PART I: ASSESSMENT OF YOUR RETAIL BUSINESS
All Saints Major Retailer Analysis Andrea Della Mattia, Janeil, Gordon, Elizabeth Kyi, Leanna Silvestri, & Jacqueline Trunks
ALL SAINTS
1
Table of Contents
ASSESSMENT OF YOUR RETAIL BUSINESS HISTORY OF BUSINESS CONCEPT MISSION STATEMENT OBSERVATIONS TARGET MARKET IDENTIFIED T ARGET MARKET MARKET PROFILE MEET ANNA COMPETITOR’S ANALYSIS
COMPETITORS: WILFRED & CLUB MONACO POSITIONING MAP ALL SAINTS COMPETITIVE ADVANTAGE BUSINESS OPERATIONS SWOT ANALTSIS CUSTOMER SERVICE STRATEGY & RELATIONSHIP RETAILING HUMAN RESOURCES MERCHANDISE MANAGEMENT & PRICING
2-3 2 3 3 4-5 4 5 6-8 6 7 8 9-13
RETAIL IMAGE & VISUAL MERCHANDISING MARKETING STRATEGIES PHOTOS
9 9 9-10 10 10 11 11 12-13
OPPORTUNITIES AND THREATS
15-21
OPPORTUNITIES AND RECOMMENDATIONS THREATS
15-19 20-21
CAREER OPPORTUNITIES
22-23
STORE LEVEL COMPANY STRUCTURE CORPORATE LEVEL COMPANY STRUCTURE
22 22-23
LOCATION
WORKS CITED
2
ALL SAINTS
24
PART I: ASSESSMENT OF YOUR RETAIL BUSINESS
HISTORY OF BUSINESS CONCEPT The All Saints private label brand was established e stablished in 1994 by Stuart Trevor and Kait Bolongaro in Notting Hill, London, named after the hip and trendy All Saints Road, which was at the forefront of up-and-coming music and design talent. The company started out as a menswear wholesaler, selling grunge-inspired designs exclusively to high-end retailers such as Harvey Nichols and Harrods. The first official store opened on November 1st , 1997, All Saints Day, in Foubert’s Place, London and shortly thereafter All Saints launched its first womenswear collection in 1998. All Saints quickly became a well- known chain boutique in the 90’s and has since developed into a large-scale global fashion retailer. retailer . Between mid-2004 and 2005, Kevin Stanford, a prominent fashion financier, bought out all of the All Saints partners, thus holding a majority stake, with the exception of Stuart S tuart Trevor, who was later, bought out in December 2005. In 2006, Icelandic investment firm, Baugur Group, bought 35% share of the All Saints brand, still leaving Kevin Stanford as the majority shareholder. However, by April 2011 the collapse of Baugur Group and the mismanagement by Kevin Stanford resulted in a €53 million debt. In May 2011, British private equity firm Lion Capital LLP, headed by Lyndon Lea, and Goode Partners purchased 76% stake of All Saints for €105 million. This takeover effectively saved All Saints from collapse, as the firm hired eight new top executives, which, combined with a decrease in inventory production following poor sales in 2011, resulted in a 50% profit increase by 2012. As of March 2012, Lion Capital LLP owned 85% share of All Saints. All Saints launched their e-commerce website in 2006 and their U.S.-specific site in 2009. The brand launched their first fashion campaign for Fall/Winter 2012 in the form of a short film. The influence of the brand’s new CEO, William Kim who was the senior vice president of retail and digital commerce at Burberry, combined with the brand’s involvement with music and digital media led to the development of a fully operational film company company in 2013. The film company focuses on documentaries on music, style, and street influences. All Saints first showcased their collection at New York Fashion Week in September 2013 for their Spring/Summer 2014 collection. The non-traditional fashion show, with a multi-faceted mash-up of music, fashion, and digital media, was streamed on their website and highlighted the brands increasing engagement with digital fashion. As of present date, All Saints has 70 standalone and 70 concession stores globally, including 30 U.S. locations, the first of which was New York City. Other cities include Los Angeles, which opened in 2010, San Francisco, Berlin, Paris, and most notably Toronto in Yorkdale mall on April 4 th, 2013. Its global head office is located loc ated in London with regional offices located in New York, Shanghai, Hong Kong, Delhi, Istanbul and Porto. In total, All Saints has operations established in twelve countries with over 2500 employees. All Saints plans to open 30-50 stores globally in the next three years, with expansion across North America and Asia. ALL SAINTS
3
MISSION STATEMENT All Saints is a design-led company versus a customer-led company at a bridge price point that aims to be a brand and market leader. The brand thrives on a culture of design, inspiration, and innovation and provides opportunities that enable individualism, whilst also being part of a dynamic, forward-thinking forward-thinking team. Its mission statement encompasses the brand’s goal: “To create a brand that blends culture, fashion, and music into a potent formula of desirable clothing that expresses individuality and attitude.”
