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TRANSCRIPT
Final Thesis Project
Kay Dunton
Academy of Art University
Graduate School of Fashion Merchandising
August 10th, 2016
4:00 PM PDT
Table of Contents, Brief Version
• Business Summary 6
• Market Research and Analysis 11
• Target Customer Profiles 41
• Competitor Analysis 53
• Merchandising Plan 77
• Marketing and Promotion 119
• Location Analysis 165
• Branding 168
• Organizational and Operations Plans 180
• Financial Plan 195
• Appendix 222
• Works Cited 227
• Conclusion 240
Table of Contents
Business Summary
Business Inspiration Mission and Vision Thesis Abstract Business Goals
Market Research and Analysis
Country Profile E-commerce Industry Profile Product and Pricing Research Overview of Accessories Market PESTEL
Target Customer Profiles
Competitor Analysis
Key Competitors Secondary Competitors Brand Positioning Competition Profile Competitive Advantages SWOT Michael Porter’s 5 Forces
Merchandising Plan
Vendor Analysis
Stock List
Development Calendar
Marketing and Promotion
Campaigns
Marketing Communications
Marketing Budget
Marketing Calendar
Location Analysis
Branding
6
789
10
11
121620
2538
41
53
54627071737475
77
79114118
119
124136
155156
165
168
Organizational and Operational
Plan
Organizational Chart
Roles and Responsibilities
Employee Policy
Customer Policy
Financial Plan
Financial Summary
Business Milestones
Expansion Plans
Start Up Costs (Chart)
Assortment Plan
Profit and Losses
Sales Quarter Years 1-3
Startup Capital Spending
Cash Flow Years 1-3
Loan Repayment Schedule
Marketing Budget
Financial Assumptions
Appendix
Autobiography
Resume
Time Line
Works Cited
Conclusion
180
185186193195
196
197200
201202204206208210214216218221
223
224
225
226
228
241
Business Summary
6
Business Inspiration • Due to pursuing a degree in Fashion Merchandising with an emphasis in product development, I was required to take two
fashion design courses. The inspiration for my thesis project were on the fashion design majors from my second fashion design class: FSH 600A 01: Fashion Design with Akemi Okamoto. In this class there was a lot of group work, critiquing of peers, and discussing each others designs. I found myself learning a lot more about fashion design by doing group work with other students.
• My particular class had a number of students that were very profound in their ideas for fashion designs. Many of the students in this class had an undergraduate degree in art, which honed a deeper philosophy towards art and they designed with mood and feeling. I was surprised that they sometimes even used ugly inspirations to create amazing and beautiful designs. I in contrast majored in Economics as an undergrad, and never factored feeling or mood into my designs, and I definitely would never think of getting my inspirations from something ugly. To me art was only about being pretty.
• The fashion design students also often had really deep philosophies behind their designs as well. It was truly amazing to seeand learn about their work. The ideas behind their designs had very interesting concepts which often made their designs very impressive. I used to think having a deep attitude behind art was silly. I believed art and design should only look good. However, my classmates caused me to really change my mind, and I found that having a concept increased my appreciation for the work. In addition to that, I found some of the looks that were rendered to be much more amazing than what I was used to seeing from any other outlet that I have been exposed to before. I haven’t come across designs so unique and rendered so wonderfully any other place, online, or in a magazine.
• There are not too many outlets or a magazines, newspapers, etc, that really emphasize the inspiration and philosophy behind fashion designs. There are few many magazines that showcase independent and emerging designers. Fashion magazines mostly show big business and top industry leaders, and there isn't a focus on creativity, but wealth, luxury and commerce.
• I was inspired to create an online store and magazine that would showcase the work of creative fashion designers so the public can gain greater exposure to independent fashion design. 7
Mission And Vision Statements
• Mission Statement
• Autumn Story’s goal is to be an exciting place for you to learn about creative and unique fashion designs and the stories behind them. The Online Store will feature designs from independent and emerging designers. Through the online magazine, customers can read about the design process and inspirations of unique independent fashion designers. Autumn Story will also work to support ethical business practices through sustainable design and fair trade and to report on innovative technology in the fashion industry.
• Vision Statement
• Autumn Story’s long term vision is to popularize creative design, promote creative designers, showcase the work and philosophies of creative designers, promote ethical business practices in the industry and to educate readers on the new technology being created in the fashion and design businesses. Autumn Story seeks to eventually expand from offering jewelry and accessories for women to offering a wide array of designs for both men and women. Other goals involve increasing readership of the Online Magazine and to expand into other types of media.
8
Thesis Abstract• Autumn Story will be located initially in Wilmington, Delaware and will be founded in February of
2018. As Autumn Story grows, more independent and emerging designers will be able to feature their work on the Online E-commerce Store and Magazine. This will help designers and independent businesses have an new and interesting outlet to express their opinions and design philosophies. Customers will gain access to unique and creative concepts and be introduced to amazing behind the scene stories.
• Customers will find an outlet to purchase amazing, unique, one of the kind products made with skill and craftsmanship. Customers can rest assured that they are fair trade and sustainably designed. Autumn story’s values in design will help customers procure unique and amazing products.
• Autumn Story will initially sell jewelry, bags and shoes for women on the online store, with future goals of expanding to sell clothing, and many other design focused products to both men and women.
• The CEO of the company will be Kay Dunton and her key advisor will be Amanda McMillan. Kay Dunton has an undergraduate degree in Economics from the University of Iowa and has work experience in banking, technology and client care. Amanda McMillan has an undergraduate degree in Management from the University of Delaware, as well as post coursework in accounting. She has work experience in banking, finance, and accounting.
• Autumn Story intends to start with a small inventory and budget. Three product types will be offered: jewelry, shoes and bags. Growth intends to be slow in the first few years to not have a large debt burden. Expansion will grow by investing more in inventory and marketing in subsequent years. Procuring amazing products and designs for the online store will prove time consuming because many important criteria must be met in the quality of design. Other risks involve negative or negligible profit. The risk is without a sizable profit, future expansion will prove less inevitable. The correct inventory, debt, and expenses are needed to ensure a reasonable slow expansion, which is aligned with Autumn Story’s objective. 9
Business Goals• To start small and have slow growth in order to avoid a debt burden.
• To have around $100,000 dollars in sales within the first year.
• To have 6% growth in the second year and 9% growth in the third year of business.
• To start out with only one employee, and hire 2 employees by the second or third year of business.
• To offer excellent site security and fraud monitoring.
• To offer excellent customer service.
• To promote and help new and independent designers grow their businesses.
• To be a retail platform for customers to discover creative products that are affordable and unique.
• To offer products that are fairly traded and sustainably designed.
• To increase magazine readership each year by 10,000 readers.
• To increase social media interaction with customers.
Market Research and Analysis
11
Country Profile• United States GDP 17.42 Trillion 2014
• United States Population 318.9 Million 2014
• United States GDP per Capita $54,625
• United States GDP increased 3.91% from 2014 and 3,66% from 2013.
• GDP Composite:
• Agriculture: 1.6%
• Industry: 20.7%
• Services: 77.7%
• Inflation Rate: 1.58% in 2014 and 1.59 % in 2013
• Consumer Price Index: September 2015: 237.95
• Unemployment Rate: September 2015: 5.10% (7.9 Million People)
• Long Term Unemployment Rate: September 2015: 1.34%
• Labor Force Participation Rate: September 2015: 62.40%
• Retired: 39.5 Million Retired Americans
• Americans Paid Hourly: 75.9 Million
• Involuntary Part Time Workers in 2015: 6.6 Million
• Americans Making Minimum Wage in 2015: 3.3 Million
• Students (higher education) as of 2012: 21 Million, 5.7% of the total population.
• Source: CIA World Fact book
12
• Income of Americans:
• 66% of Americans earn less than $41,000. Median wage per person is $26,695. Median household income is $53,390.
• 20.08% of Americans make $100,000 or more, that would be 63 million people. 4.3% make more than $200,000.
• According to Social Security Tax Records in 2011: 50% of Americans make less or equal than the median wage of $26,695.
• 15.1% of the population is below the poverty line.
• Income Growth (Salary per Year) from 1967 to 2011:
• Lowest 10% of Wage Earners: 20% increase in wages from $9,600 in to $12,000.
• Lowest 50% of Wage Earners: 16% increase in wages from $42,000 to $50,000.
• Highest 90% of Wage Earners: 39% increase in wages from $88,600 to $143,000.
• Highest 95% of Wage Earners: 41% increase in wages from $111,900 to $186,000.
• In 1967, $200 dollars had the same buying power as $1,424.82 in 2015.
• The lowest 10% of income does 2% of the consumption and the highest 10% of income does 30% of the consumption.
• Source: the CIA World Fact Book
13
Typical Money and Spending Allocation of AmericansThis graph is from fool.com. Fool.com said they retrieved their data from the Bureau of labor statistics.
Rather than average all Americans together, they broke it up into five income categories.
The graph depicts amount spent by Americans per day on each category.
The darker orange category represents apparel.
14
Spending Allocation of typical Americans Continued.
• Housing, Transportation and food are the greatest expenses for the average American, and make up 65% of all money spent.
• According to a 2010 North Dakota State University study, the average household spends 3.8% of their income on clothing which translates to roughly $2000 a year if the average household makes $50,000.
15
E-commerce Industry Profile
E commerce has grown 15 % in the USA since 2013, however, it only makes 10% of purchases in the USA. The USA has the largest economy for online purchases in the world with around $238 Billion.
16
E-commerce Trends Per kissmetrics.com, Millennials will comprise 50% of the workforce in 2020, and by 2025
they will make up 75% of the workforce. They currently make up 27% of the population as of 2014 and have $600 billion in annual buying power.
The amount of time spent with ecommerce sites on mobile devices has risen to overtaken traditional computer sales. In June 2014, 60% of time spent by consumers with ecommerce sites were on mobile devices such as phones and tablets. This is according to ComScore Inc. as presented on internetretailer.com
In another article by internetretailer.com, Etsy.com reports that 60% of their visitors in the third quarter accessed their site through a mobile device.
According to Shopify.com 33% of all online sales are from mobile devices. This is up 23% from the previous year. Mobile ecommerce sales has grown 175% within the last three years. Shopify also reports that in 2014, e-commerce sales coming from social media sites grew 202%.
Facebook isn’t the only platform social media referrals come from. Pinterest, Youtube, and twitter make up a substantial amount of sales in some industries. See the chart below from shopify.com.
17
Consumer Trends Continued
18
In 2014 Business Insider gave references to two different surveys: “In 2010, comScore estimated that women account for $6 out of every $10 spent online. In 2012, a Greenfield survey found that women account for 58% of online spending in the U.S.” We see spending is done slightly more by women than men online. Later in 2015, Business Insider reported further changes in e-commerce shopping. They said that women are making up 66.5% of mobile device shopping, while men make up 33.5% of purchases done on mobile devices. The purchase on mobile devices are growing 3 times faster than other e-commerce outlets in the U.S.
Per Business Insider, 44% of men 18-34 years said they shop on online auction sites like ebay, while only 31% of women 18-34 years old said that they did this.
According to PFS Web, emarketer.com people from 88% of people 18-29 years old use the internet every day. The report also stated that people aged 50 and over were the least likely to use the internet every day. This group was the most concerned with online privacy concerns than any other group. According to PFS Web, only 35% of people over the age of 65 shops online, but this number will increase to 42% by 2018.
Per above, one reason the older generations do not like to shop online is the concern over privacy. However, baby boomers may be more trusting in online payments than before, especially since large retailers like Target have compromised card data. According to paymentsource.com, a study from McFee Security found that 9 out of 10 boomers reported making an online purchase. Adults over 50 years old spend an average of 7 billion a year, which makes up 49% of online sales. This means that they outspend younger generations by a 2:1 ratio. They outspend other generations by $400 billion dollars a year. This is according to Forrester research. PaymentSource.com reports that boomers are more comfortable using the internet than before, and now represent the internet’s largest constituency.
19
Demographics of E-commerce Users
Product and Pricing (Assumptions)
• Products: Jewelry, Shoes and Bags.
• Pricing: Mid-range. $30-$600.
• Why these products and price assumptions?
• My focus is on creative, independent or emerging designers. The emphasis is on design and creativity, not on price or prestigious name brands. I believe that consumers would be more willing to buy unusual designs from unknown designers in the jewelry, shoes and bags category than from other categories of fashion. It would also be better to focus on a few product types than many product types when a business is small and growing.
20
Product and Price Research
• 30% of consumers according to a September 2015 Mintel report, are willing to buy jewelry or watches online. 14% of respondents said they do not like to buy jewelry online and 13% said they do not like to buy watches online.
• According to a June 2015 report by Mintel, 28% of online shoppers choose their online retailer based on who has the lowest price. Consumers see shopping online as a chance to get a deep discount or a bargain. The compound annual growth rate for online retailers have been 16% from 2010-2014, however, Mintel reports that online retailer have not seen a profit, rather they have seen losses. Mintel speculates this is due to very competitive prices online. They say that a way to compete in the future is by offering unique goods and products that cannot be found elsewhere.
21
Product and Price Research continued
• According to Mintel June 2015 report 62% of online shoppers have bought clothing and accessories online, more than any other category. 54% of online shoppers have bought electronics and 37% have bought toys, games and school supplies. 31% purchased personal care items and 30% bought home and décor online.
22
Product and Price Research continued
• Factors that influence spending online is an offer to have free shipping if you go over a certain threshold. 48% of shoppers will increase how much they spend to be able to get free shipping. Also, the amount of children they have greatly influences the amount spent. When asked how much did they spend on their last online purchase, people without children averaged $78, one child was $123, two children was $148, and three or more children was $177.
23
Research Analysis (Price and Products) • I believe that this research shows that millennials from 25-34 are more likely than other
demographics to buy jewelry and self expression and style is more important to this demographic than other groups.
• People often buy online for convenience. Other than convenience, a reason would be to either get a very competitive price, or to find a unique item. To avoid competing aggressively on price, offering unique products is another good way to differentiate the commerce site.
• 60% of online shoppers are willing to make online purchases in apparel and accessories.
• These factors support my goal of selling to older millennials and to offer unique items.
24
Overview of Jewelry Market
• Total US retail sales and fan chart forecast of watches and jewelry, at current prices, 2010-20
25Source: Based on US Bureau of Economic Analysis/Mintel
Distribution Channels for Jewelry
26
Retailers shopped for watches and/or jewelry (in-store or online), June 2015
58
58
28
29
26
26
23
22
16
15
14
13
12
8
8
5
3
Any Jewelry store
Any Jewelry department
Any Online only
Department store
Local or independent jewelry store
National chain jewelry store
Mass merchandiser
High-end jewelry store
Warehouse club
Accessories store
Specialty store
Other online-only retailer
Online discount or auction site
Online jewelry retailer
TV shopping network
Other
In a home
%
Source: Lightspeed
GMI/Mintel | Base:
1,208 internet users
aged 18+ bought
jewelry/watch for self
or someone else in last
12 months
27
Attitudes toward buying jewelry and watches online, June 2015
Base: 1,128 internet users aged 18+ who bought jewelry for self or someone else in last 12 months and 481 internet users aged 18+ who bought a watch for self or someone else in last 12 months
Source: Lightspeed GMI/Mintel
28
Attitudes toward buying jewelry and watches online, June 2015
Base: 1,128 internet users aged 18+ who bought jewelry for self or someone else in last 12 months and 481 internet users aged 18+ who bought a watch for self or someone else in last 12 months
Source: Lightspeed GMI/Mintel
Consumer Trends in Jewelry• According to Mintel’s September 2015 Watches and Jewelry report, 32% of older
Millennials purchase watches and or jewelry to make a fashion statement and 23% say they make purchases to keep up with current trends. In comparison, 25% of all respondents said they wear watches and or jewelry to make a fashion statement and only 16% of all respondents do so to keep up with current trends. Mintel says that the idea of selling watches and jewelry as fashion statements are key to selling to Millennials.
• Total US retail sales of watches and jewelry are expected to reach $79.3 billion in 2015, up 1.6% over 2014. Slow and steady growth should continue through 2020 as the market expands to reach a combined total of $88.6 billion, representing a 12% gain.
• Mintel also says this is really good news considering that 40% of consumers have not made a purchase in the last 12 months.
29
Consumer Trends in Jewelry Continued • Three out of four people who make purchases in jewelry and watches are from
the age of 25-34 within the last year. Other market segments are interested in jewelry, however, the bulk of the purchase are done by this demographic. 62% of online shoppers have bought clothing and accessories online, more than any other category.
30
Overview of Bag Market
• Trends are away from big totes, towards smaller bags. –Dorothy Laker, Topeka Capital Markets.
