix: A collection of young, mobile urbanites, Bohemian Mix represents<br />
the nation’s most liberal lifestyles. Its residents are a progressive mix of young singles and<br />
couples, students and professionals, Hispanics, Asians, African-Americans and whites. In<br />
their funky rowhouses and apartments, Bohemian Mixers are the early adopters who are<br />
quick to check out the latest movie, nightclub, laptop and microbrew.<br />
26 - The Cosmopolitans: Educated, midscale and multi-ethnic, The Cosmopolitans<br />
are urbane couples in America’s fast-growing cities. Concentrated in a handful of<br />
metros-such as Las Vegas, Miami and Albuquerque-these households feature older<br />
home-owners, empty-nesters and college graduates. A vibrant social scene surrounds<br />
their older homes and apartments, and residents love the nightlife and enjoy leisure-intensive<br />
lifestyles (Claritas, 2014).
ESTIMATING COMPETITION<br />
From December 1 - 7, 2014, a week long arts festivity called Miami Art Week takes places.<br />
Approximately twenty art fairs participate, positioned in the area between Miami’s Wynwood<br />
Art District, Downtown Miami and Miami Beach.<br />
Miami Beach Art Fairs outside of Art Basel include: Aqua Art Miami, Design Miami, Ink<br />
Miami, NADA Art Fair, PULSE Miami, SELECT Fair, Scope Miami, and Untitled.<br />
Additional Miami Art Fairs include: Art Miami, ArtSpot, Concept-Fair, CONTEXT,<br />
Fridge Art Fair, Miami Photo Salon, Miami Project, Miami River Art Fair, Pinta, PRIZM,<br />
Red Dot Art Fair, Sculpt Miami, Spectrum<br />
SALES POTENTIAL<br />
In 2013, a total of 75,000 visitors visited Basel over five days, with more projected in 2014.<br />
Basel currently has nearly 500,000 sq feet of exhibition space.<br />
The space offers more than $3 billion of art (Claritas, 2014).
AREA ATTRACTIONS:<br />
EVOLUTION OF MIAMI’S<br />
DESIGN DISTRICT<br />
Craig Robins, the developer responsible for bringing to life a good portion of the rehabilitation of South Beach, was also responsible<br />
for the overhaul of the Design District in Miami. Starting with his real estate development company, Dacra, in the late ‘80s, Robins renovated<br />
Art Deco hotels on Ocean Drive and helped transform Lincoln Road in South Beach. Along with Sam Keller, he convinced Art Basel to come<br />
to Miami, and in 2005 he founded Design Miami with Ambra Medda. Both events helped put Miami on the map as an art and design center,<br />
and the latter has been the catalyst in the overhaul of the Design District.<br />
The Design District is the area north of Miami’s downtown core, near Northeast 40th Street and Northeast Second Avenue, earning its<br />
design moniker many years ago in the 1920s, when Theodore Moore built the first furniture showroom, Moore & Sons, there. Fast-forward<br />
to the early 1990’s when Robins realized the vacancy rate topped 50% and buildings sold for $20 to $30 per square foot there — today, land<br />
there sells for more than $1,000 per square foot.<br />
In 2011, Louis Vuitton announced their conglomerate shops would abandon their Bal Harbour <strong>Shop</strong>s in favour of a building in the<br />
Design District. Louis Vuitton says it is part of their “pioneering spirit” to make such a move. Robins envisioned a neighborhood advocating<br />
creativity in all lifestyle aspects, and this move has propelled that push forward. Robins then brought arts and culture events like Art Basel to<br />
ripen the area as a new hot spot. After working to bring Design Miami to the Design District, Robins came into contact with Michael Burke,<br />
at the time CEO of Fendi. Burke then brought Fendi Casa to the area, thus bringing the rest of LVMH there.<br />
Luxury real estate from L Real Estate soon followed as the fast-burgeoning market from the post-recession influx of Brasilian, Venezuelan,<br />
Mexican and Russian money. The Design District offered luxury retailers a way to stand out in Miami’s fashion market, away from<br />
established retail markets such as Aventura and Bal Harbour. Now, luxury retailers outside of LVMH including Hermes, Ermenegildo Zegna,<br />
and Maison Martin Margiela have become drawn to the area and opened new retail spaces there since it offers both dining and retail: the total<br />
luxury experience.<br />
Another advantage of the Design District is that retailers are free to design whichever space they choose. Robins has given retailers<br />
the freedom to build elaborate and unique storefronts to imprint their brand identities. The district draws the artisan vibe of Saint Germain<br />
in Paris and luxury retail district of Midtown Manhattan, bringing together the influx of Latin American and European markets (MiamiDesignDistrict.net,<br />
2014).