Their mission statement permeates all design decisions, marketing initiatives, initiatives, and retailing strategies. It is important to All Saints and ambassadors of the brand that employees are a diverse group with an entrepreneurial spirit combined with creativity, passion, honesty, and humility. Core brand values include:
humility decisiveness loyalty hunger
honesty instinctiveness individuality dedication
OBSERVATIONS All Saints is as much about clothing as it is about a unique brand experience, one that begins as soon as a shopper walks into the All Saints store. The aesthetic of the store is based on an early age industrial open concept design with moody, dark lighting, vintage Singer sewing machines and ram skulls lining the walls, worn wooden floors and exposed brick. At first glance the clothing seems distressed, ragged, and untailored, but upon closer inspection the glam-meets-grunge clothing is shown to be of exceptionally high quality, using luxurious materials to create hand-beaded, stitched, and tailored clothing. Both the clothing and the brand are edgy, unique, and most importantly rock-inspired which keeps the aesthetic on trend and fresh for style-savvy style -savvy consumers.
4
ALL SAINTS
PART I: TARGET MARKET IDENTIFIED All Saints is a fashion retailer from the UK, currently executing an expansion plan he Canadian market. All Saints’ target customer is a male or female ranging into t he from the age of 18-50. Their customer has a strong appreciation for the arts, with a special emphasis on music and film. The retailer’s unique aesthetic ca ters to a niche market that appreciates the culture of the brand as much as the actual purchased product. The All Saints customer is on the cutting-edge of fashion and wants to incorporate a sense of individuality into their style. All Saints occupies a niche in the market that appeals to an up-scale, but edgy and powerful attitude and image. TARGET MARKET PROFILE CATEGORIES Geographics
Demographics
VARIABLES Region City or Census Metropolitan Area Size Density Climate Age Gender Family Size Stage in Family Life Cycle
Income Occupation
Education Ethnic Background Home Ownership Psychographics Personality
Behaviouristics
Lifestyle Benefits Sought
Usage Rate User Status Loyalty Status
BREAKDOWN Canada, USA, Europe, Asia 1,000,000+ Urban Any; Cold OR Warm Warm 18-50 Male or female; predominantly female 1-4 - Young single adult - Young married, no children - Young married, with children - Older married, no children - Older married, with children - Older single adult $65,000+; high disposable income - Professional - Managerial - Sales - Works in the fashion industry or another creative field such as music or film College or University graduate All ethnic backgrounds; backgrounds; middle to upper upper class Owns or rents home Trendy, creative, innovative, edgy, entrepreneurial, style conscious, grungy, music-lover - Unstructured and creative - Style - Quality - Individuality Medium to heavy user First-time or regular user Medium-high; many regular, returning customers ALL SAINTS
5
ANNA Meet Anna, she is 31 years old and is the creative marketing director of a well-established fragrance and cosmetics line, where she makes an annual income of approximately approximately $100,000. Anna lives in the heart of downtown Toronto in a high-rise condominium. She is single, but remains fiercely loyal to a select group of close friends and family. She also keeps a small daschund, named Toby, whom she walks daily. daily. She is extremely involved in supporting local culture and the arts. Many of Anna’s friends have chosen to pursue a career in the creative fields of film or music. She is constantly engaged in cultural movements and artistic endeavours. She enjoys listening to up and coming artists, testing out the newest and hippest restaurants and bars, and shopping at the most exclusive retailers. According to the VALS™ framework, Anna is considered an innovator. She is hard working and proactive, and lets nothing interfere with her choices when it comes to business and style. Anna is on the cutting edge of fashion, and she is open to trying new styles and trends before they become popular in the marketplace. Anna seeks exclusivity and raw, handcrafted quality. She is drawn to things of a sophisticated nature, and appreciates the endurance of a quality garment. She is willing to pay a higher price point for items that will last many years in terms of their aesthetic relevance and the quality of construction. Innovators like Anna tend to shop within niche markets. She enjoys stepping ste pping beyond the traditional large chain stores and shopping mall staples for a shopping experience that offers exceptional service, atmospherics, and brand associations. All Saints offers Anna the large s election and combination of staple and statement garments that makes the retailer her go-to for many occasions, be it a night out to see a new band or a day at the office. All Saints offers Anna lasting pieces, while still keeping up with moving trends. Image is everything to Anna, not to signify her personal wealth, but to express her tastes, personality and independence.
By building such a strong identity on culture, All Saints is able to appeal to a wide range of customers, developing a target market that is defined more so by attitude and taste than demographic qualities, as there is “no typical All Saints shopper.”