• Growth of handbags profits has slowed to single digits due to young consumers buying lower priced large wallets and small cross-body bags.-John Idol, Kors Chief Executive Officer.
• -Source: Business of Fashion
31
Overview of Footwear Market
• Total retail sales for men’s and women’s footwear are estimated at $42.9 billion in 2014. Sales have increased 15.7% at current prices from 2009-2014, representing an increase of 4.8% after adjusting for inflation. Annual growth is expected through 2019, with sales forecasted to reach $47.7 billion in 2019, up 11% from 2014.
32
BASED ON US CENSUS BUREAU, ECONOMIC
CENSUS; BUREAU OF LABOR STATISTICS, CONSUMER EXPENDITURE SURVEY; BUREAU
OF ECONOMIC ANALYSIS/MINTEL
Total US Sales and Fan chart forecast of adult footwear, at current prices, 2009-
19
• The Millennial generation (aged 18—37 in 2014) embraces younger footwear buyers who purchase far more footwear than older consumers. The Millennial population is projected to grow 2.7% from 2014-19 and to number 80.4 million by 2019, representing 24.3% of the total US population. They will be key to market growth through 2019.
33• 189 Hispanic internet users aged 18 +, 834 non-Hispanic internet users aged 18+
• Source: GMI/Mintel
Footwear purchase by race/Hispanic origin, June 2014
34
Footwear Distribution Channels: Retailers shopped for footwear, June
2014
1,742 internet users aged 18+ who have
purchased footwear in the last 12 months
Source: GMI/Mintel
Consumer Reasons for purchasing footwear
• Comfort is key, with 78% citing it among of their top three priorities when buying new shoes. This is followed by durability (42%) and style/fashion (36%).
35
• 1,742 internet users aged 18 + who have purchased footwear in last 12 months
• Source: GMI/Mintel
Important attributes when shopping for footwear, June 2014
36
Reasons for purchasing footwear by gender, June 2014
1,742 internet users aged 18+ who have purchased footwear in the past 12 months
Source: GMI/Mintel
Replacement is the most widely given reason for purchasing new footwear. Online retailers
and those with loyalty programs are well positioned to promote replacements with email
reminders and discounts. Secondary factors also motivate many purchases, giving retailers
multiple inroads to encourage more discretionary purchases. Female buyers, and those
aged 18-34 (not tabulated) are more likely to be motivated by secondary reasons such as a
sales, wardrobe update, impulse or a special occasion.
Cities with Highest Accessory Demands
Based on Percentage Increase of Jewelry Sales on Valentines’ Day.
• 1. Virginia Beach, Virginia
• 2. Norfolk, Virginia
• 3. Chesapeake, Virginia
• 4. Anaheim, California
• 5. Santa Ana, California
• 6. Reno, Nevada
• 7. Hialeah, Florida
• 8. Lexington, Kentucky
• 9. Winston Salem, North Carolina
• 10. Colorado Springs, Colorado
• Source: Bundle.com
37
Based on Cities with Booming Hiring for Retail Jobs and
a high growth Rates.
1. Austin, Texas
2. Los Angeles, CA
3. Atlanta, Georgia
4. Boulder, Colorado
5. Baltimore, Maryland
6. Columbus, Ohio
7. Portland, Oregon
8. Miami-Fort Lauderdale, Florida
-Source: jobs.net
Macro Environment: PESTEL Analysis
Political Tax Rates for an LLC
(same as income tax)
Trade Deals
(Transatlantic Trade
and Investment
Partnership) and
Trans-Pacific
Partnership (TPP)
Agreement
Duties and Tariffs
US Postal Service
(Special Business rates)
Laws related to
commerce/payment
processing. (PCI DSS
standard) (PCI
Compliant)
FTC (Federal Trade
Commission laws)
(Truth in marketing,
shipping within 30 days,
collection of sales tax,
and providing privacy
policies.
Find most favorable
place and business
structure for taxation.
Have the best importing
and exporting trade
deals as per laws within
the US.
Get the best business
deals for shipping.
Research best payment
processor and be aware
of security and laws for
consumer protection.
More imports from new
countries that now
don’t have restrictive
tariffs on American
goods.
Not being aware of the
laws and changes in
regulation. Taking
advantage of
unfavorable deals in
relation to these laws.
Choosing a high tax
business structure.
Trading with a country
that has high tariffs.
Not keeping commerce
and payment processing
laws due to lack of
knowledge.
Cheaper products from
countries being let in
because duty was lifted.
Having consumer data
being compromised.
Keeping track of laws
and regulations. There
are 12 points to
consider when being
PCI DSS compliant.
38
PESTEL Continued Economic Income Levels
inflation rates of certain
goods.
Interest Rates
Access to credit
Dollar Exchange Rate
Awareness of
income levels of
certain niche
groups and
pricing product
to match
accordingly.
Adjusting prices
for goods that
would crowd out
other expenses.
Following the
strength of the
dollar will help
me know when to
try to do
importing or
exporting.
Following credit
could help me to
know if loans are
favorable or
unfavorable at
this time.
Stagnant rate of pay increases.
Cost of medical, housing, and
education rising dramatically
and can crowd out other
spending.
Interest rates rising, bad for
credit and loans.
Low access to credit means
fewer purchases.
Weak dollar means more
exports, strong dollar means
more imports.
39
PESTEL Continued
Technological Technology of competitors
New Technologies I could use
Technologies that could help
the customer
Technologies to provide
security to the customer
Technologies coming soon
Can find best marketing,
payment processing and
ecommerce tools out there
by researching competitors
and businesses involved in
that.
Can provide safe, reliable e-
commerce platform through
research and
implementation.
Can be aware of new
technology and be ready to
implement it sooner than the
competitors.
Competitors using
technology more advanced
and safer than mine.
Not utilizing enough visual
technology for marketing to
make products stand out.
Not having enough security
for the customers.
Environmental (Natural forces) Laws regarding the environment.
Recycling
Weather
Climate Change
Renewable energy
Able to stand out as an
environmentally friendly
company.
Able to follow laws and recycle
and provide packaging and
materials that are friendly to
the environment.
Provide goods and services that
are environmentally friendly.
Opportunities to find
alternatives to wasteful
practices.
Costs in relations to extra steps
to be environmentally friendly.
Time to research companies that
I do business with to make sure
they are environmentally
friendly.
Finding alternatives to standard
practices that won’t negatively
impact the environment.
Natural disasters.
Laws that would cost money
relating to environmental
standards.
Costs of materials in supply
chain will increase based on
weather impacts.
Legal and regulatory Anti-trust laws
Discrimination laws
Copyright, patent and
intellectual property right laws
Consumer protection and
ecommerce
Labor and employment laws
Data and Protection Laws
Being aware of all laws relating
to business and keeping those
laws helps the environment,
consumer and the employee.
Breaking a law that wasn’t well
known, or appearing to break a
law when you didn’t break it.
40
Target Customer Profiles
41
Target Customer Research and Analysis: Target market demographics
Market Group Primary Secondary Tertiary
Age 24-34 18-23 35-49
Gender Female Female Female
Race/Ethnicity any any any
Education College graduate High school, some college, or college graduate
Graduate School
Income $35k-$70k $15k-$45k $45k-$80k
Profession Creative Professional In school, part time, intern. Business, Government
Family Married, and or with children
single Married, and or with children
Geography Urban Urban Suburban
42
Target Customer Research and Analysis Continued: Psychographics
Interests Fashion, art, design Travel, culture, food Business ethics, environment, politics
Hobbies Shopping, creative arts,
attending concerts, movies. Music, painting, writing.
Travelling, eating out, spending
time with friends, learning
about new cultures, volunteering.
Sports, yoga, fitness, gardening, reading.
Beliefs Self-expression is important,
creativity is an important part of culture.
Learning about international relations, history is important.
Social justice, environmental conservation.
Shopping Habits Shops online, looks for unique categories.
Shops online, looks for unique categories.
Shops online, looks for fair trade products.
Technology Habits Tablet, mobile, computer, social media
Tablet, mobile, computer, social media
Tablet, mobile, computer, social media
Fashion Category Interested in new fashion as a
way of self-expression. Keeps
up with trends. Fashion leader and or adaptor.
Fashion innovator, interested in unique designers and trends.
Fashion adaptor. Values
products that well made of good quality.
Values in Fashion Interested in unique and
innovative designs, and good quality.
Interested in unique findings
from around the world.
Interested in other cultures. Fashion Innovator.
Interested in fair trade and fair
wages. Interested in ethical
business and environmental causes.
Motivations to buy Self-expression and to treat
themselves and to buy gifts for
others. To keep up with trends.
Self-expression. Interested in
unique world designers. Convenience and time savings.
Find and support fair trade and
environmentally minded businesses.
43
Primary Target Market Profile Urban Creative Professional
• Name: Andrea
• Age: 27
• Occupation: Illustrator and Teacher
• Income: $45,000 a year.
• Location: Los Angeles, CA
• Population size: 2.1 Million art professionals in the US. 30 Million 25-34 year old females.
• Andrea loves art and design and she also loves working with children. She is an exceptional painter and loves to read fiction. She loves to cook food from other cultures and to watch foreign TV shows. She spends a lot of time laughing with her friends and likes to go out to restaurants, art exhibits, local events and parties. She loves shopping online for interesting finds that fit her unique aesthetic.
44
Inspiration Board: Primary Customer
45
Primary Customer Research• The primary target market is focused on unique and innovative design. Older
Millennials are on average more interested in making fashion statements or keeping up with current trends. According to Mintel’s September 2015 Watches and Jewelry report, 32% of older Millennials purchase watches and or jewelry to make a fashion statement and 23% say they make purchases to keep up with current trends. In comparison, 25% of all respondents said they wear watches and or jewelry to make a fashion statement and only 16% of all respondents do so to keep up with current trends. Mintel says that the idea of selling watches and jewelry being as fashion statements are key to selling to Millennials.
• According to Warc research done on Millennials in their November 2015 report titled Millennials: Impact on Global Consumer markets, Millennials are more likely to spend money on owning clothing and beauty, and appearances matter to this demographic.
• The need for self-expression also extends to wanting to be listened to and receive feedback. The Warc article continues to say, “Millennials are also known for their need to be listened to. They expect brands to react to their ideas and criticism, and allow them a role in shaping new products. Brands that use a degree of interactivity, from a simple dialogue via social media to more innovative initiatives, such as brand or product co-creation, typically play well with this demographic.”
46
Secondary Target Market Profile: Cultural Traveler
• Name: Whitney
• Age: 23
• Occupation: Operations Officer at Non-profit
• Income: $37,000 a year.
• Location: San Francisco
• Population Size: 16 Million females 18-24 years old.
• Whitney is interested in helping people and has traveled to India for her non-profit job focused on providing affordable education in India. She is also involved with charitable work to support victims of human trafficking. She has traveled to Nepal for charity work as well. She has also been to Brazil, China and many other cities and countries to learn about and explore new cultures. She is also religious and enjoys hanging out with friends. She loves to shop at quirky local shops and discount stores for great finds.
47
Inspiration Board: Secondary Customer
48
Secondary Customer Research
• In a November 2015 study by Warc titled The global struggle for work life balance and its impact on consumer markets, consumers have less free time on their hands, but more money. Employees are working more hours than ever before around the globe. They are using their money to purchase products that help them save time and use services that are convenient. According to the study, “Online shopping, and particularly m-commerce, is also meeting consumers’ demands for convenience and flexibility. Omnichannel offerings allow shoppers to seamlessly switch from mobile to in-store to computer to tablet as they move through the purchase decision-making process.”
• The November 2015 study by Warc also delved into the travel habits of busy working people who have less free time. The article states, “The quest for work-life balance has ensured that global demand for tourism remains strong. However, consumers are taking shorter, more frequent holidays and constant access to Wi-Fi is a must for any trip.” This is an important observation for the secondary target market who is interested in other cultures, and travel. The focus on time saving and convenience for online customers is also another observation that is helpful to understanding modern customers.
• According to an article in the Atlantic, How Millennials are changing travel, by Amanda Machado, millennials are the “fastest-growing age segment in terms of the money spent on travel, according to American Express Business Insights.” The article also states that the United Nations find that 20% of all international tourists are Millennials and they produce $180 billion dollars in tourism, and increase of 30% since 2007.
• According to Warc research done on Millennials in their November 2015 report titled Millennials: Impact on Global Consumer markets, he said “Travel is an important area for millennials, but they no longer look for luxury or reliable comfort – instead they are more likely to seek out what they perceive as authentic experiences and real connections with different people and different cultures. This has led to the rise of peer-to-peer lodging platforms such as Airbnb and HomeAway, which additionally appeal to this demographic through their use of interactive software.”
49
Tertiary Target Market Profile: Aware Consumer • Name: Nina
• Age: 35
• Occupation: Director of Real Food Challenge
• Income: $65,000 a year.
• Location: Boston, Massachusetts
• Population size: 30 Million females 35-49 years old.
Nina is really interested in biology, science and the environment. She studied conservation biology and sustainable development. She currently works for a non-profit advocating for real food in our communities. She cares about social justice and humane and sound business practices. She is very active in the community and is aware of the social causes that are important to her. She loves independent music and plays the violin. She also really likes to read classic books.
50
Inspiration Board: Tertiary Customer
51
Tertiary Customer Research
• The following study by Warc shows how willing consumers are to pay for eco-friendly products when the economy and costs are added to the formula. This shows that a financially stable customer will be more likely to pay extra for ethical, and environmentally friendly designs.
• According to an international study done by Warc in June 2015 called Eco Warriors Global Green behaviors and Market Impact, 60% of consumers claim that they try to have a positive impact on their environment through their everyday actions. Warc claims “Green issues are no longer the territory of the outlier, but instead are mainstream.”
• The article goes into further depth with another poll. They asked, “Which of these factors are important to you in purchasing decisions?” The most important factor was quality coming in at 91%. Price was the second most important quality with 86% of respondents choosing this. Green/environmentally friendly products came in at 53% of respondents finding this to be important. Warc concludes that since quality and price ranked consistently higher in their surveys, environmental concerns are outranked. The CEO of Accompany, a fair trade ethical retailer, Jason Keehn, stated “I think the consumer ultimately wants more ethical products, but they’re not willing to sacrifice what they’re used to and what they like. The consumer will grab the ethical item as long as it’s not a trade off.” Warc said that when there is an economic slowdown, there is a shift in consumers to care more about value and price and less about green goods and products. New regulations in Paris in 2015 will force more businesses to be eco-friendly.
52
Competitor Analysis
53
Competition Research and Analysis: Key Competitors:
• Wolf and Badger
• Not Just a Label
• Runway 2 Street
54
Wolf and Badger
• Self Description: The Wolf & Badger ethos is to promote, support and retail only the most exciting independent luxury brands from the UK and beyond. Wolf & Badger now works with over 400 of the very best designers from around the world, retailing a carefully curated selection of fashion, accessories, jewelry and homeware.
• Locations: 2 Locations in London, UK, and online.
• Marketing: They do marketing through social media and an online magazine. They also have features in the New York Times, Vogue and Vanity Fair.
55
Wolf and Badger Continued
56
Not Just a Label
• Self Description: NOT JUST A LABEL (NJAL) is the world’s leading designer platform for showcasing and nurturing today’s pioneers in contemporary fashion. Founded in 2008 to infuse new life into the fashion system, NJAL has provided a critical platform for over 18,000 designers to date and has become an indispensable tool for the industry. The NJAL platform helps designers to gain exposure in the fashion industry at no cost, and finance their progression independently.
• Locations: Online global shop, online community and virtual showroom based in London, UK.
• Marketing: In addition to social media, they have many mentions in newspapers and magazines such as The Cut and WWD.
• Price Ranges: Medium to High
57
Not Just a Label
58
Runway 2 Street
• Self Description: Shop the world We scour the globe to bring you the most desirable, under-the-radar, and hard to find, luxe brands from every corner of the world. 100 countries worldwide, under one roof with one easy checkout, delivered to your doorstep with express 3-5 business day shipping. We making global shopping as easy as buying local.
• Locations: They are an e-commerce site. No locations.
• Marketing: They do extensive marketing on social media as well as many mentions in magazines such as ELLE, Zink, InStyle, and other publications.
59
Runway 2 Street
60
Strengths and Weaknesses of Primary Competitors
• Wolf and Badger
• Pros: E-commerce and Brick and Morter, Good at identifying and supporting smaller brands and designers. Sells interesting and eclectic inventory. Has a magazine to promote designers and products. Offers free shipping with subscription. Many categories and products.
• Cons: Slow shipping.
