Pop-Up Shop

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Pop-Up Shop

Chelsea Nabergall
Mimi Patten
Yasamin Rahmanparast
Taylor Ruparel
FASM410 Professor Alessandro Cannata

EXECUTIVE SUMMARY
Founded on the anti-Parisian establishment Left Bank of Paris in
the 1960’s, Saint Laurent was --- and continues to be, a brand truly connected
to the zeitgeist of the times. Yves Saint Laurent created both couture
and ready-to-wear collections inspired by the music, art, and culture
of his era. As a particularly avid lover and collector of fine art himself,
Yves created his famous Autumn 1965 couture collection, inspired by the
abstract paintings of the Dutch De Stijl artist Piet Mondrian. The collection’s
simple A-line, tidy shift silhouette was typical of the mid-sixties.
The hand-crafted technique in construction, though, set Saint Laurent
apart as a master of couture, while recording the importance of Mondrian’s
work during the period of the 1960s.
This Saint Laurent x Art Basel Miami Beach pop-up shop aims to
pay homage to this famous collection, in a setting most-appropriately reflecting
today’s zeitgeist. This event aims to also raise brand awareness
to the market of Art Basel Miami Beach attendees, especially focusing
on the Latin American cluster, predicting an 80% sell-through rate on
the limited edition Saint Laurent products exclusive to this pop-up. This
location in South Florida provides a tremendous opportunity, as a haven
for Latin American tourists who either visit at a high frequency, or have
second homes there. This raise in brand awareness will then be measured
post-launch in Latin media coverage. Art Basel itself, which will host this
pop-up, is ironically its greatest competitor.
As a vehicle to both raise brand awareness to a new market and pay
homage to lover of art Yves Saint Laurent himself, this pop-up will surely
leave a lasting impression on the new and old customers of Saint Laurent.

COMPANY

SUMMARY

COMPANY HISTORY
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
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
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
assistant designer and designated heir-apparent. Two years later at Dior’s death, Saint Laurent assumed direction of the Christian Dior line.
Saint Laurent (also known as Saint Laurent Paris) is a luxury fashion house founded by Yves Saint Laurent and his partner, Pierre Bergé
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
goods, shoes, and jewellery. Yves Saint Laurent Beauty also has a notable presence in the luxury beauty market, although this is run independently
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
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,
Le Smoking suit. Some of his most memorable collections include the Pop Art, Ballet Russes, Picasso, and Mondrian ones. He also started mainstreaming
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
democratize fashion, with Rive Gauche and a boutique of the same name.
The brand continued to expand in the 1980s and early 1990s with fragrances for both men and women, having launched its cosmetic line in
1978. In 1993, the Saint Laurent fashion house was sold to the pharmaceuticals company Sanofi. In the 1998–1999 seasons, Alber Elbaz, currently of
Lanvin, designed three ready-to-wear collections. Pierre Bergé appointed Hedi Slimane as collections and art director in 1997, and they relaunched
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
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
poor health, drug abuse, depression, alcoholism, and criticisms of YSL designs, Saint Laurent closed the couture house of YSL. The prêt-à-porter line
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
Tom Ford perpetuated.
In 2012, Kering (previously known as PPR) announced that Hedi Slimane replaced Stefano Pilati as the creative director. Slimane had previously
worked with Dior Homme until 2007. Despite the fact that Hedi Slimane had previously worked with the house, there was much controversy
following his appointment, particularly after it was announced the ready-to-wear line would be rebranded as Saint Laurent. However, the Yves Saint
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
was also announced that the design studio would move to Los Angeles, California, Slimane's adopted home, while the couture atelier would remain
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
particular connection to the music industry. Designed by Slimane, the Paris flagship boutique opened in May 2013. The previous deep red and gold
color scheme was replaced by a monochrome interior, with varying materials, including marble and nickel plated bars. Under Slimane Saint Laurent
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
store for Washington, D.C. International locations includes a strong presence in Europe, the Middle East, Africa, and Asia, with an especially strong
presence in Japan (Vogue.com).

CURRENT STATUS
Saint Laurent draws inspiration from youth, freedom, and modernity for its brand identity
from the concept of “Rive Gauche” catered to high fashion conscious men and women
in the age group of 25 to 45. Their identity is forged through innovative collections that
“marry elegance, refinement, French chic and timeless style.” Saint Laurent currently
offers both women’s and men’s ready-to-wear collections as well as accessories, fragrances,
and cosmetics. The men’s and women’s ready-to-wear collections are showcased each season
at Paris Fashion Week. Services include an international e-commerce site (YSL.com)
and a highly attentive sales staff.