6
ALL SAINTS
PART I: COMPETITO R’S ANALYSIS ALL SAINTS All Saints is a private label retailer that sells vintage-inspired womenswear, womenswear, menswear, footwear, and accessories and is currently only located at Yorkdale Mall within Toronto. The brand aims for a trendy, style-conscious niche with a target demographic of 18-50. All Saints products are sold at a bridge price point, meaning that it is right below the luxury price point, and sits between the high street and contemporary fashion. The brand sells quality products with a European sense of style and a rocker-chic aesthetic and is positioned positioned as affordable luxury. All Saints sets itself apart from the competition by following a design-led approach that aims to set trends, not follow them. The store is located in the new wing of Yorkdale mall, which tends to cater to more expensive, trendy, and high-end retailers. CLUB MONACO At an average price point comparative to All Saints, and a similarly fashion forward mentality, Club Monaco competes for the same consumer dollar as All Saints. Club Monaco targets a broad and varied target market, attempting to transition from a store that offered staple pieces to a fashion forward retailer taking inspiration from global street style, particularly New York. The target market ranges from 25 – 55 male and female young professionals with an urban casual style. The brand offers both key basic items, and products in the most current colours, prints, and silhouettes. Club Monaco also occupies a position in Yorkdale mall directly across the hall from All Saints, ensuring foot traffic that naturally travels into both stores. WILFRED Wilfred targets a slightly different consumer than All Saints, but maintains a similar product positioning in terms of price and fashion-forwardness. fashion-forwardness. Wilfred is a private label brand from the popular Canadian young adult retailer, Aritzia, and thus targets the older, more established, and more fashion forward customer of Aritzia’s overall target market. This consumer is aged approximately 19 – 35, may be in school, graduating from a post secondary education, or entering the work force in a creative field. Like Club Monaco, Wilfred occupies space in the new wing of Yorkdale mall with All Saints, alongside stores such as Kate Spade, John Varvatos, Holt Renfrew, and Ted Baker.
ALL SAINTS
7
PART I: COMPETITO R’S ANALYSIS POSITIONING MAP
ALL SAINTS
8
PART I: COMPETITOR’S ANALYSIS
9
CLUB MONACO vs. ALL SAINTS Club Monaco occupies a price bracket that is close enough to All Saints to attract the same customer, but remains slightly lower, giving them the competitive advantage of price. Their aesthetic is also different from All Saints in that they offer product that maintains a very strong colour story, often involving brights and pastels. They like to incorporate a signature collection print that they repeat in multiple items throughout each monthly collection. Club Monaco continuously maintains a few signature staple items their customer relies on them for. All Saints offers less diversity in styles, maintaining a colour story in the neutrals season after season, and maintains a strong cohesive element in all of their styles. Both Club Monaco and All Saints have their own competitive advantage. Club Monaco supplies on trend colours, prints and silhouettes for the constantly evolving consumer. In contrast, All Saints offers a very consistent aesthetic that appeals to a loyal customer and features staple items and investment pieces in neutral colours, with a more edgy and grungy aesthetic. Furthermore, though Club Monaco offers a limited selection of leather goods, including jackets and shoes, it does not have the leather -centric focus that All Saints has, which allows All Saints dominance in the leather market in comparison to Club Monaco. WILFRED vs. ALL SAINTS Wilfred offers a product assortment that, similar to All Saints, focuses on lasting silhouettes and neutral colours to maintain dominance in the basics market. However, Wilfred targets a younger segment of a similar target market. They have a competitive advantage in the sense that their product, through price point and branding, may appeal more to a younger generation of consumers. Furthermore, if they have a similar product offering, they may attract some of All Saints target market due to their competitive pricing. However, All Saints may maintain their customer base with quality garment construction and quality fabrics, such as cashmere, silk, and lamb’s leather, which are not as prevalent in Wilfred. All Saints also offers strong competition through their culture, which promotes customer loyalty and creates brand associations that may encourage consumers to maintain loyalty to All Saints over Wilfred, which has relatively fewer interactive brand culture elements than All Saints. ALL SAINTS COMPETITIVE ADVANTAGE All Saints holds a competitive advantage over retailers such as Club Monaco and Wilfred in that it is a brand that encompasses a brand experience in addition to offering trend-setting and stylish clothing. Despite selling at a higher price point than Club Monaco and Wilfred, All Saints offers investment pieces in luxurious materials with exceptional tailoring and a consistent aesthetic. Consumer loyalty is strong and All Saints has a high standing image and reputation based on perceived value, quality and directional creativity. ALL SAINTS
9
PART I: BUSINESS OPERATIONS SWOT ANALYSIS
STRENGTHS
Customer service strategy & relationship retailing Human Resources Location of retailer Retail image/visual merchandising management
OPPORTUNITIES
WEAKNESSES
Merchandise management and pricing Current marketing strategies
THREATS
CUSTOMER SERVICE STRATEGY & RELATIONSHIP RETAILING: STRENGTH All Saints’ prioritizes customers’ in store experience. They always keep a fully staffed floor to ensure all customers entering the store are se rviced individually. individually. They also often have greeters in the entryway to welcome customers i nto the store. Associates are welcoming and available for assistance. The store layout also offers a comfortable environment, including spacious change rooms, to encourage customers, as well as the friends and family shopping with them, to spend time in the store. Sales associates are knowledgeable about sizing and styling and quick to offer potential outfitting options. At point of sale, the cashier takes the customer’s email before processing every transaction in order to build a record of transactions in their customer profile. However, mass promotional emails are rare, even to those who opt to subscribe to their mailing list. The customer email capture provides clienteling opportunity, allowing associates who work frequently at styling one customer to reach out to them personally with information about new collections, products they may like, sales and promotional events that might appeal to them.