• Runway to Street
• Pros: Website is sleek and not overwhelming. Products are focused on luxury brands that are under the radar. Many unique designs from around the world. Magazine to promote themselves.
• Cons: Sometimes expensive. Seems more commercial and normal rather than unique at times.
• Not Just a Label
• Pros: A lot of support for independent designers, more creative products being featured. A lot of news and information on independent and emerging designers.
• Cons: Website looks more information driven than profit driven on the homepage. Products sometimes can seem too interesting to buy and wear in real life.
61
Secondary Competitors
• Of a Kind
• Aha-life
• Adorn Milk
62
Of a Kind
• Description: Of a kind is an online e-commerce store that seeks to support new designers. They love how new designers show their personalities through their designs. They also are interested in sharing the stories behind their designs. On their website you can find many designers’ and their stories. You can also shop for apparel and accessories as well as stationary and home goods.
• Marketing: Social Media, Newsletter, online display ads.
• Location: Online
63
Of a Kind
64
Aha life
• Description: Aha life believes that it can be very difficult for emerging designers and artisans to compete with large, global companies. They believe that creativity is at risk, and we are losing artisan’ skills. Aha life is an online platform for independent designers to share their creativity and interact with a global community. Ahalife.com sells apparel, accessories, jewelry, home, beauty, tech accessories and home goods for both men and women.
• Marketing: Social Media, online display ads.
• Location: Online
65
Aha Life
66
Adorn Milk
• Description: Adorn milk was founded by Jaime Derringer the same founder of designmilk.com, which is a website focused on architecture, interior design and art. Adorn-Milk.com sells jewelry that is inspired by architectural design, that is high quality and handmade. They feature designs of independent artists and designers from around the world. Their vision is to bring modern jewelry to the forefront of the design world.
• Marketing: Social Media, Newsletter, sister website designmilk.com
• Location: Online
67
Adorn Milk
68
Strengths and Weaknesses of Secondary Competitors. • Of a Kind
• Pros: Story and designer focused. Sells a wide range of product types.
• Cons: Small inventory, bland product assortment, online only, minimal web presence, sparse advertising.
• Aha Life
• Pros: Extensive list of designers and countries that they partner with. Many different types of merchandise sold on the site.
• Cons: Website boring and not good at marketing products, poor site photography. Not easy to view prices on website. Website not setting up interface to connect with social media.
• Adorn Milk
• Pros: Products priced very moderately. Very well designed products.
• Cons: Only one product type. Small inventory.
Brand Positioning
Competition Profile
Name of
Company/BrandAutumn Story
Direct Competitors Indirect Competitors
Wolf & Badger Not Just a Label Runway2Street Of a Kind Aha-Life Adorn Milk
Brand-name
recognition
New, emerging,
independent, not
well known brands.
New, emerging,
independent, not well
known brands.
New, emerging,
independent, not well
known brands.
New, emerging,
independent, not
well known
brands.
New, emerging,
independent,
not well known
brands.
New, emerging,
independent, not
well known
brands.
New, emerging,
independent, not
well known
brands.
Brand Personality
(Uniqueness)
unique designs from
around the world
from independent
and emerging
designers
Pop culture and quirky.
Discover new designers
Avant
Guard/Contemporary,
High Fashion.
Supporting and
discovering pioneers
in contemporary
fashion.
Emerging Luxe,
Unique designs
from 100
countries
Unique new
designs with a
personalized
touch and story.
Yuppie modern
vibe.
Destination to find 4000 designers from
45 countries, handcrafted and
artisan.
Emerging
designers and
independent
designers
making
archtictural
pieces
Target Customer
Profile
Female, 18-35, big
cities, interested in
travel and design
men, women, kids,
Target Focus, 21-35
years old. Quirky,
casual, and personality.
men, women, 25-45
years old. Daring and
edgy customer.
Women, 35-55
years old. High
end, elegant
customer.
Men, women, 25-45 years old. Middle
class, yuppie, older trendy.
Men, women, kids,
pets, focuses on
ages 25-55.
Contemporary
home and modern
family.
People who like
architecture,
ages 18-30.
71
Competition Profile Continued
Product/service Features Jewelry, shoes, and bags. clothing, shoes,
accessories, homeware
clothing, shoes,
accessories,
clothing, shoes,
accessories, home
clothing, shoes,
jewelry, shoes, and
accessories
Clothing,
accessories, jewelry,
shoes, home, tech
accessories and art.
jewelry
Quality of Products or
Servicessturdy and good, medium medium to high very high medium very high
varies, low midrange
mostly
well made, but not
precious materials
Price Point mid. $40-$2000. Mode price $150 $20-$2200. Mode price $220. $60-$8000. Mode price
$500.
$5-$400. Mode price
$50.
$20-$1500. Mode price $60.
$50-$300.
Compatibility of Products
/ Services with Other
Popular Platforms
likely yes yes yes yes yes yes
Distribution Channals
Used
trade shows, show rooms,
and direct contact,
wholesale
designer direct designer directresearch, direct,
wholesale
research, direct,
wholesaleDirect wholesale
Social media and Media.
YouTube, Facebook, Instagram, Twitter, Pinterest, Polyvore,
Google +, Tumblr.
Facebook, Instagram,
Pinterest, Twitter, Online
Magazine
Facebook, Instagram,
Pinterest, Google +,
twitter, Newsletter.
Facebook, Instagram,
Twitter, Google +,
Pinterest, Online
Magazine.
Facebook, Twitter,
Instagram, Pinterest,
Newsletter.
Instagram,
Facebook, Pinterest,
Twitter, Polyvore,
Vimeo.
Facebook, Twitter,
Pinterest, Instagram.
Newsletter and sister
website,
designmilk.com
Marketing Strategy
magazine and social
media, website affiliates,
print magazines.
magazine promotions,
social media
newsletters and blogs
and collaborations
collaborations, social
media
many mentions in
magazines, social
media
google, blog, social
mediasocial media, blog
Quality of Customer
Service and Service Level
(Use specific examples)
Email and phone. phone and email online formEmail, phone, website
form. Email.
Phone, Email, online
chat.Email, Postage.
72
Competitive Advantages
73
• There will be a focus on telling the designers’ story and sharing their unique
point of view.
• Will encourage a two way interactive between brands and
customers to create a community atmosphere. This will allow customer
feedback and input into the products carried.
• Offering unique and interesting products.
• Emphasis on fair trade and sustainable design.
• M-commerce, and customer interface technology will be used on both
computers and mobile devices to attract customers to a convenient
platform.
• Creates interest as a site by offering hard to find international and domestic
designer products.
• Selling items that are unique but still wearable.
SWOT• Strengths
•
• Offering competitive prices and coupons and special promotions to be
competitive.
• Having a loyalty program.
• Having a visual and interactive site to appeal to emotions and needs of
customers.
• Online magazine content can help advertise and spread content news
and support different designs.
• Having two way customer interaction to gain insight into customer’s
preferences through, reviews, ability to post pictures, and videos.
• Offer free shipping (shipping included in price), free returns, and no
need to login or sign up to make purchase to offer ease of use for
customers and gain customer retention and conversion rates.
Weaknesses
• Small startup costs means not a lot of initial
inventory, offering fewer options to customers.
• Inventory has to be kept low if inventory is meant to
be unique and special niche. Means expansion cannot
be quick or broad for that reason.
• Hard to find the right kind of unique brands and
vendors to work with and consistently.
• Reaching customers and advertising may be hard for
a smaller website.
• Not able to procure shipping deals as good as large
businesses.
• Multitasking many different aspects of the business.
Opportunities
• Implementation of site design to maximize conversion
rates.
• Considering customer emotions and behavior in site
design.
• Continuous research on customer and consumer
changes to keep up with new trends
• Marketing through customer referrals and social
media to gain exposure.
• Expanding into mobile commerce as well
• Finding a niche that can’t be easily found in popular
brick and mortar stores.
Threats
• Costs of returns
• Low conversion rates of ecommerce stores
• Competition with brick and mortar stores and large e commerce
sites.
• Competitive prices
• Negative customer reviews
• Shipping and logistic issues—costs of shipping heightened by
having vendors sourced from multiple divergent locations
• Working with some brands that don’t have as much history or
brand recognition. They will be less reliable at times.
• Internet privacy and security
• Inventory not moving and selling quickly enough. Low turnover.
74
Michael Porter’s 5 Forces Analysis • Supplier Power: Suppliers can drive up costs, but there are many independent and emerging
designers. Can easily find new vendors to purchase with. It is difficult to find creative, innovative and unique products. There is a scarcity of market, and being a good detective to find unique designs and designers can be time consuming. There are an abundance of designers, so finding unique designers that sell practical goods at a mid price range may prove time consuming, but manageable.
• Buyer Power: E commerce buyers can drive down the price more so online than in brick and mortar stores. A huge draw to customers to purchase things from the internet is price. Consumers believe that they can find a cheaper price online. There are more price sensitive searchers online than in brick and mortar stores. Offsetting this by offering unique and hard to find items may help in this.
• Competitive Rivalry: There are many online stores that have the concept of either supporting innovative independent designers, emerging designers, fair trade and sustainable products. There are many competitors in this way, as well as Amazon, Etsy and ebay are dominating the online market in general. There is a lack of practicality with good prices and good design on the internet however, so I would hope to fill that void.
• Threat of Substitution: Legitimate threat of substitution if I sell common products that are sold at many stores. However, I am seeking to work with innovative and independent designers that sell unique and hard to find items.
• Threat of New Entry: Selling things on the internet is now easier with more streamlined payment processors, inventory software, business loans, accounting software and web hosting. Advertising on the web has even become easier with businesses willing to actually do that for you for free. This being said, competitors can easily come and enter the market and take away from your market share and drive down prices. However, my inventory will be always based in finding and exploring the new and creative, so that will help me to adjust to the competition.
75
Differentiation
• Autumn Story’s main way of adding value to the customer is to find unique designers from around the world and to share their unique perspective with the customer. Autumn Story is located in America, so many designers can be from local areas as well as creative and unique items from around the world.
76
Merchandising Plan
77
Products, Pricing
• Jewelry ($25-650)
Necklaces, rings, bracelets, and earrings.
• Shoes ($72-$500)
Flats, heels, sandals, and boots.
• Bags ($60-$675)
• Handbag, shoulder bag, clutch.
78
Vendor Analysis: Primary VendorsVendor Design Point of View Strengths Weaknesses
Abcense Fusion of Industrial &
Traditional
Good quality Expensive
Jacob Birge Vision Ultra Modern May be too different Unique and different
Molly M Designs Architectural Good priced Not using high end
materials.
Matter Matters Geometry and materials Simple design Expensive
Danielle Welmond Ancient, feminine, &
modern
Good craftsmanship Not modern enough
Two Fold Concept Craftsmanship Nice and cute Foreign language, old
inventory
Kili Designs Handmade, leather Good quality Not enough diversity of
product.
Paramithi Handmade, authentic Looks well made, cheap Brass used a lot
Bali Elf Good quality,
handmade
Unique artisans design Perhaps slow
production
79
Brands for each categoryVendor Rin
g
Bracelet
&
earrings
Necklace Flats Heel
s
Sandal
s
Boots Cross
Body
Bag
Totes
Abcense x x
Jacob Birge x x
Molly M
Designsx x x
Matter
MATTERSx x
Daniele
Welmondx x x x x
Two Fold Concept x x
Kili Design x x
Paramithi x x x
Bali Elf x x x
Local Designer x x x x
Local Designer x xx x
80
Sourcing Plan
Vendor Name Abcense
Jacob Birge
Vision
Molly M
Designs
Matter
Matters Danielle Welmond Two Fold Concept Kili Designs Paramithi Bali Elf
Vendor Contact
Info
m
sales@jacobb
irge.eu
wholesale@m
ollymdesigns
.com
flora@matt
erreallyma
tters.com
danielle@danielle
welmond.com webform/njal webform/etsy webform/etsy webform/etsy
Products/Biz
Model Shoes Shoes
Laser Cut
Jewelry Bags Jewelry Bags Bags Jewelry Shoes
Minimum
Order Required $1,500 $800 $300 $600 $1,000 $800 $300 $300 $500
Wholesale/Fact
ory Cost $200 $100 Average $25 $150 $200 $150 $200 $20 $50
Lead Time 2 weeks 3 weeks 2-4 WEEKS 4 weeks 2 weeks 3 weeks 1 month 3-5 weeks 2-6 weeks
Delivery Dates
March and
August
March and
August
Feb and
August
Feb and
August
March and
September March and August Feb and August March and Sept March and Sept.
Brief Vendor
Analysis Modern shoes
Avante gard
shoes
Architectural
necklace
Modern
and bright Artisan jewelry
Creative jewelry and
bags--folds
Bags and
accessories
Bronze and
handmade
Artisinal/crafty
shoes
Alternate
Vendor
www.luzortizne
wyork.com
Alternate
Vendor Contact form on website
Trade Shows
Accessories The
show Jan 4th
JA New York
Trade Show July 25th 81
Vendors And their Contact Information and Description
Address Phone # Email Website
Abcense Taipei City, China [email protected] abcense.com
Jacob Birge Vision London, UK [email protected] http://pl.jacobbirge.eu/
Molly M Designs 131 Hancock St. San Francisco, CA 94114 [email protected] mollymdesigns.com
Matter Matters Unit S, 9A, D2 Place, 9 Cheung Yee Street, Lai chi Kok, KLN, Hong Kong 852 6698 6661 [email protected] http://www.matterreallymatters.com/
Danielle Welmond 1209 Manhattan Ave #293, Manhattan Beach, CA 90266 [email protected] http://www.daniellewelmond.com/
Two Fold Concept Budapest, Hungary Form on Website only http://twofoldconcept.bigcartel.com/
Kili Designs Hong, Kong Form on Website only etsy shop
Venders and Suppliers
Venders and Suppliers
82
83
• Located in Taiwan, Abcense is a
footwear company that was founded by Duo Jhuosan and Yoyo. They
attended Rmit University in Melbourne,
Australia and graduated in 2006.
• They are interested in the fusion of
design and footwear using industrial
components and traditional
craftsmanship.
• They are trying to cater to an exclusive customer that values unique products.
https://www.facebook.com/abcenseUno
rdinaryShoes
http://www.abcense.com/public/index.d
o
Abcense: Products and Price
Prices From left to right, and top to bottom: $128, $108, $230.
• Jacob Birge Vision
• Created by Jakub Bartnik. He graduated from EC-A Edinburgh College of Art in 2012.
• The brand is interested in using high tech fabrics and convenient modern design.
• The brand is based in the UK.
• https://www.facebook.com/jacobbirgevision/
• http://jacobbirge.eu/
85
Jacob Birge Vision: Products and Price
Prices From Left to Right: $85, $128, $128, $155.
• Molly McGrath is a jewelry and craft designer based in San Francisco.
• She has majored in architecture and she uses her background and knowledge of architecture to create jewelry and other home goods.
• Many of her creations are made by a laser cutter.
• http://www.mollymdesigns.com/
87
Molly M Designs: Products and Prices
Prices from left to right, and top to bottom: $20, $20, $22, $22, $25,
$25, $28
Molly M Designs: Products and Prices
Prices from left to right, top to bottom: $27, $27, $27. $27, $31, $35, $36, $45, $50, $50.
Matter Matters
• Originally founded in London and relocated to Hong Kong.
• The founding designer Flora Leung graduated from the London College of Fashion in 2012.
• Flora Leung has worked as a graphic designer, art director and buyer. For her designs, Flora is inspired by many facets of art history, contemporary design and modern classics.
• http://www.matterreallymatters.com/
• https://www.facebook.com/matterreallymatters/
90
Matter Matters: Products and Prices
Prices from left to right: $150, $160. $150.
• Danielle Welmond is from Northern California.
• She studied lace making and metalworking; both skills she has applied to jewelry making.
• In Los Angeles she has had apprenticeships in jewelry making from experts.
• She derives her inspiration from traveling in Italy and France and her love of fashion.
• She uses ancient techniques to create modern designs that are feminine.
92
Danielle Welmond: Products and Prices
Prices from left to right: $54, $318, $318, $54
• Founded in 2013 in Budapest, Hungary.
• Believe in keeping craftsmanship alive. Items are handmade.
• A collaboration between Vanda and Barbara in a studio in Budapest.
• http://twofoldconcept.bigcartel.com/
• https://www.facebook.com/twofoldconcept/
94
Two Fold Concept: Products and Prices
Prices from left to right: $144, $144, $160
Kili Design
96
• Founded in April 14th
2013
• Located in Hong
Kong, China
• Unique designer
handbags and
shoes.
• They are trying to
make bags that
cannot
be found anywhere
else.