AREA FACTORS<br />
Pedestrian traffic<br />
In 2013, 75,000 visitors came through Art Basel, and that number is expected to increase by at least another 5,000 visitors.<br />
Public Transportation<br />
Free shuttle buses from the Miami Beach Convention Center (hosting Art Basel) transfer to major cultural institutions in<br />
Miami. Metro rail or MetroMover can be taken to the Adrienne Arscht Center/Omni Terminal Station, and then a bus to<br />
Wynwood can be taken. City of Miami Trolley will have a special route going to the Art Basel Miami Week Loop, operating<br />
from 11am to 10pm. Bus routes including the C, S, M and 120 to MacArthur Causeway, Miami Beach. Tri Rail from Broward<br />
or Palm Beach goes to Miami Beach.<br />
Parking at Basel<br />
Parking passes are valid for the parking garage on the corner of 17th Street and Convention Center Drive, ordered at a price<br />
of $150. Metered street parking in Miami Beach is taken on a first-come basis.<br />
Dates and rates of Basel<br />
There are two types of showings at Art Basel. The first is the Private view: Wednesday, December 3, 2014, 11am to 8pm<br />
(by invitation only). Afterwards, the Public days run from December 4 - 7, 2014. A Day ticket rate is $45 and a Permanent<br />
ticket is $100 (Artbasel.com, 2014).<br />
REQUIRED HUMAN RESOURCES<br />
Four (4) bi-lingual (Spanish and English) full-time sales staff members from Saint Laurent stores must be present at all times<br />
during selling time.<br />
Four (4) additional construction crew from Tom Fruin (artist commissioned to build external structure; crew fee accounted<br />
in commission price).<br />
One (1) security guard.
DESIGN OF PHYSICAL SPACE
Promotion Rational<br />
DETAILS OF PHYSICAL SPACE<br />
This retail space itself becomes an art piece that also symbolizes the brand of Saint Laurent through the accents incorporated in<br />
the design.<br />
The structure was a commissioned to artist Tom Fruin and is comprised of glass and iron in a de stijl design similar to Mondrian’s<br />
work, Composition with Large Red Plane, Yellow, Black, Gray, and Blue. Similar to stained glass, each square is colored and slightly opaque,<br />
creating an open feeling.<br />
Nickel and marble, as well as the logo are featured throughout the space, reflecting the designs of Saint Laurent stores. The ambiance<br />
is created as homage to Saint Laurent through the large framed portrait, bouquets of roses on tall votives, and luxurious Persian rugs.<br />
A white marble table sits below the portrait of Saint Laurent holding candles, also adding to the ambiance.<br />
The visual merchandising features a large marble cube in the center of the shop representing both Saint Laurent and Mondrian,<br />
and presents the merchandise in a way that allows the customers to handle the products. Our merchandise assortment will include a<br />
limited edition Saint Laurent beach tote bag made of canvas and leather, a leather business card holder, a key chain, and a silk scarf, all<br />
incorporating a Mondrian-inspired print.<br />
Other fixtures include the 10 hanging light fixtures, as well as the nickel plated frames holding four screens along the walls of the<br />
shop, running footage of Saint Laurent and his iconic works. These screens provide an educational experience of the brand to unfamiliar<br />
customers. Two transaction stations on either side of the shop hold four iPads, which will be used to complete customer transactions.<br />
These stations are also used to hold merchandise behind the counters. We will also have one security guard at the pop-up-shop during<br />
operating hours.