HUMAN RESOURCES: STRENGTH All Saints approached their human resource management from a business savvy perspective in their Canadian opening, with the intention of developing a highly skilled and well-trained team of professionals to manage the flagship Canadian location. In preparation for the Canadian grand opening, the Yorkdale location brought in an upper management team from the All Saints UK team and used a combination hiring method that involved direct recruiting and open call interviews. The HR team researched the area and its talent in order to build the most effective team of managers and sales associates. They then leveraged the connections of the newly acquired Canadian management team and recruited the strongest selling ALL SAINTS
1 0
PART I: BUSINESS OPERATIONS talent in the city. In the hiring process, All Saints placed a heavy emphasis on appreciation of the brand culture in prospective hires in order to ensure employees were passionate and well versed in the culture that is so heavily incorporated into the business model. In doing so, associates embody the identity of the target customer, allowing associates to easily relate to the All Saints consumer on a personal level, facilitating sales and client relationships. MERCHANDISE MANAGEMENT & PRICING: WEAKNESS The average price point of All Saints product emphasizes the exclusive e xclusive brand image. The price point may limit the brand’s accessibility to consumers of a lower socio-economic status. However, the price point also creates a sense of exclusivity that elevates the brand against other competitors in the Canadian market. By positioning themselves at a bridge price point just below luxury pricing, All Saints appeals to a wide range of the market that appreciates luxury product, but may not have the means to afford the luxury price point. The merchandise management of the first Canadian location faces limitations in inventory replenishment due to such issues as duties and shipping. The fact that Yorkdale All Saints is the only Canadian location thus far also presents allocation issues. There is no alternative retail location to move product to if an item is a poor performer. Stores are not able to test success at different locations so allocations to Canada must be carefully thought out and risk must be minimal, which poses issues with regards to product selection and sizing. Size availability may be limited in the beginning while All Saints is testing the market and determining the most effective size distribution. LOCATION: STRENGTH The location of All Saints within Yorkdale mall is a business strength. They occupy a position in the most recently developed wing of the mall, alongside their primary competition, Club Monaco and Wilfred. Their close proximity to the competition ensures their target consumer is exposed to the new store and draws in foot traffic of customers who may not otherwise have known about All Saints. It also benefits the business to be located near such stores as John Varvators, Holt Renfrew, Stuart Weitzman, Kate Spade, and other relatively high price point retailers because it positions the retailer at an approachable price point in comparison to their designer competition. Through location, they position themselves at a bridge price point between average and luxury. All Saints also benefits from being location in the most newly renovated area of the mall, by positioning itself as the cutting edge, most current of fashion retailers in Yorkdale. Conversely, the retailer’s sole locat ion ion in Yorkdale mall limits their potential customer reach. Yorkdale mall is located outside of the downtown core, which makes it inconvenient for urban dwellers. Through expansion, All Saints ALL SAINTS
1 1
PART I: BUSINESS OPERATIONS meets opportunity in expansion throughout the urban core, which would give the retailer access to the younger sector of their target market. RETAIL IMAGE & VISUAL MERCHANDISING: STRENGTH All Saints allocates a lot of manpower and resources to visual merchandising and store experience. Though other stores such as J. Crew, Club Monaco, Diesel, and Ted Baker engage in extensive store experience practices, few compare to All Saints in their ability to incorporate brand culture into their visual merchandising. There is also no other store in Yorkdale with a comparable visual merchandising theme and bold, dark aesthetic. Everything in the store, from wall texture to small fixtures maintains a very edgy, industrial aesthetic. From outside the store, there is a floor to ceiling display of vintage Singer sewing machines arranged in a backlit grid composed of black wrought iron behind a glass casing. Upon entering the All Saints Yorkdale location, the lighting and atmospherics creates an environment entirely separate from the rest of the mall. The shelving and fixtures feature what looks like old piping, the furniture is made of heavy wood or rustic looking metal, and the fitting room doors are large and strong looking with heavy metal hinges and locks. All Saints optimizes every available opportunity to convey the brand’s image and culture with their visual merchandising efforts. MARKETING STRATEGIES: WEAKNESS All Saints’ marketing strategies are extensive and successfully create a strong and cohesive brand image. They do not take the form of traditional paid advertisements. Instead their marketing focus primarily centralizes around their involvement in music and film. By creating their own short films and exploring and sharing local musical talent, All Saints raises brand awareness through non-traditional marketing methods and offers customers more than the average shopping experience. The brand also remains very active on Social Media, keeping Twitter, Facebook, Instagram, Pinterest, and YouTube accounts and engaging in constant activity on all platforms. The content of their social media efforts centralize around the product and their music and film involvement. Though the brand’s marketing efforts are prevalent in the UK and New York, their marketing efforts lack penetration within Canada. The films are not as well circulated within Canada as they are within All Saints’ UK and US networks. They also don’t speak to the Canadian music and film industry in their marketing efforts. Because All Saints is so new to Canada, there is a lot of marketing opportunity to feature Canadian musicians, explore Canadian set locations, and reach out to Canadians over social media to raise brand awareness within Canada.