Kili Design: Products and Prices
Prices from left to right: $119, $112.
• Located in Bali, Indonesia.
• Handmade and materials sourced locally.
• They believe in sustainability and in fair trade.
98
Bali Elf: Products and Pricing
Prices from left to right: $52, $64, $56, $45
Paramithi• Brass and silver jewelry, handmade in Chania, Greece.
• Established in Dec. 14th 2012.
• They offer unique styles in rings, earrings, bracelets, and pendants.
100
Paramithi: Products and Pricing
Prices from left to right: $18, $18, $18, $18, $18, $18, $18.
LeChaim
• Based in Kyoto, Japan.
• Melanie designs jewelry
inspired by nature and
vintage.
• Items are all handmade.
LeChaim: Products and Prices
Prices from left to right: $12, $12, $12,
$12.
LDVC
• LDVC was founded by Ludovico Lombardi.
• Located in London, England, Ludovico has a background in architecture.
• He is focused on computational design, and organic design, with an avant garde style.
• http://ldvc.net/LDVC
LDVC: Products and Prices
Prices from left right: $135, $135, $135.
Ashley Scott
• Ashley Scott studied Fine art at Chicago State University and then Design at AI in Chicago.
• She was inspired to design accessories based on movement and unique materials.
• She exhibited her work in Japan for Toyota’s creative lounge. She is now based in Berlin, Germany.
• https://www.facebook.com/DRAPES-by-Ashley-Scott-157511449635/?fref=ts&ref=br_tf
• http://ashleydrapes.com/
Ashley Scott: Products and Prices
Prices from left to right: $160, $130.
Liebling Shoe
• Created in 2007 by Lori Livne. Based in Tel Aviv, Israel.
• They source leather from all over the world and manufacture the shoes in Tel Aviv.
• They believe in being very thoughtful and detailed oriented with each design detail.
• http://liebling-shoes.com/
• https://www.facebook.com/lieblingshoes/
Leibling Shoe: Products and Prices
Prices from left to right: $75, $60, $58, $95.
Trade Shows and Times
• Accessories the Show (New York) Feb 23rd
• Vendors to visit at show:
• Kurtulan Jewellery
• Jordan Scott Designs
• JA New York Show July 26th
• Vendors to visit at show:
• Corina Collections
• Mulberry + Grand
• Lula n’ Lee
110
Organizational Staff for Product Sourcing
Autumn Story will have only one employee in the first year. The sole employee will be responsible for going to the trade shows, show rooms, and maintaining the relationship with the vendors.
111
Merchandising Mix: Accessory Types
Sales
Shoes Jewelry bags
112
Shoes: 30%
Jewelry: 50%
Bags: 20%
Merchandising Mix: Vendor Breakdown
Quantity
Molly M Designs Paramithi Other
Stock List(Jewelry)
Fall/Winter Season #VALUE!
Style # Category Vendor Description Color Wholesale Retail Sizes SKU TotalCOG Total WHLS TotalRetail Total
Jewelry
1 earring LeChaim Orchid Flower Gold and Green $10 $25 4 40 $100
2 earring LeChaim Oak leaf Gold $10 $25 5 $50 $125
3 earring LeChaim Gold and Blue $10 $25 5 $50 $125
3.1 ring LDVC underwood lock bronze steel $80 $200 3 $240 $600
3.2 bracelet Ashley Scott Stone Icicle white $128 $320 2 $256 $640
3.3 ring LDVC underwood both sidesraw brass $80 $200 2 $160 $400
3.4 ring LDVC underwood both sidesnickel $80 $200 2 $160 $400
3.5 bracelet Isey Miyake pleated aluminum black $70 $175 4 $280 $700
Passionae murano glass lust red $180 $450 1 $180 $450
3.7 ring Passionae murano glass Cholera orange $180 $450 1 $180 $450
3.8 ring Passionae murano glass delight Blue and Gold $180 $450 1 $180 $450
4 earring LeChaim Bee Earings Gold and Orange $10 $25 5 $50 $125
5 earring Danielle Welmond Blue Topaz/14k Gold and Blue $54 $135 2 $108 $270
6 ring Danielle Welmond 14k/rainbow moonstoneGold and Iridescent $318 $795 6,7,8,9 1 $318 $795
7 ring Danielle Welmond 14k/peach moonstoneGold and Orange $318 $795 5,6,7,8,9 1 $318 $795
8 necklace Danielle Welmond Blue Topaz/14k Gold and Blue $54 $135 2 $108 $270
9 necklace Molly M Designs Warp 2 Silver $20 $50 4 $80 $200
10 earring Molly M Designs Warp 2 Silver $20 $50 4 $80 $200
11 necklace Molly M Designs Metal Pentahedron Gold $24 $60 4 $96 $240
12 necklace Molly M Designs Gold Plated Brass Gold $40.80 $102 4 $163.20 $408
13 necklace Molly M Designs Elliptiod Bronze, copper, silver $24.00 $60.00 4 $96.00 $240.00
14 necklace Molly M Designs Birch Black and Rose Gold $24.0 $60 5 $120.0 $300
15 ring Molly M Designs Bronze Sunburst Gold $16.80 $42 3 $50.40 $126
16 earring Molly M Designs Sterling Silver or BronzeGold $16.0 $40 4 $64.0 $160
17 necklace Molly M Designs Birch, Leather, Silver ChainPink, Blue, Brown $16.0 $40 4 $64.0 $160
18 necklace Omde'Onne Blue and Gold $16.0 $40 5 $80.0 $200
19 necklace Omde'Onne Green and Gold $16.0 $40 5 $80.0 $200
20 bracelet Paramithi Architectual Cutout german silver or brass $16.0 $40 4 $64.0 $160
21 bracelet Paramithi assymetrical brass cuffbrass $16.0 $40 4 $64.0 $160
22 earring Paramithi chandelier brass $16.0 $40 4 $64.0 $160
23 bracelet Paramithi tattoo brass cuff brass $16.0 $40 5 $80.0 $200
24 ring Paramithi Brass $16.0 $40 2 $32.0 $80
25 earring Paramithi chandelier brass $16.0 $40 5 $80.0 $200
26 ring Paramithi meditation ring Silver or brass $16.0 $40 4 $64.0 $160 114
Stock List (Bags & Shoes) Shoes
27 boot Verve and Spirit leather black or brown $28.80 $72 6,7,8,9,10 20 $576.00 $1,440
28 ankle boot Liebling Shoe leather dark blue $96 $240 34-42 12 $1,152 $2,880
29 ankle boot Liebling Shoe leather black $58.40 $146 35-42 12 $700.80 $1,752
30 heel Liebling Shoe leather yellow $119.60 $138 35-42 12 $1,435.20 $1,656
31 wedge Bali Elf leather Black, Tan, Emerald $64.0 $160 6,7,8,9,10 15 $960.0 $2,400
32 flat Bali Elf leather brown $56.0 $140 6,7,8,9,10 11 $616.0 $1,540
33 sandal Bali Elf leather brown $44.0 $110 35-43 6 $264.0 $660
33.1 boot Liebling Shoe leather brown $44.0 $175 35-42 16 $704.0 $2,800
33.2 ankle boot Abcense suede, leatherpeach, brown $198.0 $495 7,8,9,10, 6 $1,188.0 $2,970
33.3 ankle boot Jacob Birge Vision leather, patent leatherred, black and gray $76.0 $190 7,8,9,10 5 $380.0 $950
33.4 ankle boot Jacob Birge Vision leather, patent leatherred, black and gray $76.0 $190 7,8,9,10 5 $380.0 $950
35 heel Bali Elf leather nude, black $52.0 $130 6,7,8,9,10 19 $988.0 $2,470
Bags
36 Long Bogi Bag Cocoonobags vegan leathertan, black $24.0 $60 5 $120.0 $300
36.1 backpack Two Fold Concept tetra inverted, sheep leatherbrown $144.0 $360 2 $288.0 $720
36.2 backpack Two Fold Concept tetra inverted, sheep leatheryellow $144.0 $360 2 $288.0 $720
36.3 shoulder bag Matter Matters goat leather, pythagorus baglight blue $150.0 $375 3 $450.0 $1,125
36.4 Bucket Bag Matter Matters goat leather, bucketbrown $159.20 $398 3 $477.6 $1,194
36.5 Icicle Cluster BagAshley Scott $160.0 $400 1 $160.0 $400
37 Bucket Bag Cocoonobags vegan leatherbeige, burgandy $22.0 $55 6 $132.0 $330
38 Beetle Bag Kili Design leather black, brown $119.60 $299 4 $478.40 $1,196
39 Clutch Bag Cocoonobags vegan leatherburgandy, cream $13.20 $33 6 $79.20 $198
Totals $3,956 $9,794 286 $15,917 $38,900
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Finalized Assortment Plan (Jewelry)Fall/Winter Season #VALUE!
Style # Category Vendor Description Color Wholesale Retail Sizes SKU TotalCOG Total WHLS TotalRetail Total
Jewelry
1 earring LeChaim Orchid Flower Gold and Green $10 $25 4 40 $100
2 earring LeChaim Oak leaf Gold $10 $25 5 $50 $125
3 earring LeChaim Gold and Blue $10 $25 5 $50 $125
3.1 ring LDVC underwood lock bronze steel $80 $200 3 $240 $600
3.2 bracelet Ashley Scott Stone Icicle white $128 $320 2 $256 $640
3.3 ring LDVC underwood both sidesraw brass $80 $200 2 $160 $400
3.4 ring LDVC underwood both sidesnickel $80 $200 2 $160 $400
3.5 bracelet Isey Miyake pleated aluminum black $70 $175 4 $280 $700
Passionae murano glass lust red $180 $450 1 $180 $450
3.7 ring Passionae murano glass Cholera orange $180 $450 1 $180 $450
3.8 ring Passionae murano glass delight Blue and Gold $180 $450 1 $180 $450
4 earring LeChaim Bee Earings Gold and Orange $10 $25 5 $50 $125
5 earring Danielle Welmond Blue Topaz/14k Gold and Blue $54 $135 2 $108 $270
6 ring Danielle Welmond 14k/rainbow moonstoneGold and Iridescent $318 $795 6,7,8,9 1 $318 $795
7 ring Danielle Welmond 14k/peach moonstoneGold and Orange $318 $795 5,6,7,8,9 1 $318 $795
8 necklace Danielle Welmond Blue Topaz/14k Gold and Blue $54 $135 2 $108 $270
9 necklace Molly M Designs Warp 2 Silver $20 $50 4 $80 $200
10 earring Molly M Designs Warp 2 Silver $20 $50 4 $80 $200
11 necklace Molly M Designs Metal Pentahedron Gold $24 $60 4 $96 $240
12 necklace Molly M Designs Gold Plated Brass Gold $40.80 $102 4 $163.20 $408
13 necklace Molly M Designs Elliptiod Bronze, copper, silver $24.00 $60.00 4 $96.00 $240.00
14 necklace Molly M Designs Birch Black and Rose Gold $24.0 $60 5 $120.0 $300
15 ring Molly M Designs Bronze Sunburst Gold $16.80 $42 3 $50.40 $126
16 earring Molly M Designs Sterling Silver or BronzeGold $16.0 $40 4 $64.0 $160
17 necklace Molly M Designs Birch, Leather, Silver ChainPink, Blue, Brown $16.0 $40 4 $64.0 $160
18 necklace Omde'Onne Blue and Gold $16.0 $40 5 $80.0 $200
19 necklace Omde'Onne Green and Gold $16.0 $40 5 $80.0 $200
20 bracelet Paramithi Architectual Cutout german silver or brass $16.0 $40 4 $64.0 $160
21 bracelet Paramithi assymetrical brass cuffbrass $16.0 $40 4 $64.0 $160
22 earring Paramithi chandelier brass $16.0 $40 4 $64.0 $160
23 bracelet Paramithi tattoo brass cuff brass $16.0 $40 5 $80.0 $200
24 ring Paramithi Brass $16.0 $40 2 $32.0 $80
25 earring Paramithi chandelier brass $16.0 $40 5 $80.0 $200
26 ring Paramithi meditation ring Silver or brass $16.0 $40 4 $64.0 $160 116
Finalized Assortment Plan (Bags & Shoes)
Shoes
27 boot Verve and Spirit leather black or brown $28.80 $72 6,7,8,9,10 20 $576.00 $1,440
28 ankle boot Liebling Shoe leather dark blue $96 $240 34-42 12 $1,152 $2,880
29 ankle boot Liebling Shoe leather black $58.40 $146 35-42 12 $700.80 $1,752
30 heel Liebling Shoe leather yellow $119.60 $138 35-42 12 $1,435.20 $1,656
31 wedge Bali Elf leather Black, Tan, Emerald $64.0 $160 6,7,8,9,10 15 $960.0 $2,400
32 flat Bali Elf leather brown $56.0 $140 6,7,8,9,10 11 $616.0 $1,540
33 sandal Bali Elf leather brown $44.0 $110 35-43 6 $264.0 $660
33.1 boot Liebling Shoe leather brown $44.0 $175 35-42 16 $704.0 $2,800
33.2 ankle boot Abcense suede, leatherpeach, brown $198.0 $495 7,8,9,10, 6 $1,188.0 $2,970
33.3 ankle boot Jacob Birge Vision leather, patent leatherred, black and gray $76.0 $190 7,8,9,10 5 $380.0 $950
33.4 ankle boot Jacob Birge Vision leather, patent leatherred, black and gray $76.0 $190 7,8,9,10 5 $380.0 $950
35 heel Bali Elf leather nude, black $52.0 $130 6,7,8,9,10 19 $988.0 $2,470
Bags
36 Long Bogi Bag Cocoonobags vegan leathertan, black $24.0 $60 5 $120.0 $300
36.1 backpack Two Fold Concept tetra inverted, sheep leatherbrown $144.0 $360 2 $288.0 $720
36.2 backpack Two Fold Concept tetra inverted, sheep leatheryellow $144.0 $360 2 $288.0 $720
36.3 shoulder bag Matter Matters goat leather, pythagorus baglight blue $150.0 $375 3 $450.0 $1,125
36.4 Bucket Bag Matter Matters goat leather, bucketbrown $159.20 $398 3 $477.6 $1,194
36.5 Icicle Cluster BagAshley Scott $160.0 $400 1 $160.0 $400
37 Bucket Bag Cocoonobags vegan leatherbeige, burgandy $22.0 $55 6 $132.0 $330
38 Beetle Bag Kili Design leather black, brown $119.60 $299 4 $478.40 $1,196
39 Clutch Bag Cocoonobags vegan leatherburgandy, cream $13.20 $33 6 $79.20 $198
Totals $3,956 $9,794 286 $15,917 $38,900
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Development Calendar
Sourcing
Calendar
Vendors Season January February March July August September
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
A.
Trade Show
Feb
23rd
Molly M
Designs
Spring Preview PO LT LT
Deliver
y
Fall PreviewPO LT LT
Deliver
y
Danielle
Welmond
Spring Preview PO LT LT
Deliver
y
Fall Preview PO LT LT
Deliver
y
LeChaim
Spring Preview PO LT LT
Deliver
y
Fall Preview PO LT LT
Deliver
y
Paramithi
Spring PreviewPO LT LT
Deliver
y
Fall PreviewPO LT LT
Deliver
y
BaliElf
Spring Preview PO LT LT
Deliver
y
Fall Preview PO LT LT
Deliver
y
Jacob
Birge
Vision
Spring Preview PO LT LT
Deliver
y
Fall Preview PO LT LT LT
Deliver
y
Matter
Matters
Spring Preview PO LT LT LT
Deliver
y
Fall Preview PO LT LT
Deliver
y
Two Fold
Concepts
Spring Preview PO LT LT
Deliver
y
Fall PreviewPO LT LT
Deliver
y
JA New York Trade Show July
26th 118
Marketing and Promotion
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Marketing Impact on Thesis
• Financial Impact: The intention is to use around 8% of the budget on marketing.
• As a small online business, the emphasis will be towards online marketing and social media.
• However, direct marketing and in home media will also be implemented.
• Market Research: The research conducted on the interests of the Primary, Secondary, and Tertiary customers show that certain demographics are more prone towards those interests.
• It’s important to consider the age range of different interests, and to put that into perspective when choosing price ranges, and channels to advertise on.
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Marketing Strategy
• Autumn Story is focused on fostering and helping Independent designers increase their brand awareness, drive sales, and foster a creative atmosphere that shares the design inspirations and processes. Autumn Story seeks to have an online design community.
• Autumn Story values the feedback and opinion of their customers. The e-commerce stores hopes to have many online tools to foster feedback, reviews, and direct opinions to help the designers gain a relationship and understanding with their customers.