GROWTH PLANS
Current Ownership Structure
Saint Laurent is currently owned and operated by Kering. Kering is governed by an executive committee; Francois-Henri
Pinault is currently the chairman and CEO of Kering. The board of directors is Kering’s principal governing body which
collectively represents all the shareholders. The board of directors has taken the view of the recommendations of the
FEP-MEDEF Code of corporate governance. As of May 6, 2014, eleven directors comprise the board: four women and
seven men, of various nationalities (five of them independent). The new director is Daniela Riccardi. The board has set
up five specialist corporate governance committees: audit, remuneration, appointments, strategy and development, and
sustainable development committees. Under Saint Laurent itself, Francesca Bellettini is the current CEO and Hedi Slimane
is the current creative director. The Saint Laurent retail network comprises directly-operated boutiques, including
flagships in Paris, New York and Hong Kong, select multi-brand boutiques and department stores.
Revenue
In 2013, Saint Laurent’s revenue reached €557 million in revenue, growing from 2012’s €473 million revenue. In 2013,
44% of revenue came from Leather Goods; 24% from Ready-to-Wear; 22% from shoes; and 10% from other.
Future Growth Projections
Saint Laurent is increasingly growing with 1,445 average number of employees and 115 directly-operated stores as of
2013, compared to 1,208 average number of employees and 89 directly-operated stores at the end of 2012. Future growth
plans include a particular focus on new product launches across all the main categories. Customers reacted positively
to the all-new lines of shoes and handbags, such as the Sac de Jour and Paris shoes. Since June 2013, 30 countries have
been added to the e-commerce website ysl.com (total is 60 now), and further growth in emerging markets will continue.
Social media efforts on Facebook and Twitter will continue to be pushed. The company is heavily pursuing retail
expansion since the launch of its new store concept in 2012. The focus will be on emerging markets, though there will
be further development in mature ones. Existing stores will be progressively refurbished with the new concept (Kering
Report, 2013).
MISSION STATEMENT
“Saint Laurent Paris aims to create and market highly desirable products through innovation and unparalleled
quality and design” (Kering Report, 2013).

SWOT ANALYSIS
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
Strong creative vision and innovative
products
Diversified product categories
including footwear and accessories,
which have developed
their own brand identity
Strong international brand
presence with over 110 directly-operated
stores worldwide
Branding unclear due to logo,
label, and promotional changes
have created identity qualms
with customers as of Slimane’s
branding of 2012
Not competitive digitally
No app for Saint Laurent products
Mobile smart phone app initiatives
for not only e-commerce,
but educational or
co-creational experiences
Employ a promotional sales
initiative
Collaborations with high
street to appeal to younger
consumer
Intense competition from
Gucci from its parent brand,
which makes up 55% of Kering’s
entire revenue
Rock n roll promotional ambassadors
received with mixed
reviews
Product integrity damaged
from counterfeiting
Good partnership with L’Oreal
Financial backing by Kering
renders stability to the brand
Sustainability efforts by Kering
The ongoing Music Project
showcases rock stars and artists
in emblematic Saint Laurent
pieces, garnering much
media attention
Green initiatives and new CSR
activities
Expanding in emerging markets
of Asia, and other countries
outside of Western Europe,
North America, and
Japan, as growth in revenue
from these other countries has
increased since 2012
Art Basel and satellite shows
of Design Week Miami may
attract attendees away from
pop-up

BRAND IDENTITY MATRIX

CURRENT DISTRIBUTION
YSL has two main distribution channels. The first channel is directly through
the company to the consumer. This channel is for consumers to purchase
YSL products from YSL.com or one of the YSL directly operated stores. The
second distribution channel includes a retailer as an intermediary between
YSL and the customer. The retailer may be a solely online entity such as
Net- a‐Porter.com or a more traditional luxury store such as Saks Fifth Avenue
which offers products both in store and online. In the case of the first
distribution channel, YSL is solely responsible for deciding which YSL products
are offered on YSL.com and in particular directly operated stores. An excellent
example of this is the YSL New Vintage III collection that was available
in only 3 of YSL’s 78 directly operated stores (Economist, 2014). In the second
distribution channel, YSL has some control of what products they will offer
to certain retailers. However, the majority of the decision lies in the hands of
the buyers and merchandisers for a particular retailer. The decisions made by
such buyers highly impact what YSL products are available to customers to
help shape brand image.