1 2
ALL SAINTS
PART I: BUSINESS OPERATIONS PHOTOS
ALL SAINTS
1 3
PART I: BUSINESS OPERATIONS
1 4
ALL SAINTS
PART II: OPPORTUNITIES & THREATS SWOT ANALYSIS
STRENGTHS
Customer service strategy & relationship retailing Human Resources Location of retailer Retail image/visual merchandising management
WEAKNESSES
OPPORTUNITIES
Retail location expansion Expand customer base Product expansion Service expansion Digital diversification Smartphone e-commerce Increasing consumer spending and disposable income Bridge price point growth Increased marketing and advertising
Merchandise management and pricing Current marketing strategies
THREATS
Economy High competition Changing fashion trends Foreign exchange rates Integration of foreign business concept
OPPORTUNITIES Retail Location Expansion All Saints currently has one retail store in Canada, located in the newly expanded wing of Yorkdale shopping centre in Toronto. The doors opened in April 2013, and the store has been performing well within its new market. The new wing has since welcomed other retailers of a similar price point and target market, such as Stuart Weitzman and John Varvatos, which suggests that the area produces results for brands of this nature. Judging from the success incurred so far for All Saints in Canada, the retailer can confidently move forward in penetrating the market further and opening more Canadian locations. Recommendation: Within the GTA, All Saints could expand their retail locations to
occupy space in other areas of the city that have proven success for ot her retailers at a bridge price point or higher. Shopping districts such as Sherway Gardens, Bloor Street in Yorkville, and Square One Shopping Centre hold promise for All Saints expansion within the GTA. Opening All Saints locations in other Canadian cities such as Montreal, Calgary, Edmonton, Vancouver, Ottawa, Winnipeg, and Quebec City would also increase business for the company, as these cities have large populations with individuals present in All Saints’s target market. All Saints plans on expanding its locations throughout other Canadian provinces to include: Rue Sherbrooke in downtown Montreal; the Core Shopping Centre in downtown Calgary; Manulife Place in Edmonton; Robson Street shopping district in downtown Vancouver; 15
ALL SAINTS
PART I: BUSINESS OPERATIONS Sparks Street in downtown Ottawa; Portage Place in downtown Winnipeg; and Place Ste-Foy shopping centre in Quebec City. Expansion locations are based on shopping districts and malls that have target markets and demographics that match that of All Saints and currently house high-end retailers, such as Holt Renfrew. Expand Customer Base All Saints clothing, footwear, and accessories are sold at a bridge price point, which lies between a contemporary contemporary price point, which describes trendy fashion items at a higher than average price, and designer price point, which caters to the prestige and luxury markets (We Connect Fashion). All Saints could reach a larger target market by offering some lower priced items, within the contemporary price point, alongside their higher priced items in order to maintain an exclusive appeal. Recommendation: In order to reach a
larger target market and increase product sales, All Saints will introduce a lower-priced, contemporary product line called Saint Monica by All Saints. The new merchandise line will include similar items to the original All Saints line with the same aesthetic and quality of construction, but using lower-priced fabrics, details and trimmings trimmings in order to control cost. The line will include knits, blouses, t-shirts, t -shirts, jeans, faux-leather pants and shorts, skirts, and faux-leather jackets. The aim of the secondary line would be to attract a slightly younger demographic who may not be able to afford the luxury products typically offered at All Saints. Ideally, the Saint Monica line would appeal to young innovators and trend setters in Canada in order to increase brand awareness within the local market. By introducing a lower price point, we would also decrease the risk involved for first-time purchasers, which would increase adoption rates and ease the transition into purchasing more expensive items and becoming loyal customers. Product Expansion All Saints currently sells men’s and women’s clothing, accessories and footwear. By expanding their product offering to include a fragrance for men and women, All Saints will not only increase sales, but also further increase their exclusivity by providing private label products that can only be purchased at All Saints retail locations and online. t o include an Recommendation: All Saints will expand their product lineup to exclusive fragrance, named “All Saints”, for both men and women. In creating a signature scent, All Saints will increase customer loyalty and solidify their brand image and associations. Loyal customers will feel more connected to the brand if they adopt All Saints as their signature scent. Similarly, the scent will draw associations with the brand for consumers. The scent would embody the All Saints brand: The women’s scent will have musky body with nutty undertones and subtle notes of magnolia, and the men’s scent will have a cedar base with hints of bergamot and tobacco.