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Marketing Strategy Continued
• Autumn Story would like to achieve the goal of promoting designers by having an online magazine, videos, and to create an atmosphere of an engaging community.
• Autumn Story would like to have a relationship with other organizations that foster creativity and to sponsor creative events. As an online store and magazine, Autumn Story will have an online focus, as well as participate in fashion events and activities.
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3. Marketing Goals and Objectives
1. To increase website traffic. Initial objective of 1500 visitors a month with a conversion rate of 3%.
2. To increase brand awareness. Post on social media once a week. Post videos to YouTube on design stories once every 2 weeks.
3. Increase AOS (Average order size) by giving incentives to make larger purchases through discount promotions. Promotions to be offered on important holidays, and special events. Promotions will be driven to increase AOS by giving discounts and free shipping on purchases over $50.00 or $100.00.
4. To increase awareness of brands within the niche market. Place ads in specific topic, trade, and niche magazines related to fashion, design, and jewelry.
5. Have exposure driven through endorsements and affiliate marketing. Find an affiliate to endorse products from the website once a month.
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Campaigns
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Campaign Name: Emerging Talent #1
• Theme: To host a design competition for new fashion designers. Will feature the designer in the magazine, and sell their products on the e-commerce site. Will feature the winner in the online magazine and throw a fashion party for the winner.
• Target Audience: Primary Customer: Urban Creative Professional, ages 25-34.
• Objectives: To promote fashion designers, find new talent, and make customers aware of the brands’ goal to promote independent and emerging fashion designers.
• Goals: To communicate this contest to creative professionals in the fashion industry. Try to reach 4000 creative professionals.
• Time Frame: Advertised in January through March. Contest due date April 25 th.
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Emerging talent #1
• Media Mix: Industry websites such as apparelnews.net and fashiontrendsetter.com. Social media such as Facebook, Twitter, Tumblr and Instagram.
• Metrics used to Measure campaign effectiveness: How many designers apply to the contest and how much trafficncreased traffic to the website.
• Budget of Campaign: $1700.00
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Designer Video #2
• Theme: Create a short video about a independent fashion designer.
• Target Audience: Primary Customer, Urban Creative Professional
• Objectives: To promote learning about designer’s stories and inspirations behind designs.
• Goals: To reach 6000 views.
• Time Frame: To be released once a quarter. Each quarter have 2 weeks preparations to make the video. Awareness of the video generated through 3 days of emails and banners.
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Campaign Name: Designer Video #2
• Media Mix: YouTube, Autumnstory.com, Tumblr, Email, and website banners.
• Metrics used to Measure campaign effectiveness: Click through rate, views of the video, and traffic to the site.
• Budget of Campaign: $1600. $400 each quarter. March, June, September, December.
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Campaign Name: Find world Treasure #3
• Theme: Advertise that we sell products from designers from various parts of the world.
• Target Audience: Secondary Customer (Cultural Traveler)
• Objectives: To see which country/region leads to the highest click through rate and traffic to the site.
• Goals: To relay this information through the internet to around 8,000 people.
• Time Frame: To run the ads during the month of January, June and October. Will run ads featuring different regions to see which ads gains the most traffic.
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Find world treasure #3
• Media Mix: Emails, banners, and affiliate ads and social media that focus on a certain part of the world.
• Metrics used to Measure campaign effectiveness: Traffic to the site, click through rate.
• Budget of Campaign: $1500. $500 in the month of January, $500, in the month of June and $500 in the month of October.
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Campaign Name: Get 25%-40% off #4
• Theme: To promote special savings on merchandise for special holidays and events.
• Target Audience: Primary, Secondary, and Tertiary Customers.
• Objectives: To be competitive with other businesses that offer special deals during holidays and events.
• Goals: To contact 4000 customers.
• Time Frame: 2 weeks before New Years, Valentines Day, Mother’s Day, Father’s Day, Independence Day, Memorial Day, Labor Day, Thanksgiving, Hanukah, and Christmas.
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Get 25%-40% off #4 • Media Mix: Bloggers, email, social
media, banners, outdoor media and the website.
• Metrics used to Measure campaign effectiveness: Traffic to the site, and conversion rate.
• Budget of Campaign: $300 for each holiday: $2100
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Campaign Name: Sustainable Design #5• Theme: To educate customers that we sell sustainable and environmentally friendly designs
on the site.
• Target Audience: Tertiary Customer (Aware Consumer)
• Objectives: To attract the tertiary customer to the site and have conversions.
• Goals: To reach 3000 consumers.
• Time Frame: February, July and September
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Sustainable Design #5
• Media Mix: Banners, Magazines, Direct mail, online google ads, outdoor media at events, Instagram, Facebook, Pinterest and Bloggers such as Wendy’s Look Book.
• Metrics used to Measure campaign effectiveness: Increased traffic to the site.
• Budget of Campaign: $1500 altogether, 500 for each of the three months.
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Marketing Communications Strategy
136
SEO and SEM
Autumn Story’s ecommerce site will have a magazine attached to the website to help web crawlers find more key words.
Search Engine Optimization words and key phrases will be determined by programs called Longtail Pro and Google Adwords.
An emphasis will be on less searched, and less competitive keywords to attract buyers of niche products.
Search Engine Marketing will mainly be used during special holidays and important events such as back to school.
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Keywords to be used
Emerging Designer Jewelry
Unique Jewelry
Unique Accessories
Independent Designer Jewelry
Sustainable Jewelry
World Jewelry
Unique World Jewelry
Unique Necklaces
Handcrafted earrings
Fair Trade Jewelry
Eco-Friendly Jewelry
Specific Designer Names, i.e Molly M. Designs
138
Email Marketing
Will gather emails for marketing campaigns through giving a 15% off first order to sign up for email promotions and for the newsletter.
Emails will be gathered from the online store, m-commerce store, and magazine.
Promotional, discount emails will be sent out during special holiday sales.
Newsletter of current trends, designer news and updates and new inventory will be sent out every two weeks.
3 weeks after a purchase is made, an email will be sent asking for customer feedback and a review of the purchase.
Email will be sent out after speaking with customer service to survey if they had a good experience and to give feedback.
Will ensure a way to opt out of future emails and a privacy policy is made available.
Will include special discounts of 15% off for referring a friend through email.
139
Sale Promotions
Will offer sale promotions of 25-40% off during special holiday seasons.
Holidays will be New Years, Valentines Day, Mother’s Day, Father’s Day, Independence Day, Memorial Day, Labor Day, Thanksgiving, Hanukah, and Christmas.
Marketing campaign will start 3 weeks before the Holiday starts and run until the day of the holiday.
Free shipping on orders over $100
Free Returns
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Marketing Affiliates (Bloggers, PR)
I will work with bloggers and fashion news websites to advertise on their site. I will have both display ads and banner ads on their site.
I will also have two events a year and send out press releases to local newspapers, bloggers and magazines to feature the event. One event will be a special trunk show for independent and emerging designers. The other event will be a fashion contest and party for the winner of the contest.
141
Blogger and Fashion Websites to Advertise on
142
Fashionista is a news site that covers trends related to
fashion. They have a monthly readership of around
2.5 million people.
Each month over 700,000 people read the
newsletter and website. This site gives in depth news
on current fashion trends and colors. It gives an
advantage because these trend forecasts are at no
subscription costs. They also feature new clothing
and jewelry designs.
Wendy’s Lookbook is a fashion blog that features
many helpful fashion tips. They have very well
followed social media profiles. Their YouTube profile is
especially well followed with around 600,000
subscribers.
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Every Autumn, Every Season’s Fashion Story
For Immediate Release
January 15th 2017
Autumn Story is an online magazine and e-commerce site focused on finding and promoting fashion
designers. Our online store sells independent and emerging fashion designs. The magazine, newsletter
and social media outlets work to promote the story and inspirations behind the designs.
We are grateful to announce that we are sponsoring a fashion design competition that will look for
fashion designs from independent and emerging creative fashion designers. Please see our website for
submission guidelines.
The last day to enter the contest will be on April 25th 2017. The winner of the fashion design contest will
be featured in our magazine, their products will be made available through the e-commerce site and we
will help them put on a fashion show with funds and proceeds from the ecommerce store.
For more information on Autumn Story Inc. please contact:
Kay Dunton 800-288-9934 [email protected] Autumnstory.com
Example of a Press
Release
Display ad Example
144
Social Networking
Content on Facebook, Twitter, Tumblr, and Instagram to be the same.
Content on these four social media sites will focus on giving style tips, notifying of promotions, introducing designers, and contests.
Will increase user interaction and participation by having social media only contests where users can win a prize if their photo is picked to be shared on our social media platform.
One post will be uploaded daily to these four social media sites.
Pinterest will have boards for each product category on the site that will also feature different designers. Boards will be updated as new inventory is delivered.
Polyvore will have “sets” created featuring products from the e-commerce site. A set will be created once a week.
Special promotions will be offered to social media fans. They will click in the link for the promotional code.
145
146
147
Social Networking Examples: Pinterest
148
Direct Marketing
Newsletters will be sent via email.
Autumn Story Magazine.
Direct mailers will be sent out to urban areas near special events and in person promotions. Direct mailer list will be purchased through the postal service.
These will be sent out twice a year for the special trunk/trade show once a year, and for the Fashion contest/party. basis. Other marketing for these two promotional events, online marketing will be the focus of Autumn Story.
149
Example of Direct Marketing: Post office mailers.
150
Autumn Story Fashion Magazine The content of the magazine on the e-commerce site will engage the customers by giving stories
about the designers and the brands. It will show the creative process and inspirations behind the designs.
Care will be taken to have professional grade photos of the designs, designers, and the creative process.
The magazine will also feature style advice and display interesting, and beautiful content.
Current fashion trends will be featured as well.
Travel advice and fashion around the world articles will also be discussed.
The magazine will also have articles that promote eco-friendly designers and design stories, and businesses that promote fair wages and trade.
A Newsletter will be sent out every 2 weeks featuring some of the content from Autumn Story Fashion magazine.
Will give readers the opportunity to contribute articles to the magazine, and to write letters to the editor.
Will have contests and giveaways to stimulate readership.
Posts onto the magazine will appear at a minimum of twice a week.
151
In Home and Out of Home Marketing
Out of Home Marketing
Autumn Story will have posters and flyers given out at special fashion events to advertise the website.
Autumn Story will also have posters and flyers at tradeshows and trunk shows to advertise the site.
In Home Marketing
Advertisements will be featured in niche fashion magazines and regional magazines that have a lower circulation to save on marketing costs.
Press releases will be sent out to local magazines, bloggers and newspapers of special events, promotions and news about featured designers.
152
Example of Magazine Ad
153
Customer Interface Technology
Favor items onto a wish list.
Advanced Search to find items on the site.
Saving customer profile and information onto the site for ease of checkout.
Emailing promotions and newsletters once every 2 weeks to customers who signed up on the website using Send Blaster or other email programs.
Promo Engine to ensure valid use of promotional codes.
Live chat through the website.
Customers won’t have to call us. They will send a page through the website to have an Autumn Story call center agent call them right away.
Integrated Magazine into the site.
Social Media Integration to the site.
Loyalty program to track purchase amounts and give discounts when amounts are reached.
Technology to review and rate products and upload photos of customer’s wearing the product.
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Marketing Budget
Marketing Campaign Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Year Total
Emerging Talent 566.00$ 566.00$ 566.00$
Designer Video 400.00$ 400.00$ 400.00$ 400.00$
Find World Treasure 500.00$ 500.00$ 500.00$
Get 25% to 40% off 300.00$ $300.00 300.00$ 300.00$ 300.00$ 300.00$ 300.00$
Sustainable Design 500.00$ 500.00$ 500.00$
Total Budget 1,066.00$ $1,366.00 966.00$ $300.00 300.00$ 900.00$ 800.00$ -$ 1,200.00$ -$ 300.00$ 700.00$ 7,898.00$
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Marketing Calendar
Month Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Key Dates and Events
Sales Promotions 25%-40% off 25%-40% off 25%-40% off 25%-40% off 25%-40% off 25%-40% off 25%-40% off
Social Media
Social Media Designer Video Designer Video Designer Video Designer Video
Magazine ads
Newspaper ads
Facebook ads
Key word SEO, SEM
Press Releases
Special Events and Promotions Find World Treasure Sustainable Design Find World Treasure Sustainable Design Sustainable Design Find World Treasure
Direct Mail
Banners
Emerging Talent Competition
156
Strategy Development: Research and Insights
• I learned that Millennials from 25-34 are more likely to buy something to make a fashion statement than other generations and they are doing 2/3 of the jewelry purchases. This helps me to narrow down my target market within this field since my products are unique.
• I also learned that purchases on mobile devices are increasing so it’s important to sell on that platform as well.
• A major reason for shopping online is convenience. The strategy to make my site very easy to use and convenient is really important.
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Brand Strategy
• The strategy of the brand is to sell unique items that are still wearable and affordable. There are a lot of sites selling unique items, however they are often either expensive or not something a normal person could wear in real life. Autumn story will try to strike a creative balance that is practical for the average consumer.
158
Product Strategy
159
Autumn story will start by only selling jewelry, shoes and handbags to cut back
on expenses and to make inventory easier to manage. This strategy is also
based on the fact that consumers are more willing to buy jewelry from a
designer they never heard before, and consumers are more willing to purchase
unique jewelry, shoes and handbags that are interesting and unique.
Pricing Strategy: Price and Profitability
• The strategy is to focus on middle range items. They will not be too expensive or cheap. This is because the focus is on unique and innovative design, and not luxury products. It is meant to appeal to a younger audience that may be more willing to take risks, but may not have as much income.
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Distribution Strategy
• Will start an ecommerce store on the internet through WordPress Business or weebly.com. Will focus on selling to the United States, and to medium and bigger urban areas. Have long term goal of being a global shipper, however, it’s important to run the business in increments and expand slowly.
161
Service Strategy
• To have an interactive community on the site where customers can post opinions, pictures, and comment. Would like to have a social media presence on Facebook, YouTube, Instagram and other platforms. Would like to offer quick shipping and free returns to make the shopping experience more enjoyable. Would be able to respond to all customer inquiries right away and have real time messaging.
162
Marketing Promotion and Strategy
• To promote through the magazine and social media. There will be a lot of media and videos as well through YouTube. Emphasis on online community where people can share ideas. Magazine will promote designers and business ideas.
163
Future Markets
• In the future, would like to expand to global shipping and have the website available in different languages. There is opportunity to have a real brick and motor store off line as well.
164
Location Analysis and Business Type
• Autumn Story would be located online. Long term goal will be for it to be an international website that includes all countries and demographics in the creative and expressive narrative. Would eventually like to have it translated into other languages. Ecommerce store and Magazine would be located in either Northern or Southern California or in the Tri-State (New York, New Jersey, Pennsylvania) or Delmarva (Delaware, Maryland, Virginia.) area.
• Income taxes for the state of Delaware are low at around 6%. As a sole Proprietor or a LLC, taxes will be applied the same as done with regular income taxes for a business. Autumn Story will be formed as a LLC. Delaware is situated in a perfect spot for shipping within the east coast. It is close to 4 major cities, New York, Philadelphia, Baltimore, and Washington, D.C.
• The legal fees and state laws to be licensed to do business in Delaware are small and would be estimated at around $400. depending on how I would consider to incorporate.
165
Physical Location• The business will be located in outer suburbs of Wilmington, DE. There will be two
offices on the 3rd floor and storage for inventory in the 1st floor. The mortgage will be $800 a month.
Floor Plans (Partial, only space used for Business shown.)
First Floor Third Floor
Branding
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Inspiration for Business Name and Logo
• The name Autumn Story comes from the concept of a designer telling their story regarding the inspiration for their designs. There are so many seasons and cycles in fashion, Autumn Story is in reference to these facts.
• The logo changed four times. Being dissatisfied with the first three logos, I looked at many logos for inspiration. The final logo is inspired from the symbol for Biohazard and Citrico. I googled orange logos, blue logos, etc, and originally I thought orange was too cliché for a store named Autumn Story, but the orange logos looked very happy and modern. I always liked the biohazard symbol as well. I took the idea of a leaf from the time of year and implemented these two logos into the design:
169
Goals and Objectives of Visual Plan
• Increase awareness of Autumn Story.
• Differentiate Autumn Story from competitor brands.
• Be memorable.
• Be interesting and witty.
• Be bold
• To fit the brand personality.