CURRENT COMMUNICATION
& PROMOTIONAL ACTIVITIES
Annual spending figures
Typically large companies spend 8-10% of total revenue on marketing (Forbes.com,
2014). Saint Laurent’s 2012 annual revenue was €473,000,000 (Kering Annual Report,
2012) making their annual spending figures on marketing around €37,840,000 (8%).
Current advertising activities (traditional and digital)
Saint Laurent creates advertising material which can be found in fashion magazine such
as i-D, V Magazine, W Magazine and Vogue to name a few. Advertisements can also
be found on their website, on online banner advertisements and on their social media
platforms (Facebook and Twitter). The advertisements usually feature celebrity endorsements.
Recently (April 2013), Saint Laurent released a music project campaign that
featured Courtney Love, Marilyn Manson and Daft Punk to reference the brand’s heritage
and image of rock and roll. In addition to advertisements, Saint Laurent also creates seasonal
catwalk shows.
Direct Marketing initiatives
Currently, Saint Laurent creates a monthly newsletter that is sent to customers email
addresses which are captured in store or from their website. The newsletter features the
latest Saint Laurent news, styling tips and promotions (ysl.com).
Current Sale promotion activities (sales initiatives)
Through Saint Laurent’s newsletters they offer promotion codes. Typically the promotion
codes are not valid for their Ready-to-wear collection but are used for their cosmetic
products.

MARKET

ANALYSIS

P.E.S.T.E.L.
POLITICAL
Hong Kong, the Middle East,
Latin America and Ukraine
rising geopolitical concerns
Top international travelers to
US: Canada, Mexico, UK, Japan,
Brasil, Germany, China
combined make up 73% of US
international visitors
US making visa for Chinese
tourists easier
Low Florida sales (6%) and
use tax & corporate income
tax (5.5%)
Florida has No. 2 Foreign
Trade Zone (FTZ) Network
in US: tariff-free value can be
added to foreign goods before
shipped to other countries
ECONOMIC
Very low interest rates has allowed
the consumer to purchase more
North American GDP growth is doing
better with a moderate growth
(expanded at 4.6% growth in 2nd
quarter) and conditions are expected
to increase the following year
US Inflation rate is 1.6% which is
very low (people have incentive to
borrow money)
However unemployment fell to
5.9%, which means inflation may
increase
Disposable income has increased,
but savings rate has decreased
Retailers in America have a substantial
bias toward growing revenue and
investing cash, over lowering costs
and returning cash
Improving conditions in US and
Europe have moved attention from
Asian market growth
Retail sales up 4.7% from 2013
Wages domestically have not been
rising, though
SOCIAL
Social media platforms Facebook
and Twitter popular to
access promotions, facilitate
discussions, and provide links
to company info
Consumers crave a personalized
experience, either in welcome
messages online or in
co-creation
Customers are increasingly
comfortable sharing more
data about themselves, their
preferences, and purchases
through social media
Customers will listen to 90%
of their colleagues’ reviews online
and up to 70% of strangers’
reviews online still
More than 5 million foreign
language speaking workers in
Florida

TECHNOLOGIC
Linking inventory across channels to
show customers online what is available
in-store aids in seeing which
products are of most interest to consumers
(ex: online wishlists)
Mobile Point of Sale (POS) devices
reduce square footage dedicated
to checkout and gives associates an
additional opportunity to service
customers and provide product recommendations
‘Clienteling’ by collecting data of frequent
shoppers facilitates personalized
product recommendations
Store as a showroom has increased in
popularity as retailers benefit demo
smaller store footprints and reduction
in inventory carrying costs
In showroom or online environments,
retailers offerings shipping
flexibility and transparency to fulfillment
status are well-received
Cyber security still not strong
3d printing offer a unique store experience
ECOLOGICAL
There are no ecological factors
affecting this particular popup
shop
LEGAL
Building codes for allotting
space in convention center
Strict laws against counterfeiting
efforts protect the integrity
of the brand

SIZE OF THE FASHION
RETAIL MARKET OF THE
MIAMI BEACH AREA
FACTORS AFFECTING
SALES VOLUME
Very large Aventura Mall houses about 300 retailers as one of Miami’s
premier fashion destinations. It is currently conducting a 241,000 sq
ft expansion.
Classic luxury hub Bal Harbour hosts over 50 luxury brands including
Saint Laurent and Piaget, but has tremendous space limitations
and a “radius clause” that prohibits tenants from opening another
store within a certain distance. It is currently in a 250,000 sq ft expansion
process.
On the other hand, a once worn-area known as the Design District
has at least 30 disclosed luxury retailers including Maison Martin
Margiela, Rick Owens, and Christian Louboutin. Another 15 have
signed leases. LVMH shops are shifting from Bal Harbour to the new
Design District. This district offers innovation, and much less regulation
to new luxury storefronts.
Miami’s 4th consecutive year of record tourism fueled the retail boom
with 14.2 million overnight visitors in 2013, boosting consumer
spending by 4.6%.
Direct vacancy rates declined to 3.8%.
Price per square foot of retail space increased.
Over 4 million sq ft of retail space are either currently under construction
or are planned to.
LOCALIZATION STRATEGY
This Pop-Up will Localise into the Art Basel Miami environment and showcase
classic Saint Laurent aesthetics in fixtures and content, with a Miami
flare in custom products that appeals to both the Miami natives and Basel
tourists --- particularly those from Latin America.