1 6
ALL SAINTS
PART I: BUSINESS OPERATIONS
Service Expansion While All Saints’s customer service strategy and relationship retailing has been assessed as a strength, the company could benefit from including such services as personal styling and clienteling. The retailer’s grungy, edgy, and urban aesthetic is what many customers find appealing and what keeps them loyal; however, adding styling services will build lasting relationships with clients to ensure repeat purchases and encourage customers to develop positive brand associations with All Saints. The personal styling services would take customer service to the next level to make a lasting impression on the Canadian consumer. Recommendation: All Saints will introduce complimentary styling and personal
shopping services that will provide customers with access to the latest styles, trends, and styling inspiration. The ideal stylist-consumer relationship would involve reciprocal communications. Stylists could reach out to loyal customers to offer personalized recommendations and exclusive offers. Conversely, consumers could reach out to their personal stylist to request styling appointments. These services will aid in integrating All Saints merchandise into customers’ existing wardrobes, as well as building wardrobes around All Saints merchandise, hopefully encouraging customers to think of All Saints first when seeking out fashion merchandise. Digital Diversification In 2013, All Saints launched their fully operational film company, which focuses on documentaries about music, style, and street influences. The in-house film company offers ample marketing opportunity by allowing the company to create promotional films for new products, company events, and news. Recommendation: In All Saints newest basement sessions,
the Canadian indie rock band “Arcade Fire” will be featured, with the band and any extras wearing All Saints merchandise. Heavy circulation of these videos on social media will tie together the All Saints brand with its music and film influences. To tie in product expansion with digital diversification, All Saints could produce a promotional film to endorse its new fragrance and market it heavily via social media. As a long-term goal, this film company could expand further to delve into short and full-length feature films, attempting to involve them in local events and film festivals such as TIFF, as a pinnacle. Smartphone E-Commerce All Saints Canada currently uses multichannel retailing, comprised of one brick and mortar retail location and an online retailer that ships to Canada. In 2010, All Saints launched an iPhone application that was only available in the U.S. market. Currently, the All Saints app is not available for purchase in the American App Store. Reintroducing this app for iPhones and creating an app for BlackBerry and Android ALL SAINTS
1 7
PART I: BUSINESS OPERATIONS smartphones has the potential to increase sales for the business by allowing customers to browse merchandise and make purchases easily e asily on their smartphones. Recommendation: All Saints will reintroduce its iPhone app, as well as create one for BlackBerry and Android smartphones. The app will allow customers to browse and shop right on their phones, as well as download music from Canadian indie bands affiliated with All Saints right to their phones. To coincide with the launch of the All Saints app, special events will be held in All Saints retail locations across Canada. As well, customers purchasing items from the app will be privilege to a special introductory discount in order to encourage purchases. Increasing Consumer Spending and Disposable Income According to Statistics Canada, Canadian disposable personal income has been on the rise over the last several years and is predicted to steadily increase over the next few years (Trading Economics, 2014). As well, consumer spending is at an all time high and is expected to continue to rise over the coming years (Trading Economics, 2014). These statistics combined with rising consumer confidence and increasing Canadian retail sales shows that Canada is the perfect market for All Saints to enter with full-force. Recommendation: All Saints will factor in increasing consumer spending and
disposable income trends into their sales plans, and enjoy to staff the floor accordingly. It is crucial that the store be ready for the anticipated sales volume with well trained sales associates who have a high degree of product knowledge and proven sales abilities. Furthermore, the business will have to allot an adequate payroll budget to ensure the customer to associate ratio never exceeds 5:1, in order to ensure every customer is serviced fully. All Saints will prioritize making a good first impression on consumers by putting their best face forward in their Canadian debut, setting the customer service bar high for future Canadian All Saints locations. Bridge Price Point Growth In recent years, bridge price point fashion brands have been experiencing significant sales growth. These brands have even e ven been outperforming designer and luxury priced brands in terms of sales growth (Wall Street Journal, 2013). With a strong economy, Canada’s retail market is the right fit for bridge price point brands and retailers, such as All Saints. S aints. This rapid growth of this former niche market in Canada indicates that Canada is a prime location to invest in serious expansion. Here, brands such as All Saints can cater to a growing demand for better quality, selection, and customer service. This growth trend could perhaps be the result of shifting consumer behaviours, rejecting the fast-fashion retailers that have become so pervasive in the fashion industry, in favour of the idea of slow fashion. Recommendation: In order to maximize profit during this