170
NAMES, LOGOS, AND SLOGANS• Name and Logo:
• Slogans: “Every Autumn, Every Season’s Fashion Story”
“Finding Unique and Independent Fashion Designers”
171
COLORS, SHAPES, AND FONTS
• Color: Orange and grey
• Shapes: Three leaves
• Font: Nirmala UI
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Shipping Box and Tag
Stationary
Business Card
175
Product Page
Checkout Page
Email Branding
179
Operation Plan
Employees by Growth • Year 1: One employee. (Self-employed)
• @ 35% growth: Two employees. (Self and one full time)
• @ 120% growth: Three employees. (Self and two full time.)
• @ 300% growth: Seven employees. (Self and six full time.)
Objectives of Autumn Story• Buy Wholesale products
• Post and remove(update) products on e-commerce site and pictures and descriptions
• Maintain the website
• Ship to customers
• Website security and fraud monitoring
• Customer service via email and instant messaging.
• Find businesses and designers for the newsletter/magazine
• Write articles and edit for newsletter/magazine
• Maintain social media accounts
• Create videos focused on the designers
• Create Marketing Campaigns and find outlets to place the ads
• Public Relations, collaborations and events
• Finance and accounting
Roles and responsibilities of Manager (CEO): Sole employee: year one.
• Maintains website security and fraud checking.
• Keeps product listing up to date adding pictures and descriptions.
• Shipping products to customers in a very timely fashion.
• Processes shipping and returns in a timely fashion.
• Answer customer complaints and inquiries.
• Marketing and Public relations. Create ads for print and internet. Writing marketing emails.
• Update social media accounts.
• Find advertising outlets and PR events and contacts.
• Buying wholesale products, attending trade shows and show rooms.
• Magazine/newsletter editor and writer.
• Finance and accounting, bookkeeping.
• Pay: $21,000 for the first year. Rent partially included in business expenses.
Outsourced roles and Growth plan.
• No roles will be outsources. Have taken accounting, marketing, product sourcing and journalism classes. Have the knowledge to do all roles. Will seek advice and counseling from friends and professionals in the industry. Will seek to hire interns as well.
• Website Maintenance will be done in house. Posting pictures, writing product descriptions, and web design. There are many very user friendly e-commerce platforms such as weebly, wix and shopifiy.
• Product and sales volume is small for the first year, though there are many tasks, should be feasible for a low volume business. Goal is to start out small and build and expand the business and the inventory gradually.
• With growth and expansion and the hiring of new employees, the first roles additional staff will take on the responsibility of shipping and returns and customer service.
Organizational Chart for 300% Expanded Growth
CEO
• Roles and Responsibilities
• The CEO will be responsible for attending trade shows, show rooms, and buying.
• Supervising and leading the team
• Maintaining wholesale relationships
• Updating the magazine and seeking talent for the magazine
• Hiring and firing new employees
• Skills Needed: Multi-tasking, leadership, time management skills, risk taking, decisiveness, and communication skills. Good at reading and writing. Knowledge of fashion industry trends, and business trends.
Marketing and PR
• Roles and Responsibilities• Designing visual display ads for affiliate websites and for in home media such
as magazines.
• Updating social media accounts.
• Finding locations to advertise with.
• Organizing PR events and sponsorships.
• Leading Customer Care and updating of any sales and campaigns.
• Liaising with bloggers, social media and other businesses.
• Skills Needed: Adobe Photoshop, Illustrator, Social media, blogging, journalism, public speaking. Written and oral communications skills, team work. Market research skills, trend analysis.
Customer Care
• Roles and Responsibilities:
• Inbound and outbound customer contact via email, phone, fax, and online instant message.
• Conflict Resolution, returns, chargebacks, disputes, and fraud detection.
• Selling and customer feedback.
• Making the sure the customer is satisfied and they were helped with their concerns.
• Skills Needed: Diplomacy, patience, able to be polite in stressful situations, friendly and charming personality, extra helpful—taking extra steps to help the customer. Excellent communication skills (written and oral), empathetic, and problem solving.
Financial Officer
• Roles and Responsibilities:
• Bookkeeping, tracking receipts, payroll, investing, planning budget. Overseeing shipping and fulfillment.
• Skills Needed: Accounting and bookkeeping knowledge, financial planning and budgeting. Liaison with investment companies. Good team work and team building skills to get other employees to give pertinent financial information. Time management and organization skills.
Shipping and Fulfillment
• Roles and Responsibilities:
• Pack products to be shipped to the customer very quickly.
• Send packages to the correct address at the lowest prices, and best service.
• Buy insurance for packages.
• Process returns.
• Update inventory and keep inventory up to date.
• Work with Website coordinator to make sure inventory is up to date.
• Skills Needed: Able to stand and work quickly, attention to detail, keeping track of data, good vision and able to search for key items. Team work and time management skills.
Website Coordinator
• Roles and Responsibilities:
• Site security, ssl certificate, fraud insurance, fraud detection.
• Posting products on website, taking pictures and writing product descriptions.
• Supervising and working with the Magazine Editor.
• Design of the website and updating content.
• Skills needed: website maintenance, fraud knowledge, html, java, photography, PhotoShop, InDesign, Illustrator, website, internet, writing skills.
Magazine Editor
• Roles and Responsibilities:
• Proof reading and fact checking articles for the online magazine.
• Updating and arranging articles on the magazine.
• Finding guest writers, and bloggers for different articles.
• Taking pictures and adding visual content to the articles.
• Writing content for the magazine.
• Knowledge of how to write an enticing tag line to get readers interested.
• Skills Needed: Team work, time management, writing, journalism, research, persuasiveness, photography, graphic layout knowledge, communication skills, grammar, spelling, interesting.
Employee Policy• Hours Of Operation: Monday through Friday 9 am to 6pm and Saturday 11 am to 4 pm.
• Holiday Observations: New Years Day, Martin Luther King Jr., Independence Day, Memorial Day, Labor Day, Thanksgiving Day, and Christmas.
• Benefits: Vision, Dental, Health, disability, legal insurance, 401k at 5% match.
• Employee discounts: 15%
• Vacation Time/Sick Leave/Personal Days: Will all be lumped into one program called personal time off, i.e. PTO. This is so that employees will not be punished for sick time. PTO will be 18 days a year.
• Shift schedule: Lunch will be 1 hr. Full time will work 9 am to 6 pm. Part time mornings or afternoons and can vary with choice.
Compensation at expanded growth. (Not first year)
• CEO will make $60,000 a year. (Not during the first year. This is after expansion and growth.)
• Financial Officer, Website Coordinator, Magazine Editor, Marketing and PR Officer will make $50,000 a year.
• Customer Care, Shipping and Fulfillment will make $45,000 a year.
Customer Policy
• Terms: Must be 18 years or older to use website. Must accept use of cookies. May only use pictures and data from the site for personal use and not republish.
• Return policy: 30 days return or exchange policy.
• Type of payments accepted: PayPal, Amazon, Google Wallet, MasterCard, Discover, Visa, American Express.
• Return and Exchange Policy: Will refund money at proof of returned in mail via email or when package is received. Will send pre-paid return label, if item was damaged or defective or the wrong size.
• Shipping Policy: Allow 1-3 days to process the order. Shipping will be free over $60. Shipping will be $7.50 for 8-15 days, $10 for 7-12 days, and $20 for expedited shipping.
• Cancellations possible if items have not yet been shipped. After shipping, a return will be needed.
Financial Plan
• Financial Summary
• Autumn Story is planning to have $95,000 in sales the first year. COGS is estimated at $43,000. Autumn Story is planning to start small and expand at a rate of 5% the second year and 9% the third year. This strategy of slow growth will be best to offset the burden of paying large loan payments each month. Later on, more capital can be free to pay for COGS, marketing, employees, rather than large loan payments. Autumn Story plans to create extensive online presence and to focus on marketing as a driver to growth. 8% of sales will be part of the marketing budget. This budget will be around $7500.
• Start Up Costs
• I will be the only employee for the first year of business, and will be working from home. This minimizes some expenses. Rent will be a portion of the home expenses. Working capital will be $6000, Contingency Reserve will be $12,000. Marketing startup expenses will be $2,500. Wages will be $5,100 for the first 3 months. Opening inventory for the first three months will be $9,914. Technology and phone expenses are around $1200. Furniture for the online business is around $800. Credit card fees, internet, domain, security, insurance, accounting and other expenses are around $4000.
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• Source of Funds
• Startup costs will be $44,000. The main expenses will be COGS and Salary. The funds will come from savings, grants and loans.
• Use of Funds
• The funds will be used to pay for an online e-commerce presence, inventory, salary, and for marketing. I will be using either weebly, or Bluehost to host the website, and wordpress.org with woo commerce to provide the tools to bring the site to life. I will design the site myself. Marketing will be done mostly online, through email, SEO, SEM, banner ads, social media, and Public Relations. Some marketing will be through niche magazines and direct mailers.
• Income Statement Projections
• Net sales will be at around $95,819. COGS is at around $47,605. Other expenses total $45,662. That equals a profit of $2,552.
• Product Pricing Mix
• Autumn Story will like to provide a platform for unique and independent designers to sell their goods. Autumn will focus on selling jewelry, shoes and bags initially. As the store becomes more established, Autumn Story will expand to sell clothing for men and women as well. The goods sold on Autumn Story would range from $30 to $500.
• Target Customers
• Autumn Story’s Primary Customer is female, 23-34 years old, a creative professional, makes $35,000-$75,000 annually, urban, and a college graduate. They are interested in art, design and self-expression. Autumn Story’s Secondary Customer is female, 18-24 years old, interested in cultures, travel and the world. Autumn Story is focused on finding interesting designers from around the world, and a creative and wondering personality would fit into this demographic. Autumn Story’s Tertiary customer is female, suburban, has attended graduate school, interested in fair trade and in sustainable, eco-friendly products. Their age range is from 35-49 years old.
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• Marketing Plan
• Autumn Story is an online store and magazine. Marketing will be primarily done through email, SEO, SEM, banner ads on third party sites, PR through bloggers, social media etc. There will be sales, contests, and markdown promotions for special events and holidays. There will also be periodic ads in niche magazines as well as limited direct mail advertisements. The marketing budget will be just under 8% of the first year’s profits, which will be at around $7,600.
• Sales and Inventory by Month
• The first month will have lower sales and inventory than other months. The average inventory or COGS per month will be $4000 and the average sales will be at around $8000. This is an average and the amount varies slightly month to month.
• Growth Plan
• Autumn Story’s strategy to increase sales and profits is by focusing on expanding the marketing and inventory budget on a gradual basis. In the first year Autumn Story will have one employee. By the second year, Autumn Story would like to hire one additional employee to do customer service and shipping. The marketing expansion would also be done through social media, online ads, and niche magazines. Special social media collaborations and PR events will be a part of the marketing mix as well. Another growth strategy is to invest more in inventory by buying more depth and breadth of SKUs for jewelry, bags and shoes. Inventory expansion will also be done through buying other types of products such as apparel and home goods for both men and women. The plan is to increase the business by 6% during the 2nd year and 9% during the 3rd year.
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Business Milestones
• 1) Working Website.
• 2) 10 entries in the magazine/newsletter.
• 3) 3 social media sites with 2 posts a week for 3months.
• 4)12 Vendors selected.
• 5) 3 Tradeshows visited.
• 6) 2 videos on YouTube.
• 7) 5 marketing promotions planned.
• 8) Email marketing campaign created.
• 9) Marketing Schedule and Buying Schedule created for next year.
• 10) Search engine marketing set up.
• 11) Banner ads created to be advertised on 2 sites.
• All would be done in 3 months before the launch of business.
•
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Goals for Expansion Post Business Creation
1) Traffic to the site: To have 1200 visitors to the site the first month. To increase traffic by 10% after three months.
2) Readers to the magazine. Increase readers to the magazine to 10,000 within the first 6 months.
3) Increase Average order Size: Add incentives to increase AOS by 25% within the first year.
4) Conversion Rate: To increase conversion rate to 4% of site traffic from 2%.
5) Inventory Size: To increase inventory budget by 10% each year to expand growth.
6) Marketing Budget size: To increase marketing budget from 8% of budget to 10% of the budget in year two.
8) Increase effectiveness of SEO and marketing ads: Increase click through rate from 1-2% to 5%.
Start Up Costs
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Item Detail $ Amount Depreciate ?# Months of
Useful Life
Monthly
Depreciation
Expense
Technology and PhonesCash Register, Fax/Copier, Printer,
PC, Phones,Software$ 1,215.00 Yes 60 $ 20.25
Selling Floor and Backstock FixturesFloor Fixtures/Shelves, Display
Tables, Jewelry Cases$ 800.00 Yes 60 $ 13.33
Leasehold Improvements (Material &
Labor)
Flooring, Paint, Electrical, Light
Fixtures, Fitting Rooms, Doors,
Signage, Awning & Labor
$ 200.00 Yes 60 $ 3.33
Rent Deposit 3 Months Rent Deposit $ 3,300.00 No n/a
Wages and Salaries 3 Months $ 5,100.00 No n/a
Marketing Startup Initial Marketing Campaign $ 2,500.00 No n/a
Opening Inventory Cost BOM$ Inventory $ 9,914.60 No n/a
Other Start Up ExpensesPermits, Insurance, Utility Deposits,
Supplies$ 3,924.00 No n/a
Contingency ReserveExtra Cash for Unforeseen Expenses
and Repairs$ 6,000.00 No n/a
Working CapitalCash Needed in first months to keep
bank funds positive $ 12,000.00 No n/a
Total $ 44,953.60 $ 36.92 203
Assortment Plan
• Autumn Story will focus on selling accessories to women 18-45 during the first year of business. Jewelry, Shoes and bags will be the main focus of sales. Jewelry will be the top focus with 50% of sales, then shoes and bags. The brands will not be well known brands, but rather independent and creative artists. Brands such as Bali Elf, Mollie M Designs, and Paramithi will be featured.