KEY PLAYERS
(DIRECT COMPETITION)
Saint Laurent’s competition can be broken down into three categories: competition
from fellow Kering brands, brands which are owned by conglomerate
competitor LVMH as well as other established fashion houses.

COMPETITION IN MIAMI
Competition in the luxury market in Miami, Florida is extremely high. Saint
Laurent’s Miami location directly competes with many of the brand’s competitors
on a retail level. Based on Saint Laurent’s target customer as well as the
demographic that attends Art Basel Miami, Alexander McQueen, Gucci and
Versace are Saint Laurent’s direct competitors. All of the following mentioned
brands cater towards a modern, chic customer.

COMPETITIVE STRENGTH ASSESSMENT
Product quality rating is based on the average price of a ready-to-wear piece from each brand. Brand image scores were
based on observations made when viewing the brands through multiple platforms, paying close attention to cohesion.
Product assortment scores were given based on the variety of product categories each brand offers. Store size scores are
given based on the square footage of each brands store in Miami, Florida. Alexander McQueen’s stores range from 2,000
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
largest retail stores at 40,000+ sqft. Social media scores were assigned based on each brands’ upkeep of their social media
platforms as well as which avenues they exist in.
INDIRECT COMPETITION
With Saint Laurent’s pop up shop opening for the duration of Art Basel, Art
Basel itself is Saint Laurent’s biggest indirect competitor. People attending the
event will be spending money on art pieces and memorabilia. Art Basel’s 250
galleries host the works of art created by over 4,000 artists from around the
globe. In addition to buy art, Art Basel go-ers will also be spending money on
dining as well as on nightlife.

TARGET

CONSUMER

TARGET DEMOGRAPHIC
INFORMATION
PSYCHOGRAPHIC INFORMATION
Miami native
Miami tourist, especially Latin
Gender: Women
Age: 25-55
High level of education: university
Income $65,000+
Confident self-image
Purchasing motives: Fashion forward
Art as a hobby
Enjoys traveling
Cultural
Not a price sensitive customer
Independent
Enjoys designer and luxury items
Loyal to the brand- buys different items across
the product range
Europe: France, Germany, Italy, Monaco, Poland, Russia, Spain, Turkey, Ukraine, United Kindom
North America: Florida, California, New York, Texas Hawaii, Las Vegas, Los Angeles, New York, Jersey
GEOGRAPHIC SPAN
Asia: China, Hong Kong, Indonesia, Japan, Macau, Malaysia, Singapore, South Korea, Taiwan, Thailand
Africa and Middle East: Kuwait, Lebanon, Morocco, Saudi Arabia, United Arab Emirates, Azerbaijan

ADDITIONAL DEMOGRAPHICS
According to Modern Luxury- “The Luxury Consumer,” the average luxury household income in Miami
is $372,800. Seventy percent of them hold college degrees and 26% have post-grad degrees.
Direct Economic Impact of overnight visitors to Miami is estimated by a monthly profile study or visitor-reported
spending. $18.8 billion in direct expenditures was generated in 2010 in Miami, and if the industry
accepted a multiplier of 1.5, the economy of Greater Miami expenditures would exceed $28.2 billion through
the direct and indirect impact.
In 2010, the visitor industry showed improvement with a 5.6% increase in overnight visitors in to Miami.
An estimated 12.6 million visitors stayed at least one night in Miami. The most popular visitors to Miami
ages ranged from 35-54.
Tourist-wise, the weather and cultural attractions like Art Basel attract visitors to Miami. According to
the source Synovate, a graph states that domestic visitors ‘definitely’ or would ‘very likely return.’ Specifically,
the return rate is set at 96.1% -- a consistent range of return percentage from 2006-2010. International visitors
in 2010 stated most were ‘likely to return,’ at a 97.5% return rate. Canada, Brazil, Argentina, Columbia, Germany,
and Venezuela are the countries with the most popular international visitors to Miami.
The overall total amount of foreign visitors increased from 6.6% from 2009 - 2010. International travelerS
on average spent $121.1 billion in Miami in 2009. Miami is the second most popular city to visit by international
visitors (Greater Miami Conventions and Visitor’s Bureau Annual Report, 2010).