period of increasing consumer interest in bridge price point retailers, All Saints needs to maximize brand exposure among Canadian consumers. By reaching out to and interacting with 1 8
ALL SAINTS
PART I: BUSINESS OPERATIONS Canadian consumers through social media efforts, local events, and collaborations with other Canadian brands, All Saints would ideally place itself at the forefront of its customers’ minds when shopping fo r bridge price point items. Increased Marketing and Advertising Within the UK and US, All Saints marketing strategies are extensive and successfully create a strong and cohesive brand image. Their marketing strategies primarily take the form of social media, with active Twitter, Facebook, Instagram, Pinterest, and YouTube accounts. Their social media content primarily centralizes around the product and their involvement in music and film, with heavy use of short films. However, within Canada, All Saints marketing efforts lack penetration. All Saints target market is not as aware of the brand within Canada as elsewhere. Thus, an opportunity exists to expand their marketing efforts with a specific emphasis on Canada in order to create stronger brand awareness within the Canadian retail market. Recommendation: All Saints’s marketing strategies rarely take the
form of paid advertisements. However, by introducing advertisements in Canadian magazines, television commercials, or special events to create buzz and hype around the brand, All Saints could take advantage of the marketing opportunities that exist in order to raise brand awareness and ultimately increase business within the Canadian market. In order to increase local brand awareness, All Saints will market itself in two ways. First, it will develop strong partnerships with Canadian fashion publications such as Flare, Fashion, and Elle Canada in order to expose Canadian readers to the brand. In conjunction, All Saints will sell its private label clothing in “A” level Hudson’s Bay department stores in order to increase points of contact for existing and potential customers.
ALL SAINTS
1 9
PART I: BUSINESS OPERATIONS THREATS Economy Despite Canada’s currently strong economy, retailers such as All Saints that sell products at a bridge price point are still vulnerable to recessions and the business cycle. During a recession and poor economic times, designer and higher priced fashion items are among the first things to be deemed unnecessary. The economy and business cycle is something that is out of All Saints control, however, if All Saints were to introduce some products at a slightly lower price point it may allow for stable sales during a recession. High Competition With steady growth in the bridge price point market, many retailers and brands are moving in. Therefore, there are many substitute products and high competition for All Saints. Within Yorkdale alone, Club Monaco, John Varvatos, and Wilfred all compete for the same consumer dollar as All Saints and occupy retail space within the same hallway of the shopping centre. As well, other lower priced stores such as Aritzia and Danier sell similar items at a lower price, which offers consumers a cheaper alternatives to many staple items in All Saints’s product assortment. Holt Renfrew is a designer and luxury goods retailer that also sells items at a similar and higher price point, but carries many well-known brands such as Acne, Rag and Bone, and Alexander Wang. Since these brands already pervade the market that All Saints is targeting, All Saints may become second string. It is therefore imperative that All Saints create a strong brand presence within the Canadian market in order to remain competitive and be a first choice retailer and brand. Changing Fashion Trends Fashion trends are constantly changing from season to season, sometimes even faster with microtrends. The All Saints core aesthetic of dark muted colours, headto-toe leather, and androgynous silhouettes is currently on trend; however, in coming seasons it may no longer be fashion-forward. All Saints will either have to reinvent their look, which may mean losing loyal customers, or stay true to their aesthetic, which may mean losing the ability to attract new customers, ultimately resulting in lower sales growth. Foreign Exchange Rates All Saints is a UK based retailer whose business operations are primarily centered across the sea. In trying to permeate the Canadian retail market, All Saints may face some struggles related to exchange rates. Currently, one Canadian dollar is equal to approximately 0.54 British Pounds and 0.65 Euros. Depending on the Canadian and international economy, retail prices could rise for All Saints merchandise as its business dealings are not focused in Canada. Conversely, Canadian-based Canadian-based retailers such Aldo and Joe Fresh do not face such issues. All Saints cannot control foreign exchange rates, however they may greatly impact their success in the Canadian market. 2 0
ALL SAINTS
PART I: BUSINESS OPERATIONS
Integration of Foreign Business Concept All Saints may incur challenges when attempting to integrate their business concept into the Canadian retail sector. It is relatively easy for U.S. retailers to translate their business into a Canadian context. However, with roots in the U.K., All Saints runs the risk of facing cultural barriers that may hinder customer acceptance and adoption of the brand. The fact that no other Canadian business has approached fashion retailing from the same angle as All Saints, with its integration of music and film culture into the brand, could act as an opportunity or a threat based on how customers receive the newcomer. Consumers may be wary of the unfamiliar, or may develop a strong sense of loyalty to the brand for being the first and only of its kind in Canada. In order to ensure the latter, All Saints must focus efforts and resources on interacting with and appealing to its Canadian market.