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• Assortment Plan
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55% IMU % Spring/Summer 10.00% 20.00% 15.00% 15.00% 25.00% 15.00% 100%
Fall Winter 15.00% 10.00% 15.00% 20.00% 25.00% 15.00% 100%
Limited 0%
Season Class Vendor SKU Item Color Sizes
Target
Whls
Target
Retail
Projected
SEASON
unit sales
Projected
annual $$
sales Min Units Min COG Min Retail
Opening
Units Opening COG
Opening
Retail Feb Units Feb COGS Feb Retail Mar Units
Mar
COGS Mar Retail Apr Units
Apr
COGS Apr Retail May Units
May
COGS May Retail Jun Units Jun COGS Jun Retail Jul Units Jul COGS Jul Retail Aug Units Aug COGS Aug Retail Sep Units Sep COGS Sep Retail Oct Units
Oct
COGS Oct Retail Nov Units Nov COGS Nov Retail Dec Units Dec COGS Dec Retail Jan Units Jan COGS Jan Retail
Total
Units
Total
COGS Total Retail
SPRING Jewelry Molly M Designs 9 necklace, Warp 2 silver n/a $22.50 $50.00 20 $1,000.00 5 $113 $250 9 $203 $450 2 $45 $100 4 $90 $200 3 $68 $150 3 $68 $150 5 $113 $250 3 $68 $150 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 20 $450 $1,000
SPRING Jewelry Molly M Designs 10 earring, Warp 2 silver n/a $22.50 $50.00 15 $750.00 5 $113 $250 7 $152 $338 2 $34 $75 3 $68 $150 2 $51 $113 2 $51 $113 4 $84 $188 2 $51 $113 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 15 $338 $750
SPRING Jewelry Molly M Designs 11 necklace, Metal Pentahedron gold n/a $27.00 $60.00 15 $900.00 5 $135 $300 7 $182 $405 2 $41 $90 3 $81 $180 2 $61 $135 2 $61 $135 4 $101 $225 2 $61 $135 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 15 $405 $900
SPRING Jewelry Molly M Designs 12 necklace, Gold plated brass gold n/a $45.90 $102.00 15 $1,530.00 5 $230 $510 7 $310 $689 2 $69 $153 3 $138 $306 2 $103 $230 2 $103 $230 4 $172 $383 2 $103 $230 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 15 $689 $1,530
SPRING Jewelry Molly M Designs 13 necklace, Elliptiod bronze, copper, silver n/a $27.00 $60.00 25 $1,500.00 5 $135 $300 11 $304 $675 3 $68 $150 5 $135 $300 4 $101 $225 4 $101 $225 6 $169 $375 4 $101 $225 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 25 $675 $1,500
SPRING Jewelry Molly M Designs 14 necklace, Birch Black and Rose Gold n/a $27.00 $60.00 25 $1,500.00 5 $135 $300 11 $304 $675 3 $68 $150 5 $135 $300 4 $101 $225 4 $101 $225 6 $169 $375 4 $101 $225 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 25 $675 $1,500
SPRING Jewelry Molly M Designs 15 ring, bronze sunburst gold n/a $18.90 $42.00 25 $1,050.00 5 $95 $210 11 $213 $473 3 $47 $105 5 $95 $210 4 $71 $158 4 $71 $158 6 $118 $263 4 $71 $158 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 25 $473 $1,050
SPRING Jewelry Molly M Designs 16 earring, sterling silver or bronze gold n/a $18.00 $40.00 25 $1,000.00 5 $90 $200 11 $203 $450 3 $45 $100 5 $90 $200 4 $68 $150 4 $68 $150 6 $113 $250 4 $68 $150 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 25 $450 $1,000
SPRING Jewelry Molly M Designs 17 necklace, birch, leather, sliver chain pink, blue, brown n/a $18.00 $40.00 25 $1,000.00 5 $90 $200 11 $203 $450 3 $45 $100 5 $90 $200 4 $68 $150 4 $68 $150 6 $113 $250 4 $68 $150 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 25 $450 $1,000
FALL Jewelry LeChaim 18 earring, orchid flower gold and green n/a $11.25 $25.00 15 $375.00 5 $56 $125 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 2 $25 $56 3 $34 $75 3 $34 $75 3 $34 $75 6 $68 $150 2 $25 $56 20 $219 $488
FALL Jewelry LeChaim 19 earring, oak leaf gold n/a $11.25 $25.00 15 $375.00 5 $56 $125 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 2 $25 $56 3 $34 $75 3 $34 $75 3 $34 $75 6 $68 $150 2 $25 $56 20 $219 $488
FALL Jewelry LeChaim 20 earring, circle gold n/a $11.25 $25.00 15 $375.00 5 $56 $125 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 2 $25 $56 3 $34 $75 3 $34 $75 3 $34 $75 6 $68 $150 2 $25 $56 20 $219 $488
FALL Jewelry LeChaim 21 earring, bees gold and orange n/a $11.25 $25.00 15 $375.00 5 $56 $125 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 2 $25 $56 2 $17 $38 2 $25 $56 3 $34 $75 4 $42 $94 2 $25 $56 15 $169 $375
SPRING Jewelry LDVC 22 ring, underwood lock bronze steel n/a $90.00 $200.00 15 $3,000.00 5 $450 $1,000 7 $608 $1,350 2 $135 $300 3 $270 $600 2 $203 $450 2 $203 $450 4 $338 $750 2 $203 $450 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 15 $1,350 $3,000
SPRING Jewelry LDVC 23 ring, underwood both sides raw brass n/a $90.00 $200.00 10 $2,000.00 5 $450 $1,000 5 $405 $900 1 $90 $200 2 $180 $400 2 $135 $300 2 $135 $300 3 $225 $500 2 $135 $300 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 10 $900 $2,000
SPRING Jewelry LDVC 24 ring, underwood both sides nickel n/a $90.00 $200.00 10 $2,000.00 5 $450 $1,000 5 $405 $900 1 $90 $200 2 $180 $400 2 $135 $300 2 $135 $300 3 $225 $500 2 $135 $300 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 10 $900 $2,000
SPRING Jewelry Omde 'Onne 30 necklace blue and gold $18.00 $40.00 25 $1,000.00 5 $90 $200 11 $203 $450 3 $45 $100 5 $90 $200 4 $68 $150 4 $68 $150 6 $113 $250 4 $68 $150 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 25 $450 $1,000
SPRING Jewelry Omde 'Onne 31 necklace green and gold $18.00 $40.00 20 $800.00 5 $90 $200 9 $162 $360 2 $36 $80 4 $72 $160 3 $54 $120 3 $54 $120 5 $90 $200 3 $54 $120 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 20 $360 $800
FALL Jewelry Paramithi 32 bracelet, architectual cutout german silver or brass $18.00 $40.00 20 $800.00 5 $90 $200 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 3 $54 $120 3 $54 $120 4 $72 $160 5 $90 $200 5 $90 $200 3 $54 $120 23 $414 $920
FALL Jewelry Paramithi 33 bracelet, assymetrical brass cuff brass $18.00 $40.00 20 $800.00 5 $90 $200 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 3 $54 $120 3 $54 $120 4 $72 $160 5 $90 $200 5 $90 $200 3 $54 $120 23 $414 $920
FALL Jewelry Paramithi 34 earring, chandelier brass $18.00 $40.00 20 $800.00 5 $90 $200 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 3 $54 $120 3 $54 $120 4 $72 $160 5 $90 $200 5 $90 $200 3 $54 $120 23 $414 $920
FALL Jewelry Paramithi 35 bracelet, tattoo brass cuff brass $18.00 $40.00 20 $800.00 5 $90 $200 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 3 $54 $120 3 $54 $120 4 $72 $160 5 $90 $200 5 $90 $200 3 $54 $120 23 $414 $920
FALL Jewelry Paramithi 36 ring, paramithi brass $18.00 $40.00 25 $1,000.00 5 $90 $200 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 4 $68 $150 3 $45 $100 5 $90 $200 5 $90 $200 5 $90 $200 4 $68 $150 25 $450 $1,000
FALL Jewelry Paramithi 37 earring, chandelier brass $18.00 $40.00 30 $1,200.00 5 $90 $200 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 5 $81 $180 3 $54 $120 5 $90 $200 5 $90 $200 5 $90 $200 5 $81 $180 27 $486 $1,080
FALL Jewelry Paramithi 38 ring, meditation silver or bras $18.00 $40.00 25 $1,000.00 5 $90 $200 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 4 $68 $150 3 $45 $100 5 $90 $200 5 $90 $200 5 $90 $200 4 $68 $150 25 $450 $1,000
FALL Footwear Liebling Shoe 40 Boot, ankle, leather dark blue 36-40 $108.00 $240.00 10 $2,400.00 5 $540 $1,200 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 2 $216 $480 2 $216 $480 2 $216 $480 2 $216 $480 2 $216 $480 2 $162 $360 12 $1,242 $2,760
FALL Footwear Liebling Shoe 41 Boot, ankle, leather black 35-41 $65.70 $146.00 10 $1,460.00 5 $329 $730 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 2 $131 $292 2 $131 $292 2 $131 $292 2 $131 $292 2 $131 $292 2 $99 $219 12 $756 $1,679
SPRING Footwear Liebling Shoe 42 Heel, leather yellow 36-40 $62.10 $138.00 12 $1,656.00 5 $311 $690 5 $335 $745 1 $75 $166 2 $149 $331 2 $112 $248 2 $112 $248 3 $186 $414 2 $112 $248 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 12 $745 $1,656
FALL Footwear Liebling Shoe 43 Boot, leather brown 36-41 $78.75 $175.00 11 $1,925.00 5 $394 $875 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 2 $158 $350 2 $158 $350 2 $158 $350 2 $158 $350 3 $236 $525 2 $130 $289 13 $996 $2,214
SPRING Footwear Bali Elf 44 wedge black, tan emerald 6,7,8,9,10 $72.00 $160.00 12 $1,920.00 5 $360 $800 5 $389 $864 1 $86 $192 2 $173 $384 2 $130 $288 2 $130 $288 3 $216 $480 2 $130 $288 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 12 $864 $1,920
SPRING Footwear Bali Elf 45 flat light brown 6,7,8,9,10 $63.00 $140.00 12 $1,680.00 5 $315 $700 5 $340 $756 1 $76 $168 2 $151 $336 2 $113 $252 2 $113 $252 3 $189 $420 2 $113 $252 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 12 $756 $1,680
SPRING Footwear Bali Elf 46 sandal dark brown 6,7,8,9,10 $49.50 $110.00 12 $1,320.00 5 $248 $550 5 $267 $594 1 $59 $132 2 $119 $264 2 $89 $198 2 $89 $198 3 $149 $330 2 $89 $198 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 12 $594 $1,320
SPRING Footwear Bali Elf 47 Heel, leather nude, black 6,7,8,9,10 $58.50 $130.00 12 $1,560.00 5 $293 $650 5 $316 $702 1 $70 $156 2 $140 $312 2 $105 $234 2 $105 $234 3 $176 $390 2 $105 $234 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 12 $702 $1,560
FALL Footwear Jacob Birge Vision 48 Ankle Boot, leather, patent leather red, black and gray 7,8,9,10 $85.50 $190.00 12 $2,280.00 5 $428 $950 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 2 $171 $380 3 $257 $570 2 $171 $380 2 $171 $380 3 $257 $570 2 $154 $342 14 $1,180 $2,622
FALL Footwear Jacob Birge Vision 49 Ankle Boot, leather, patent leather red, black and gray 7,8,9,10 $85.50 $190.00 12 $2,280.00 5 $428 $950 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 2 $171 $380 3 $257 $570 2 $171 $380 2 $171 $380 3 $257 $570 2 $154 $342 14 $1,180 $2,622
FALL Bags Cocoonobags 50 Long Bogi Bag, vegan leather tan, black $27.00 $60.00 15 $900.00 5 $135 $300 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 2 $61 $135 2 $41 $90 2 $61 $135 3 $81 $180 3 $81 $180 2 $61 $135 14 $385 $855
SPRING Bags Cocoonobags 51 Bucket Bag, vegan leather beige, burgandy $24.75 $55.00 15 $825.00 5 $124 $275 7 $167 $371 2 $37 $83 3 $74 $165 2 $56 $124 2 $56 $124 4 $93 $206 2 $56 $124 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 15 $371 $825
SPRING Bags Cocoonobags 52 clutch bag,vegan leather burgandy, cream $14.85 $33.00 15 $495.00 5 $74 $165 7 $100 $223 2 $22 $50 3 $45 $99 2 $33 $74 2 $33 $74 4 $56 $124 2 $33 $74 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 15 $223 $495
FALL Bags Two Fold Concepts 55 backpack, tetra inverted, sheep leather brown $162.00 $360.00 15 $5,400.00 5 $810 $1,800 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 2 $365 $810 1 $162 $360 1 $162 $360 1 $162 $360 1 $162 $360 2 $365 $810 9 $1,377 $3,060
FALL Bags Two Fold Concepts 56 backpack, tetra inverted, sheep leather yellow $162.00 $360.00 15 $5,400.00 5 $810 $1,800 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 2 $365 $810 1 $162 $360 1 $162 $360 1 $162 $360 1 $162 $360 2 $365 $810 9 $1,377 $3,060
SPRING Bags Matter Matters 57 shoulder bag, pythagorus bag light blue $168.75 $375.00 15 $5,625.00 5 $844 $1,875 7 $1,139 $2,531 2 $253 $563 3 $506 $1,125 2 $380 $844 2 $380 $844 4 $633 $1,406 2 $380 $844 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 15 $2,531 $5,625
SPRING Bags Matter Matters 58 bucket bag, goat leather brown $179.10 $398.00 15 $5,970.00 5 $896 $1,990 7 $1,209 $2,687 2 $269 $597 3 $537 $1,194 2 $403 $896 2 $403 $896 4 $672 $1,493 2 $403 $896 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 15 $2,687 $5,970
FALL Footwear Local Designer 59 flats white 6-10, 1/2 sz $36.00 $80.00 20 $1,600.00 5 $180 $400 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 4 $144 $320 4 $144 $320 4 $144 $320 4 $144 $320 4 $144 $320 3 $108 $240 23 $828 $1,840
FALL Footwear Local Designer 60 flats black 6-10, 1/2sz $40.50 $90.00 20 $1,800.00 5 $203 $450 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 4 $162 $360 4 $162 $360 4 $162 $360 4 $162 $360 4 $162 $360 3 $122 $270 23 $932 $2,070
FALL Footwear Local Designer 61 heels blue 6-10 1/2 sz $29.70 $66.00 20 $1,320.00 5 $149 $330 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 4 $119 $264 4 $119 $264 4 $119 $264 4 $119 $264 4 $119 $264 3 $89 $198 23 $683 $1,518
FALL Footwear Local Designer 62 heels yellow 6-10, 1/2 sz $54.00 $120.00 20 $2,400.00 5 $270 $600 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 4 $216 $480 4 $216 $480 4 $216 $480 4 $216 $480 4 $216 $480 3 $162 $360 23 $1,242 $2,760
FALL Footwear Local Designer 63 boots brown 6-10, 1/2 sz $90.00 $200.00 20 $4,000.00 5 $450 $1,000 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 4 $360 $800 4 $360 $800 4 $360 $800 4 $360 $800 4 $360 $800 3 $270 $600 23 $2,070 $4,600
FALL Footwear Local Designer 64 boots black 6-10, 1/2 sz $54.00 $120.00 20 $2,400.00 5 $270 $600 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 4 $216 $480 4 $216 $480 4 $216 $480 4 $216 $480 4 $216 $480 3 $162 $360 23 $1,242 $2,760
FALL Footwear Local Designer 65 sneakers white 6-10, 1/2 sz $44.55 $99.00 20 $1,980.00 5 $223 $495 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 4 $178 $396 4 $178 $396 4 $178 $396 4 $178 $396 4 $178 $396 3 $134 $297 23 $1,025 $2,277
FALL Footwear Local Designer 66 sneakers black 6-10, 1/2 sz $30.60 $68.00 20 $1,360.00 5 $153 $340 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 4 $122 $272 4 $122 $272 4 $122 $272 4 $122 $272 4 $122 $272 3 $92 $204 23 $704 $1,564
SPRING Footwear Local Designer 67 sneakers white 6-10, 1/2 sz $35.10 $78.00 25 $1,950.00 5 $176 $390 11 $395 $878 3 $88 $195 5 $176 $390 4 $132 $293 4 $132 $293 6 $219 $488 4 $132 $293 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 25 $878 $1,950
SPRING Footwear Local Designer 68 wedge red 6-10, 1/2 sz $29.25 $65.00 20 $1,300.00 5 $146 $325 9 $263 $585 2 $59 $130 4 $117 $260 3 $88 $195 3 $88 $195 5 $146 $325 3 $88 $195 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 20 $585 $1,300
SPRING Footwear Local Designer 69 heels blue 6-10, 1/2 sz $24.75 $55.00 25 $1,375.00 5 $124 $275 11 $278 $619 3 $62 $138 5 $124 $275 4 $93 $206 4 $93 $206 6 $155 $344 4 $93 $206 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 25 $619 $1,375
SPRING Footwear Local Designer 70 heels violet 6-10, 1/2 sz $20.25 $45.00 15 $675.00 5 $101 $225 7 $137 $304 2 $30 $68 3 $61 $135 2 $46 $101 2 $46 $101 4 $76 $169 2 $46 $101 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 15 $304 $675
SPRING Footwear Local Designer 71 sandal orange 6-10, 1/2 sz $15.30 $34.00 20 $680.00 5 $77 $170 9 $138 $306 2 $31 $68 4 $61 $136 3 $46 $102 3 $46 $102 5 $77 $170 3 $46 $102 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 20 $306 $680
SPRING Footwear Local Designer 72 sandal green 6-10, 1/2 sz $24.75 $55.00 20 $1,100.00 5 $124 $275 9 $223 $495 2 $50 $110 4 $99 $220 3 $74 $165 3 $74 $165 5 $124 $275 3 $74 $165 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 20 $495 $1,100
SPRING Footwear Local Designer 73 boots black, brown 6-10, 1/2 sz $40.50 $90.00 20 $1,800.00 5 $203 $275 9 $365 $810 2 $81 $180 4 $162 $360 3 $122 $270 3 $122 $270 5 $203 $450 3 $122 $270 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 20 $810 $1,800
• Profits & Losses
• The largest costs to Autumn Story will be in Inventory ($48,214) and Wages ($20,400). Next greatest expenses are in marketing ($7,135), rent ($4,800), and credit card fees($2,779). Fixed expenses are at $32,000. Variable expenses are at around $11,000. Shrinkage is at 1.1% or at $1,054. Travel expenses are mainly to the post office, fashion events and trade shows. Travel is estimated to be at $1,350.