LIFESTYLE/ PSYCHOGRAPHICS
This segment of target Saint Laurent consumers can be broken down into three categories.
Luxury as functional: This segment is composed of consumers who buy luxury products for their superior
functionality and quality. They usually involve themselves in a longer decision making process in order to
make rational and logical decisions, rather than emotional or impulsive ones.
Luxury as reward: This segment purchases luxury goods in order to showcase their achievements. They
are motivated by their desire to be successful and demonstrate this to others. They usually purchase ‘smart’
luxury that demonstrates importance while not leaving them open to criticism.
Luxury as indulgence: This group’s purpose for luxury goods is to self-indulge. They are willing to pay
a premium for goods that express their individuality. They enjoy luxury for the way it makes them feel, and
therefore have a more emotional approach to purchases.
Luxury consumer’s leisurely activities include sports such as tennis and golf, going shopping and fine
dining. They also enjoy cooking at home, wine tastings and going to concerts. They are likely to play tennis
and golf and indulge in spa treatments. Traveling and enjoying the arts through various activities are important
to this segment, as well.
These consumers recognize the ethical values of the brands they frequent. Quality and exclusivity are
also very important to these customers, who appreciate uniqueness. Because of this, they have a loyalty to their
favorite brands (Milken Institute, 2010).
Latin Americans come a couple times a year with suitcases to avoid heavy taxes in
their home countries.
BEHAVIORAL INFORMATION
Shopping is usually an all-day affair.
Miami is all about Luxury shopping and designer brands. The Miami Luxury is
tech-savvy and uses social media platforms such as: Instagram, Twitter, Facebook,
Pinterest, and designer apps.
Instagram in particular is popular in sharing and posting Miami fashion.

STORE LOCATION,

DESIGN & PRODUCT

JUSTIFICATION FOR
LOCATION SELECTION
PRIZM SEGMENTATION
Art Basel Attendees/ Pop-Up Customers
01 - Upper Crust: The nation’s most exclusive address, Upper Crust is the wealthiest
lifestyle in America haven for empty-nesting couples over 55 years old. No segment has a
higher concentration of residents earning over $200,000 a year or possessing a postgraduate
degree.
04 - Young Digerati: Young Digerati are the nation’s tech-savvy singles and couples living
in fashionable neighborhoods on the urban fringe. Affluent, highly educated and ethnically
mixed, Young Digerati communities are typically filled with trendy apartments and
condos, fitness clubs and clothing boutiques, casual restaurants and all types of bars-from
juice to coffee to microbrew.
07 - Money & Brains: The residents of Money & Brains seem to have it all: high incomes,
advanced degrees and sophisticated tastes to match their credentials. Many of these citydwellers,
predominantly white with a high concentration of Asian Americans, are married
couples with few children who live in fashionable homes on small, manicured lots.
16 - Bohemian Mix: A collection of young, mobile urbanites, Bohemian Mix represents
the nation’s most liberal lifestyles. Its residents are a progressive mix of young singles and
couples, students and professionals, Hispanics, Asians, African-Americans and whites. In
their funky rowhouses and apartments, Bohemian Mixers are the early adopters who are
quick to check out the latest movie, nightclub, laptop and microbrew.
26 - The Cosmopolitans: Educated, midscale and multi-ethnic, The Cosmopolitans
are urbane couples in America’s fast-growing cities. Concentrated in a handful of
metros-such as Las Vegas, Miami and Albuquerque-these households feature older
home-owners, empty-nesters and college graduates. A vibrant social scene surrounds
their older homes and apartments, and residents love the nightlife and enjoy leisure-intensive
lifestyles (Claritas, 2014).

ESTIMATING COMPETITION
From December 1 - 7, 2014, a week long arts festivity called Miami Art Week takes places.
Approximately twenty art fairs participate, positioned in the area between Miami’s Wynwood
Art District, Downtown Miami and Miami Beach.
Miami Beach Art Fairs outside of Art Basel include: Aqua Art Miami, Design Miami, Ink
Miami, NADA Art Fair, PULSE Miami, SELECT Fair, Scope Miami, and Untitled.
Additional Miami Art Fairs include: Art Miami, ArtSpot, Concept-Fair, CONTEXT,
Fridge Art Fair, Miami Photo Salon, Miami Project, Miami River Art Fair, Pinta, PRIZM,
Red Dot Art Fair, Sculpt Miami, Spectrum
SALES POTENTIAL
In 2013, a total of 75,000 visitors visited Basel over five days, with more projected in 2014.
Basel currently has nearly 500,000 sq feet of exhibition space.
The space offers more than $3 billion of art (Claritas, 2014).