ALL SAINTS
2 1
PART II: CAREER OPPORTUNITIES COMPANY STRUCTURE STORE LEVEL Being a UK retailer, All Saints manages their stores very differently from many Canadian retailers. An entry-level position at All saints would be that of a part-time Stylist, followed by the position of Senior Stylist, which is a full-time position. After this level, All Saints employs both full-time and part-time Stock Associates who are responsible for replenishing stock both in the stock room as well as on the floor. Next level positions include the Stock Manager, who oversees orders, shipping and receiving, and maximizing profit on the floor, and Junior Floor Manager, who oversees the stylists and handles anything pertaining to customer needs. There are two Floor Managers for each retail store, one for the women’s department and one for men’s. The Floor M anager ensures that sales goals are being met and that they are not exceeding their budget. Floor managers also supervise stylists and the Junior Floor Manager. The Assistant Manager is the next superior to the floor manager. This role includes two positions: p ositions: Commercial Assistant Manager and Operational Assistant Manager. The Commercial Manager is responsible for all visual aspects of the retail front, the product displayed on the floor, tracking drivers and items that aren’t performing well, and ensuring proper size allocations. The Operational Manager is a behind-the-scenes role and is responsible for payroll, hiring and administrative work. The Store Manager oversees everything including sales goals, floor product, employee tasks and customer relations. Above that, the General Manager is responsible for the store ’s business in its its entirety. Currently, within within Canada, All Saints is on a hiring freeze. As a way to stay on budget, one person will be responsible for the roles of two positions. In the near future, All Saints hopes to hire a Commercial Assistant Manager once the hiring freeze is over. CORPORATE The All Saints global corporate head office is located in London, England, and the closest regional head office is based in New York City. Recently, All Saints has made a vast amount of cutbacks in terms of staffing. However, employees that have survived the cutbacks are now faced with taking on a number of roles. One employee may be responsible for the workload of three separate positions. Wil Beedle is the Creative Director of All Saints, and is primarily responsible for designing the aesthetic of the merchandise. His most recent collection for Spring 2014 was inspired by floral motifs with a graphic twist and was featured in the Mercedes Benz New York Fashion Week. Beedle, along with the marketing team, oversee the basement sessions, which are used as a marketing piece. Basement sessions feature various music artists performing popular songs while wearing All Saints clothing. These sessions are shot in the basement of an All Saints store where the videos are then uploaded and put on the website in real time. Two of the basement sessions featured Canadian-based music from both Kings of Leon and City and Colour. The videos are created based on where the newest locations will be 22
ALL SAINTS
PART II: CAREER OPPORTUNITIES opening and thus feature music and talent from that city. All Saints next store opening will take place in Tokyo, Japan. The brand’s new CEO, William Kim, has influenced All Saints involvement with music and digital media, which has led to the development of a fully operational film company, introduced in 2013. Kim is also responsible for the future direction and look of the stores. There are currently no corporate opportunities within All Saints in Canada.
ALL SAINTS
2 3
WORKS CITED The Wall Street Journal. Dow Jones & Company, 6 Feb. 2013. Web. 22 Mar. 2014. . Trading Economics. Trading Economics, n.d. Web. 22 Mar. 2014. . come>. "Price Point Definitions." Definitions." WeConnectFashion. N.p., n.d. Web. 19 Mar. 2014. http://weconnectfashion.com/fido/get http://weconnectfashion.com/fido/getarticle.fcn?& article.fcn?&type=guides&Sear type=guides&SearchString=pri chString=pricc e+point&i>
24
ALL SAINTS
25
25
PART I: BUSINESS OPERATIONS
ALL SAINTS
26
26
PART I: BUSINESS OPERATIONS
ALL SAINTS
27
27
PART I: BUSINESS OPERATIONS
ALL SAINTS
28
28
PART I: BUSINESS OPERATIONS
ALL SAINTS