OUTSIDE OF POP-UP
INSIDE OF POP-UP
STYLE COLOR SIZE<br />
RETAIL<br />
PRICE<br />
# OF UNITS<br />
Mondrian<br />
print<br />
N/A $1,500 100<br />
TOTE BAG<br />
Mondrian<br />
print <br />
N/A $245 300<br />
CARD HOLDER<br />
Mondrian<br />
print <br />
N/A $195 1,000<br />
KEYCHAIN<br />
Mondrian<br />
print <br />
N/A $325 1,000<br />
<br />
SCARF
COMMUNICATION &
PROMOTIONAL PLAN
SCHEDULE OF PROMOTIONAL ACTIVITIES<br />
MEDIA <br />
Inventations sent to magazine <br />
editors, and high profile <br />
customers <br />
PRE-‐LAUNCH DURING POST LAUNCH<br />
18-‐Nov 25-‐Nov 2-‐Dec 3-‐Dec 4-‐Dec 5-‐Dec 6-‐Dec 7-‐Dec 14-‐Dec 21-‐Dec<br />
Key Chain giveaway to bloggers <br />
In-‐store flyers<br />
Reusable bag giveaway <br />
Mentions & features in <br />
prominent Latin lifestyle <br />
magazines <br />
Saint Laurent Social Media
RATIONALE Promotion Rational FOR PROMOTIONAL ACTIVITIES<br />
The pre-launch promotion for the pop-up shop begins two weeks prior to the launch of the event. Inventions<br />
for the pop-up will be sent out to the editors of prominent Latin lifestyle and fashion magazines, high net worth individuals<br />
who attend Art Basel, and VIP customers of Saint Laurent. A select number of key chains will be sent to online<br />
bloggers in order to gain hype for the limited edition merchandise. Flyers promoting the event will also be place in<br />
Saint Laurent’s Miami retail location.<br />
On the first public day of Art Basel, attendees have the opportunity to receive one of five hundred reusable<br />
shopping bags with a unique design relating to the pop-up shop. The reusable bags allow for patrons of Art Basel to<br />
carry the numerous amount of literature received from the many art galleries. The reusable bags also act as constant<br />
promotion for the pop-up shop as people carry them around the event.<br />
Post-launch promotion for the pop-up shop takes place within the Latin lifestyle and fashion magazines, such<br />
as Vogue Mexico, Harper’s Bazaar Mexico and Vanity Fair Spain.<br />
In addition to the activities mentioned above, Saint Laurent will be posting promotional material about the<br />
pop-up shop through social media platforms such as Instagram, Facebook and Twitter.<br />
Due to the short time frame of the event and the limited product assortment, the return on investment for the<br />
Saint Laurent pop-up shop is extremely high. Marketing and promotion initiatives total $4,569 out of goaled revenue<br />
of $587,000.
FINANCIAL
PLAN
INTERIOR FIXTURES <br />
Screen Fixtures <br />
Ceiling Lights <br />
Custom Merch. Cube<br />
Custom Transaction tables <br />
Marble Altar<br />
UNIT COST UNITS COSTS<br />
INTERIOR FIXTURES <br />
UNIT COST UNITS COSTS<br />
$300.00 4 $1,200.00 Footfall<br />
$20.00 10 $200.00 Conversion Rate<br />
Screen $1,000.00 Fixtures <br />
1 $1,000.00$300.00 4 $1,200.00 Average Basket<br />
Ceiling $2,000.00 Lights <br />
2 $4,000.00 $20.00 10 Revenues $200.00 (80% of total merchendise)<br />
Custom Merch. Cube<br />
$1,000.00 1 $1,000.00<br />
$3,000.00 1 $3,000.00<br />
Custom Transaction tables <br />
$2,000.00 2 $4,000.00TOTAL<br />
EXTERIOR FIXTURES<br />
Marble Altar<br />
$3,000.00 1 $3,000.00 PRODUCTS<br />
Structure <br />
$100,000.00 1 $100,000.00 Beach Tote<br />
EXTERIOR FIXTURES<br />
TOTAL<br />
$ 109,400.00<br />
Business Card Holder<br />
Structure <br />
$100,000.00 1 $100,000.00<br />
Keychain<br />
TOTAL<br />
$ 109,400.00<br />
EXPENSES UNIT COST UNITS COST Scarf<br />
Cost of Goods Sold x EXPENSES 2400 $92,949.00 UNIT COST UNITS COST EARNINGS (BEFORE TAX)<br />
Inventory Storage $65.00<br />
Cost of Goods Sold <br />
1 $65.00<br />
x 2400 $92,949.00<br />
Inventory Storage $65.00 1 $65.00<br />