AREA ATTRACTIONS:
EVOLUTION OF MIAMI’S
DESIGN DISTRICT
Craig Robins, the developer responsible for bringing to life a good portion of the rehabilitation of South Beach, was also responsible
for the overhaul of the Design District in Miami. Starting with his real estate development company, Dacra, in the late ‘80s, Robins renovated
Art Deco hotels on Ocean Drive and helped transform Lincoln Road in South Beach. Along with Sam Keller, he convinced Art Basel to come
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,
and the latter has been the catalyst in the overhaul of the Design District.
The Design District is the area north of Miami’s downtown core, near Northeast 40th Street and Northeast Second Avenue, earning its
design moniker many years ago in the 1920s, when Theodore Moore built the first furniture showroom, Moore & Sons, there. Fast-forward
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
there sells for more than $1,000 per square foot.
In 2011, Louis Vuitton announced their conglomerate shops would abandon their Bal Harbour Shops in favour of a building in the
Design District. Louis Vuitton says it is part of their “pioneering spirit” to make such a move. Robins envisioned a neighborhood advocating
creativity in all lifestyle aspects, and this move has propelled that push forward. Robins then brought arts and culture events like Art Basel to
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,
at the time CEO of Fendi. Burke then brought Fendi Casa to the area, thus bringing the rest of LVMH there.
Luxury real estate from L Real Estate soon followed as the fast-burgeoning market from the post-recession influx of Brasilian, Venezuelan,
Mexican and Russian money. The Design District offered luxury retailers a way to stand out in Miami’s fashion market, away from
established retail markets such as Aventura and Bal Harbour. Now, luxury retailers outside of LVMH including Hermes, Ermenegildo Zegna,
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
luxury experience.
Another advantage of the Design District is that retailers are free to design whichever space they choose. Robins has given retailers
the freedom to build elaborate and unique storefronts to imprint their brand identities. The district draws the artisan vibe of Saint Germain
in Paris and luxury retail district of Midtown Manhattan, bringing together the influx of Latin American and European markets (MiamiDesignDistrict.net,
2014).

AREA FACTORS
Pedestrian traffic
In 2013, 75,000 visitors came through Art Basel, and that number is expected to increase by at least another 5,000 visitors.
Public Transportation
Free shuttle buses from the Miami Beach Convention Center (hosting Art Basel) transfer to major cultural institutions in
Miami. Metro rail or MetroMover can be taken to the Adrienne Arscht Center/Omni Terminal Station, and then a bus to
Wynwood can be taken. City of Miami Trolley will have a special route going to the Art Basel Miami Week Loop, operating
from 11am to 10pm. Bus routes including the C, S, M and 120 to MacArthur Causeway, Miami Beach. Tri Rail from Broward
or Palm Beach goes to Miami Beach.
Parking at Basel
Parking passes are valid for the parking garage on the corner of 17th Street and Convention Center Drive, ordered at a price
of $150. Metered street parking in Miami Beach is taken on a first-come basis.
Dates and rates of Basel
There are two types of showings at Art Basel. The first is the Private view: Wednesday, December 3, 2014, 11am to 8pm
(by invitation only). Afterwards, the Public days run from December 4 - 7, 2014. A Day ticket rate is $45 and a Permanent
ticket is $100 (Artbasel.com, 2014).
REQUIRED HUMAN RESOURCES
Four (4) bi-lingual (Spanish and English) full-time sales staff members from Saint Laurent stores must be present at all times
during selling time.
Four (4) additional construction crew from Tom Fruin (artist commissioned to build external structure; crew fee accounted
in commission price).
One (1) security guard.

DESIGN OF PHYSICAL SPACE

Promotion Rational
DETAILS OF PHYSICAL SPACE
This retail space itself becomes an art piece that also symbolizes the brand of Saint Laurent through the accents incorporated in
the design.
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
work, Composition with Large Red Plane, Yellow, Black, Gray, and Blue. Similar to stained glass, each square is colored and slightly opaque,
creating an open feeling.
Nickel and marble, as well as the logo are featured throughout the space, reflecting the designs of Saint Laurent stores. The ambiance
is created as homage to Saint Laurent through the large framed portrait, bouquets of roses on tall votives, and luxurious Persian rugs.
A white marble table sits below the portrait of Saint Laurent holding candles, also adding to the ambiance.
The visual merchandising features a large marble cube in the center of the shop representing both Saint Laurent and Mondrian,
and presents the merchandise in a way that allows the customers to handle the products. Our merchandise assortment will include a
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
incorporating a Mondrian-inspired print.
Other fixtures include the 10 hanging light fixtures, as well as the nickel plated frames holding four screens along the walls of the
shop, running footage of Saint Laurent and his iconic works. These screens provide an educational experience of the brand to unfamiliar
customers. Two transaction stations on either side of the shop hold four iPads, which will be used to complete customer transactions.
These stations are also used to hold merchandise behind the counters. We will also have one security guard at the pop-up-shop during
operating hours.

OUTSIDE OF POP-UP

INSIDE OF POP-UP

STYLE COLOR SIZE
RETAIL
PRICE
# OF UNITS
Mondrian
print
N/A $1,500 100
TOTE BAG
Mondrian
print
N/A $245 300
CARD HOLDER
Mondrian
print
N/A $195 1,000
KEYCHAIN
Mondrian
print
N/A $325 1,000
SCARF

COMMUNICATION &

PROMOTIONAL PLAN

SCHEDULE OF PROMOTIONAL ACTIVITIES
MEDIA
Inventations sent to magazine
editors, and high profile
customers
PRE-­‐LAUNCH DURING POST LAUNCH
18-­‐Nov 25-­‐Nov 2-­‐Dec 3-­‐Dec 4-­‐Dec 5-­‐Dec 6-­‐Dec 7-­‐Dec 14-­‐Dec 21-­‐Dec
Key Chain giveaway to bloggers
In-­‐store flyers
Reusable bag giveaway
Mentions & features in
prominent Latin lifestyle
magazines
Saint Laurent Social Media

RATIONALE Promotion Rational FOR PROMOTIONAL ACTIVITIES
The pre-launch promotion for the pop-up shop begins two weeks prior to the launch of the event. Inventions
for the pop-up will be sent out to the editors of prominent Latin lifestyle and fashion magazines, high net worth individuals
who attend Art Basel, and VIP customers of Saint Laurent. A select number of key chains will be sent to online
bloggers in order to gain hype for the limited edition merchandise. Flyers promoting the event will also be place in
Saint Laurent’s Miami retail location.
On the first public day of Art Basel, attendees have the opportunity to receive one of five hundred reusable
shopping bags with a unique design relating to the pop-up shop. The reusable bags allow for patrons of Art Basel to
carry the numerous amount of literature received from the many art galleries. The reusable bags also act as constant
promotion for the pop-up shop as people carry them around the event.
Post-launch promotion for the pop-up shop takes place within the Latin lifestyle and fashion magazines, such
as Vogue Mexico, Harper’s Bazaar Mexico and Vanity Fair Spain.
In addition to the activities mentioned above, Saint Laurent will be posting promotional material about the
pop-up shop through social media platforms such as Instagram, Facebook and Twitter.
Due to the short time frame of the event and the limited product assortment, the return on investment for the
Saint Laurent pop-up shop is extremely high. Marketing and promotion initiatives total $4,569 out of goaled revenue
of $587,000.

FINANCIAL

PLAN

INTERIOR FIXTURES
Screen Fixtures
Ceiling Lights
Custom Merch. Cube
Custom Transaction tables
Marble Altar
UNIT COST UNITS COSTS
INTERIOR FIXTURES
UNIT COST UNITS COSTS
$300.00 4 $1,200.00 Footfall
$20.00 10 $200.00 Conversion Rate
Screen $1,000.00 Fixtures
1 $1,000.00$300.00 4 $1,200.00 Average Basket
Ceiling $2,000.00 Lights
2 $4,000.00 $20.00 10 Revenues $200.00 (80% of total merchendise)
Custom Merch. Cube
$1,000.00 1 $1,000.00
$3,000.00 1 $3,000.00
Custom Transaction tables
$2,000.00 2 $4,000.00TOTAL
EXTERIOR FIXTURES
Marble Altar
$3,000.00 1 $3,000.00 PRODUCTS
Structure
$100,000.00 1 $100,000.00 Beach Tote
EXTERIOR FIXTURES
TOTAL
$ 109,400.00
Business Card Holder
Structure
$100,000.00 1 $100,000.00
Keychain
TOTAL
$ 109,400.00
EXPENSES UNIT COST UNITS COST Scarf
Cost of Goods Sold x EXPENSES 2400 $92,949.00 UNIT COST UNITS COST EARNINGS (BEFORE TAX)
Inventory Storage $65.00
Cost of Goods Sold
1 $65.00
x 2400 $92,949.00
Inventory Storage $65.00 1 $65.00
Art Basel Fee $43,000.00
Employee Wages
1 $43,000.00
$30/hr 4 $6,360.00
100%
Art Basel Fee $43,000.00 1 $43,000.00
Medium Bags $2.56 2000 $5,120.00
Tissue $0.05
Large Bags
8880 $444.00
$3.62 110 $398.20
Business Card Box $2.00Medium Bags 310 $620.00$2.56 2000 $5,120.00
Keychain Box $1.80 Tissue 1030 $1,854.00 $0.05 8880 $444.00
Scarf Box $4.00 Business Card Box 1030 $4,120.00 $2.00 310 $620.00
Tote Dust Bag $0.60Keychain Box 110 $66.00$1.80 1030 $1,854.00
Scarf Dust Bag $0.45 Scarf Box 1030 $463.50$4.00 1030 $4,120.00
Small dust bag $0.35Tote Dust Bag 1340 $469.00$0.60 110 $66.00
Boxed Water $1.25Scarf Dust Bag 1500 $1,875.00 $0.45 1030 $463.50
iPads $500.00 Small dust bag 4 $2,000.00 $0.35 1340 $469.00
Flower Votives $100.00Boxed Water 2 $200.00$1.25 1500 $1,875.00
Framed Large Print $500.00 iPads 1 $500.00 $500.00 4 $2,000.00
External iPad Chargers $20.00Flower Votives 4 $80.00$100.00 2 $200.00
Sound System $1,000.00 Framed Large Print 1 $1,000.00 $500.00 1 $500.00
Candles $2.00 External iPad Chargers 250 $500.00$20.00 4 $80.00
Flowers 500/day Sound System 2/bouquets day $2,500.00 $1,000.00 1 $1,000.00
Wire to hang picture $30.00 Candles 1 $30.00$2.00 250 $500.00
iPad Stands $10.00 Flowers 2 $20.00500/day 2/bouquets day $2,500.00
Custom Water box $100.00 Wire to hang picture 2 $200.00$30.00 1 $30.00
Small persian rugs $50.00 iPad Stands 4 $200.00$10.00 2 $20.00
Content Screens $500.00 Custom Water box 4 $2,000.00 $100.00 2 $200.00
Security Guard Wage $20/hr Small persian rugs 1 $1,060$50.00 4 $200.00
Content Screens $500.00 4 $2,000.00
Security Guard Wage $20/hr 1 $1,060
Invitations $4.00 500 $2,000.00
ADVERTISING/MARKETING EXPENSES UNIT COST UNITS COST
Giveaway Keychains $24.38 50 $1,219.00
Giveaway Reusable Bags $0.70 Invitations 500 $350.00$4.00 500 $2,000.00
In-­‐store Flyers $1.00 Giveaway Keychains 1000 $1,000.00 $24.38 50 $1,219.00
Giveaway Reusable Bags $0.70 500 $350.00
TOTAL $172,662.70
In-­‐store Flyers $1.00 1000 $1,000.00
Employee Wages $30/hr 4 $6,360.00 SELL THROUGH %
Large Bags $3.62 110 $398.20 80% (Goaled)
ADVERTISING/MARKETING EXPENSES UNIT COST UNITS COST
TOTAL EXPENSES $282,062.70
TOTAL $172,662.70
TOTAL EXPENSES $282,062.70