Art Basel Fee $43,000.00<br />
Employee Wages<br />
1 $43,000.00<br />
$30/hr 4 $6,360.00<br />
100%<br />
Art Basel Fee $43,000.00 1 $43,000.00<br />
Medium Bags $2.56 2000 $5,120.00<br />
Tissue $0.05<br />
Large Bags<br />
8880 $444.00<br />
$3.62 110 $398.20<br />
Business Card Box $2.00Medium Bags 310 $620.00$2.56 2000 $5,120.00<br />
Keychain Box $1.80 Tissue 1030 $1,854.00 $0.05 8880 $444.00<br />
Scarf Box $4.00 Business Card Box 1030 $4,120.00 $2.00 310 $620.00<br />
Tote Dust Bag $0.60Keychain Box 110 $66.00$1.80 1030 $1,854.00<br />
Scarf Dust Bag $0.45 Scarf Box 1030 $463.50$4.00 1030 $4,120.00<br />
Small dust bag $0.35Tote Dust Bag 1340 $469.00$0.60 110 $66.00<br />
Boxed Water $1.25Scarf Dust Bag 1500 $1,875.00 $0.45 1030 $463.50<br />
iPads $500.00 Small dust bag 4 $2,000.00 $0.35 1340 $469.00<br />
Flower Votives $100.00Boxed Water 2 $200.00$1.25 1500 $1,875.00<br />
Framed Large Print $500.00 iPads 1 $500.00 $500.00 4 $2,000.00<br />
External iPad Chargers $20.00Flower Votives 4 $80.00$100.00 2 $200.00<br />
Sound System $1,000.00 Framed Large Print 1 $1,000.00 $500.00 1 $500.00<br />
Candles $2.00 External iPad Chargers 250 $500.00$20.00 4 $80.00<br />
Flowers 500/day Sound System 2/bouquets day $2,500.00 $1,000.00 1 $1,000.00<br />
Wire to hang picture $30.00 Candles 1 $30.00$2.00 250 $500.00<br />
iPad Stands $10.00 Flowers 2 $20.00500/day 2/bouquets day $2,500.00<br />
Custom Water box $100.00 Wire to hang picture 2 $200.00$30.00 1 $30.00<br />
Small persian rugs $50.00 iPad Stands 4 $200.00$10.00 2 $20.00<br />
Content Screens $500.00 Custom Water box 4 $2,000.00 $100.00 2 $200.00<br />
Security Guard Wage $20/hr Small persian rugs 1 $1,060$50.00 4 $200.00<br />
Content Screens $500.00 4 $2,000.00<br />
Security Guard Wage $20/hr 1 $1,060<br />
Invitations $4.00 500 $2,000.00<br />
ADVERTISING/MARKETING EXPENSES UNIT COST UNITS COST<br />
Giveaway Keychains $24.38 50 $1,219.00<br />
Giveaway Reusable Bags $0.70 Invitations 500 $350.00$4.00 500 $2,000.00<br />
In-‐store Flyers $1.00 Giveaway Keychains 1000 $1,000.00 $24.38 50 $1,219.00<br />
Giveaway Reusable Bags $0.70 500 $350.00<br />
TOTAL $172,662.70<br />
In-‐store Flyers $1.00 1000 $1,000.00<br />
Employee Wages $30/hr 4 $6,360.00 SELL THROUGH %<br />
Large Bags $3.62 110 $398.20 80% (Goaled)<br />
ADVERTISING/MARKETING EXPENSES UNIT COST UNITS COST<br />
TOTAL EXPENSES $282,062.70<br />
TOTAL $172,662.70<br />
TOTAL EXPENSES $282,062.70
3-‐Dec 4-‐Dec 5-‐Dec 6-‐Dec 7-‐Dec<br />
Footfall 5000 75,000 75,000 75,000 75,000<br />
Conversion Rate 40% 5% 5% 5% 5%<br />
Average Basket $919.00 $823.00 $823.00 $823.00 $823.00<br />
Revenues (80% of total merchendise) $234,800.00 $29,350.00 $29,350.00 $29,350.00 $29,350.00<br />
TOTAL $587,000.00<br />
PRODUCTS UNITS % PRICE 3-‐Dec 4-‐Dec 5-‐Dec 6-‐Dec 7-‐Dec<br />
Beach Tote 100 4% $1,500.00 20 20 20 20 20<br />
Business Card Holder 300 13% $245.00 60 60 60 60 60<br />
Keychain 950 40% $195.00 190 190 190 190 190<br />
Scarf 1000 43% $325.00 200 200 200 200 200<br />
EARNINGS (BEFORE TAX) 2350 100% $733,750.00<br />
SELL THROUGH % REVENUE EXPENSES NET PROFIT<br />
100% $733,750.00 $282,062.70 $451,687.30<br />
80% (Goaled) $587,000.00 $282,062.70 $304,937.30<br />
RATIONALE<br />
The first step in creating the financial plan for the Saint Laurent pop-up shop was finding the cost of fixtures<br />
needed. Type of fixtures included interior and exterior fixtures such as lights, transaction tables, and the structure itself.<br />
Then, we found the cost of the expenses of the store and marketing initiatives: wages for employees, Art Basel fee,<br />
invitations, give away bags etc. In addition to the expenses, we estimated the cost of production for the limited edition<br />