3-­‐Dec 4-­‐Dec 5-­‐Dec 6-­‐Dec 7-­‐Dec
Footfall 5000 75,000 75,000 75,000 75,000
Conversion Rate 40% 5% 5% 5% 5%
Average Basket $919.00 $823.00 $823.00 $823.00 $823.00
Revenues (80% of total merchendise) $234,800.00 $29,350.00 $29,350.00 $29,350.00 $29,350.00
TOTAL $587,000.00
PRODUCTS UNITS % PRICE 3-­‐Dec 4-­‐Dec 5-­‐Dec 6-­‐Dec 7-­‐Dec
Beach Tote 100 4% $1,500.00 20 20 20 20 20
Business Card Holder 300 13% $245.00 60 60 60 60 60
Keychain 950 40% $195.00 190 190 190 190 190
Scarf 1000 43% $325.00 200 200 200 200 200
EARNINGS (BEFORE TAX) 2350 100% $733,750.00
SELL THROUGH % REVENUE EXPENSES NET PROFIT
100% $733,750.00 $282,062.70 $451,687.30
80% (Goaled) $587,000.00 $282,062.70 $304,937.30
RATIONALE
The first step in creating the financial plan for the Saint Laurent pop-up shop was finding the cost of fixtures
needed. Type of fixtures included interior and exterior fixtures such as lights, transaction tables, and the structure itself.
Then, we found the cost of the expenses of the store and marketing initiatives: wages for employees, Art Basel fee,
invitations, give away bags etc. In addition to the expenses, we estimated the cost of production for the limited edition
merchandise based on an 800% mark up (Business of Fashion, 2014).
We then estimated the average foot traffic, conversion rate and the average basket of our potential customers
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
VIP people and 75,000 people for the rest of the event, the expected attendance rate for the event as a whole. Since the
pop-up shop is located directly outside of the event, we have potential to reach customers who did not purchase Art
Basel tickets, but show up for the festivities. The conversion rate of customers was based on our objective of selling
though 80% of the total merchandise produced. We estimated that 40%, or half of the 80%, of merchandise would be
sold on the VIP day of the event leveraging on a higher average basket than the remainder of the days. 5% of the remaining
40% of merchandise left will be sold each day of the event. Average basket figures were determined through a
list of possible transaction outcomes with the average price paid from those possible transactions. The average basket
is higher on the first day due to more affluent and high profile people attending.

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APPENDIX

x
Pop-Up Shop