merchandise based on an 800% mark up (Business of Fashion, 2014).<br />
We then estimated the average foot traffic, conversion rate and the average basket of our potential customers<br />
at Art Basel. We figured that foot traffic at the event would be 5,000 people on the first day, which is only open for<br />
VIP people and 75,000 people for the rest of the event, the expected attendance rate for the event as a whole. Since the<br />
pop-up shop is located directly outside of the event, we have potential to reach customers who did not purchase Art<br />
Basel tickets, but show up for the festivities. The conversion rate of customers was based on our objective of selling<br />
though 80% of the total merchandise produced. We estimated that 40%, or half of the 80%, of merchandise would be<br />
sold on the VIP day of the event leveraging on a higher average basket than the remainder of the days. 5% of the remaining<br />
40% of merchandise left will be sold each day of the event. Average basket figures were determined through a<br />
list of possible transaction outcomes with the average price paid from those possible transactions. The average basket<br />
is higher on the first day due to more affluent and high profile people attending.
BIBLIOGRAPHY<br />
Art Basel Miami Beach.Web. Oct. 2014. .<br />
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Deloitte, February. February 2012Contents- US Fourth Annual E-Commerce : Web. .<br />
“Greater Miami And The Beaches 2010 Industry Review.” 2010. Web. Oct.-Nov. 2014. .<br />
June 2013 Miami Dda – <strong>Pop</strong>ulation & Demographic Profile; Source September 2013 Metro Monitor - Brookings;, and 2012 Ubs Study, Ranked By Spending<br />
Power; Hoovers, June 2013; 2012 Greater Miami Convention & Visitors Bur. “Miami Dda – <strong>Pop</strong>ulation & Demographic Profile.” (n.d.): n. pag. Metro Monitor,<br />
June 2013. Web. Oct.-Nov. 2014. .<br />
Magallanes, Tom. “Travel and Tourism Direct Contribution to GDP.” 2011. Web. Oct.-Nov. 2014. .<br />
“Market Pulse | All Eyes on America - The Business of Fashion.” The Business of Fashion. Web. Nov. 2014. .<br />
“Miami Design District’s Transformation into a Luxury <strong>Shop</strong>ping Destination Is Underway.” Miamiherald. Web. Oct. 2014. .<br />
PRIZM Market Segmentation Research, Tools, Market Segment Research. Web. Oct. 2014. .<br />
“Reference for Business.” Groupe Yves Saint Laurent. Web. Nov. 2014. .<br />
“References.” RA KERING 2013 GB. Web. Oct. 2014. .<br />
“Retail Sales, Producer Prices, Wages and Exchange Rates.” The Economist. The Economist Newspaper, 07 Oct. 2014. Web. Oct. 2014. .<br />
“SHOP.” List of Stores at the Miami Design District. Web. Oct. 2014. .<br />
“Store Directory.” Store Directory. Web. Nov. 2014. .<br />
“United States Disposable Personal Income 1959-2014 | Data | Chart.” United States Disposable Personal Income. Web. Oct. 2014. .<br />
“United States GDP Growth Rate 1947-2014 | Data | Chart | Calendar.” United States GDP Growth Rate. Web. Oct. 2014. .<br />
“U.S., with Help from Chinese Tourists, Boosts Global Luxury spending.” Fortune US with Help from Chinese Tourists Boosts Global Luxuryspending Comments.Web.<br />
Oct. 2014. .<br />
Whitelocks, Sadie. “YSL Set for a Name Change: New Creative Head Hedi Slimane Drops Yves Name for Ready-to-wear Collection.” Mail Online. Associated<br />
Newspapers, 22 June 2012. Web. Oct. 2014. .<br />
“YSL Official Website | Saint Laurent | YSL.com.” YSL Official Website | Saint Laurent | YSL.com. Web. Nov. 2014. .<br />
“Yves Saint Laurent - Vogue.” Yves Saint Laurent Vogue.Web. Oct. 2014. .
APPENDIX
x<br />
<strong>Pop</strong>-<strong>Up</strong> <strong>Shop</strong>