206
Feb-Yr1 Mar-Yr1 Apr-Yr1 May-Yr1 Jun-Yr1 Jul-Yr1 Aug-Yr1 Sep-Yr1 Oct-Yr1 Nov-Yr1 Dec-Yr1 Jan-Yr1 Yr1 Total %/Sls
Net Sales $4,896 $9,792 $7,344 $7,344 $12,240 $7,344 $8,194 $7,507 $7,630 $7,854 $8,653 $7,021 $95,819 100.0%
COGS $2,203 $5,508 $3,305 $3,305 $5,508 $4,131 $3,687 $3,885 $3,434 $4,418 $5,062 $3,159 $47,605 49.7%
Merchandise GM$ $2,693 $4,284 $4,039 $4,039 $6,732 $3,213 $4,507 $3,622 $4,197 $3,436 $3,591 $3,861 $48,214 50.3%
Research & Development $0 0.0%
Merch. GM w/ R&D $2,693 $4,284 $4,039 $4,039 $6,732 $3,213 $4,507 $3,622 $4,197 $3,436 $3,591 $3,861 $48,214 50.3%
Wages $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $20,400 21.3%
Commissions $0 0.0%
Rent $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $4,800 5.0%
Marketing Expense $1,585 $285 $85 $1,085 $60 $1,050 $285 $1,060 $85 $410 $1,085 $60 $7,135 7.4%
Travel expense $100 $250 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $1,350 1.4%
Health Insurance $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $3,000 3.1%
Insurance $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $1,440 1.5%
Accounting/Books $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $1,440 1.5%
Banking $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $240 0.3%
Interest Expense $40 $40 $39 $38 $38 $37 $36 $36 $35 $34 $34 $33 $441 0.5%
Depreciation $37 $37 $37 $37 $37 $37 $37 $37 $37 $37 $37 $37 $443 0.5%
Utilities & Security $0 0.0%
Telephone $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $840 0.9%
Supplies $55 $55 $55 $55 $55 $55 $55 $55 $55 $55 $55 $55 $660 0.7%
Misc. Repairs et al $0 0.0%
Credit Card Transaction Fee $142 $284 $213 $213 $355 $213 $238 $218 $221 $228 $251 $204 $2,779 2.9%
Shrinkage $54 $108 $81 $81 $135 $81 $90 $83 $84 $86 $95 $77 $1,054 1.1%
Total Expense $4,693 $3,738 $3,290 $4,289 $3,459 $4,253 $3,521 $4,268 $3,297 $3,630 $4,337 $3,246 $46,022 48.0%
Profit/Loss -$2,000 $546 $749 -$250 $3,273 -$1,040 $986 -$646 $899 -$194 -$746 $616 $2,192 2.3%
Credit Card Trans Fee rate 3%
Fixed Expenses $2,697 $2,697 $2,697 $2,697 $2,697 $2,697 $2,697 $2,697 $2,697 $2,697 $2,697 $2,697 $32,363 33.8%
Variable Expenses $1,842 $684 $412 $1,411 $528 $1,375 $634 $1,388 $416 $747 $1,445 $372 $11,255 11.7%
Total Expenses $4,539 $3,381 $3,109 $4,108 $3,225 $4,072 $3,331 $4,085 $3,113 $3,444 $4,142 $3,069 $43,618 45.5%
Operating Margin % -68.6% 21.1% 23.0% -1.7% 52.1% -26.7% 26.1% -12.8% 25.8% -0.2% -15.3% 20.5% 54.5%
BreakEven$ Volume -$6,620 $16,032 $13,499 -$239,334 $6,189 -$15,233 $12,768 -$31,927 $12,060 -$1,489,116 -$27,007 $14,945 -$1,733,743
BreakEven Sales per day -$221 $534 $450 -$7,978 $206 -$508 $426 -$1,064 $402 -$49,637 -$900 $498 -$57,791
BreakEven Sales per hour -$28 $67 $56 -$997 $26 -$63 $53 -$133 $50 -$6,205 -$113 $62 -$7,224 207
Sales Quarter Years 1 -3
208
year one GM% 49.6% shrink % 2.0%
IMU% 55.0%
year 2 growth 6.0%
year 3 growth 9.0%
Jan-Yr0 Feb-Yr1 Mar-Yr1 Apr-Yr1 May-Yr1 Jun-Yr1 Jul-Yr Aug-Yr1 Sep-Yr1 Oct-Yr1 Nov-Yr1 Dec-Yr1 Jan-Yr1 Q1-Yr1 Q2-Yr1 Q3-Yr1 Q4-Yr1 Yr1 Total
BOM $22,032 $24,481 $26,929 $26,929 $27,778 $23,045 $23,331 $22,991 $24,137 $23,528 $20,863 $22,590 $22,032 $26,929 $23,331 $23,528
Net Sales $4,896 $9,792 $7,344 $7,344 $12,240 $7,344.2 $8,194.0 $7,506.5 $7,630.3 $7,854.0 $8,652.8 $7,020.8 $22,032 $26,929 $23,331 $23,528 $95,819
COGS 2,203$ 5,508$ 3,305$ 3,966$ 5,508$ 4,131$ 3,687$ 3,885$ 3,434$ 4,418$ 5,062$ 3,159$ $11,016 $13,605 $11,006 $12,639 $48,266
GM$ $2,693 $4,284 $4,039 $3,378 $6,732 $3,213 $4,507 $3,622 $4,197 $3,436 $3,591 $3,861 $11,016 $13,324 $12,325 $10,888 $47,553
GM% 55.0% 43.8% 55.0% 46.0% 55.0% 43.8% 55.0% 48.3% 55.0% 43.8% 41.5% 55.0% 50.0% 49.5% 52.8% 46.3% 49.6%
MD$ -$ 2,448.05$ -$ 1,468.83$ -$ 1,836.04$ -$ 1,125.98$ -$ 1,963.50$ 2,595.83$ -$ $2,448 $3,305 $1,126 $4,559 $11,438
MD% 25.0% 20.0% 25.0% 15.0% 25.0% 30.0% 11.1% 12.3% 4.8% 19.4% 11.9%
Purchases -Retail $22,032 $7,442 $14,884 $7,491 $9,810 $7,751 $9,613 $8,018 $9,929 $7,173 $7,310 $13,149 $7,925 $51,850 $27,174 $25,120 $28,384 $132,528
Purchases -Cost $9,915 $4,020 $6,962 $4,212 $4,576 $4,019 $4,524 $4,508 $5,764 $3,243 $3,502 $7,361 $3,580 $25,108 $13,119 $13,515 $14,444 $66,186
Shrinkage $98 $196 $147 $147 $245 $147 $164 $150 $153 $157 $173 $140
EOM $22,032 $24,481 $26,929 $26,929 $27,778 $23,045 $23,331 $22,991 $24,137 $23,528 $20,863 $22,590 $23,354 $26,929 $23,331 $23,528 $23,354
Avg Stk $23,256 $25,705 $26,929 $27,353 $25,412 $23,188 $23,161 $23,564 $23,832 $22,195 $21,727 $22,972 $25,093 $25,271 $23,497 $22,584 $23,835
Stk:Sls 4.5 2.5 3.7 3.7 2.3 3.1 2.8 3.1 3.2 3.0 2.4 3.2
Turn 0.9 1.1 1.0 1.0 4.02
Feb-Yr2 Mar-Yr2 Apr-Yr2 May-Yr2 Jun-Yr2 Jul-Yr2 Aug-Yr2 Sep-Yr2 Oct-Yr2 Nov-Yr2 Dec-Yr2 Jan-Yr2 Q1-Yr2 Q2-Yr2 Q3-Yr2 Q4-Yr2 Yr2 Total
BOM $23,354 $22,057 $22,057 $24,652 $25,102 $20,449 $20,687 $20,208 $20,999 $21,218 $19,442 $18,756 $23,354 $24,652 $20,687 $21,218
Net Sales $5,190 $10,380 $7,785 $7,785 $12,975 $7,785 $8,686 $7,957 $8,088 $8,325 $9,172 $7,442 $23,354 $28,544 $24,731 $24,939 $101,568
COGS 2,335$ 5,839$ 3,503$ 4,204$ 5,839$ 4,379$ 3,909$ 4,118$ 3,640$ 4,683$ 5,366$ 3,349$ $11,677 $14,421 $11,666 $13,397 $51,162
GM$ $2,854 $4,541 $4,282 $3,581 $7,136 $3,406 $4,777 $3,839 $4,448 $3,642 $3,806 $4,093 $11,677 $14,123 $13,065 $11,542 $50,407
GM% 55.0% 43.8% 55.0% 46.0% 55.0% 43.8% 55.0% 48.3% 55.0% 43.8% 41.5% 55.0% 50.0% 49.5% 52.8% 46.3% 49.6%
MD$ -$ 2,594.93$ -$ 1,556.96$ -$ 1,946.20$ -$ 1,193.53$ -$ 2,081.31$ 2,751.57$ -$ $2,595 $3,503 $1,194 $4,833 $12,125
MD% 25.0% 20.0% 25.0% 15.0% 25.0% 30.0% 11% 12% 4.8% 19.4% 11.9%
Purchases -Retail $3,996 $13,182 $10,535 $9,948 $8,581 $10,124 $8,380 $10,101 $8,469 $8,797 $11,420 $10,049 $27,714 $28,653 $26,950 $30,266 $113,583
Purchases -Cost $2,198 $7,250 $5,794 $5,471 $4,719 $5,568 $4,609 $5,556 $4,658 $4,839 $6,281 $5,527 $15,243 $15,759 $14,823 $16,646 $62,471
Shrinkage $104 $208 $156 $156 $259 $156 $174 $159 $162 $167 $183 $149
EOM $22,057 $22,057 $24,652 $25,102 $20,449 $20,687 $20,208 $20,999 $21,218 $19,442 $18,756 $21,214 $24,652 $20,687 $21,218 $21,214
Avg Stk $22,706 $22,057 $23,354 $24,877 $22,776 $20,568 $20,447 $20,603 $21,109 $20,330 $19,099 $19,985 $23,030 $22,722 $20,778 $20,158 $22,225
Stk:Sls 4.5 2.1 2.8 3.2 1.9 2.6 2.4 2.5 2.6 2.5 2.1 2.5
Turn 1.0 1.3 1.2 1.2 4.57
Feb-Yr3 Mar-Yr3 Apr-Yr3 May-Yr3 Jun-Yr3 Jul-Yr3 Aug-Yr3 Sep-Yr3 Oct-Yr3 Nov-Yr3 Dec-Yr3 Jan-Yr3 Q1-Yr3 Q2-Yr3 Q3-Yr3 Q4-Yr3 Yr3 Total
BOM $21,214 $19,799 $16,971 $22,628 $22,628 $17,953 $18,140 $17,489 $17,891 $19,072 $18,109 $13,769 $21,214 $22,628 $18,140 $19,072
Net Sales $5,657 $11,314 $8,485 $8,485 $14,142 $8,485 $9,467 $8,673 $8,816 $9,075 $9,997 $8,112 $25,456 $31,113 $26,956 $27,184 $110,710
COGS 2,546$ 6,364$ 3,818$ 4,582$ 6,364$ 4,773$ 4,260$ 4,488$ 3,967$ 5,104$ 5,848$ 3,650$ $12,728 $15,719 $12,716 $14,603 $55,766
GM$ $3,111 $4,950 $4,667 $3,903 $7,778 $3,712 $5,207 $4,185 $4,849 $3,970 $4,149 $4,461 $12,728 $15,394 $14,241 $12,580 $54,943
GM% 55.0% 43.8% 55.0% 46.0% 55.0% 43.8% 55.0% 48.3% 55.0% 43.8% 41.5% 55.0% 50.0% 49.5% 52.8% 46.3% 49.6%
MD$ -$ 2,828.48$ -$ 1,697.09$ -$ 2,121.36$ -$ 1,300.95$ -$ 2,268.63$ 2,999.22$ -$ $2,828 $3,818 $1,301 $5,268 $13,216
MD% 25.0% 20.0% 25.0% 15.0% 25.0% 30.0% $0 $0 4.8% 19.4% 11.9%
Purchases -Retail $4,356 $11,540 $14,312 $10,352 $9,750 $10,964 $9,005 $10,549 $10,174 $10,562 $8,856 $11,476 $30,208 $31,066 $29,728 $30,894 $121,897
Purchases -Cost $2,396 $6,347 $7,872 $5,694 $5,363 $6,030 $4,953 $5,802 $5,596 $5,809 $4,871 $6,312 $16,614 $17,087 $16,350 $16,992 $67,043
Shrinkage $113 $226 $170 $170 $283 $170 $189 $173 $176 $181 $200 $162
EOM $19,799 $16,971 $22,628 $22,628 $17,953 $18,140 $17,489 $17,891 $19,072 $18,109 $13,769 $16,971 $22,628 $18,140 $19,072 $16,971
Avg Stk $20,506 $18,385 $19,799 $22,628 $20,290 $18,047 $17,815 $17,690 $18,481 $18,591 $15,939 $15,370 $20,153 $20,337 $18,148 $16,980 $19,605
Stk:Sls 3.8 1.8 2.0 2.7 1.6 2.1 1.9 2.0 2.0 2.1 1.8 1.7
Turn 1.3 1.5 1.5 1.6 5.65
209
Startup Capital Spending Plan and Monthly
Depreciation Expense
210
year one GM% 49.6% shrink % 2.0%
IMU% 55.0%
year 2 growth 6.0%
year 3 growth 9.0%
Jan-Yr0 Feb-Yr1 Mar-Yr1 Apr-Yr1 May-Yr1 Jun-Yr1 Jul-Yr Aug-Yr1 Sep-Yr1 Oct-Yr1 Nov-Yr1 Dec-Yr1 Jan-Yr1 Q1-Yr1 Q2-Yr1 Q3-Yr1 Q4-Yr1 Yr1 Total
BOM $22,032 $24,481 $26,929 $26,929 $27,778 $23,045 $23,331 $22,991 $24,137 $23,528 $20,863 $22,590 $22,032 $26,929 $23,331 $23,528
Net Sales $4,896 $9,792 $7,344 $7,344 $12,240 $7,344.2 $8,194.0 $7,506.5 $7,630.3 $7,854.0 $8,652.8 $7,020.8 $22,032 $26,929 $23,331 $23,528 $95,819
COGS $ 2,203 $ 5,508 $ 3,305 $ 3,966 $ 5,508 $ 4,131 $ 3,687 $ 3,885 $ 3,434 $ 4,418 $ 5,062 $ 3,159 $11,016 $13,605 $11,006 $12,639 $48,266
GM$ $2,693 $4,284 $4,039 $3,378 $6,732 $3,213 $4,507 $3,622 $4,197 $3,436 $3,591 $3,861 $11,016 $13,324 $12,325 $10,888 $47,553
GM% 55.0% 43.8% 55.0% 46.0% 55.0% 43.8% 55.0% 48.3% 55.0% 43.8% 41.5% 55.0% 50.0% 49.5% 52.8% 46.3% 49.6%
MD$ $ - $ 2,448.05 $ - $ 1,468.83 $ - $ 1,836.04 $ - $ 1,125.98 $ - $ 1,963.50 $ 2,595.83 $ - $2,448 $3,305 $1,126 $4,559 $11,438
MD% 25.0% 20.0% 25.0% 15.0% 25.0% 30.0% 11.1% 12.3% 4.8% 19.4% 11.9%
Purchases -Retail $22,032 $7,442 $14,884 $7,491 $9,810 $7,751 $9,613 $8,018 $9,929 $7,173 $7,310 $13,149 $7,925 $51,850 $27,174 $25,120 $28,384 $132,528
Purchases -Cost $9,915 $4,020 $6,962 $4,212 $4,576 $4,019 $4,524 $4,508 $5,764 $3,243 $3,502 $7,361 $3,580 $25,108 $13,119 $13,515 $14,444 $66,186
Shrinkage $98 $196 $147 $147 $245 $147 $164 $150 $153 $157 $173 $140
EOM $22,032 $24,481 $26,929 $26,929 $27,778 $23,045 $23,331 $22,991 $24,137 $23,528 $20,863 $22,590 $23,354 $26,929 $23,331 $23,528 $23,354
Avg Stk $23,256 $25,705 $26,929 $27,353 $25,412 $23,188 $23,161 $23,564 $23,832 $22,195 $21,727 $22,972 $25,093 $25,271 $23,497 $22,584 $23,835
Stk:Sls 4.5 2.5 3.7 3.7 2.3 3.1 2.8 3.1 3.2 3.0 2.4 3.2
Turn 0.9 1.1 1.0 1.0 4.02
Feb-Yr2 Mar-Yr2 Apr-Yr2 May-Yr2 Jun-Yr2 Jul-Yr2 Aug-Yr2 Sep-Yr2 Oct-Yr2 Nov-Yr2 Dec-Yr2 Jan-Yr2 Q1-Yr2 Q2-Yr2 Q3-Yr2 Q4-Yr2 Yr2 Total
BOM $23,354 $22,057 $22,057 $24,652 $25,102 $20,449 $20,687 $20,208 $20,999 $21,218 $19,442 $18,756 $23,354 $24,652 $20,687 $21,218
Net Sales $5,190 $10,380 $7,785 $7,785 $12,975 $7,785 $8,686 $7,957 $8,088 $8,325 $9,172 $7,442 $23,354 $28,544 $24,731 $24,939 $101,568
COGS $ 2,335 $ 5,839 $ 3,503 $ 4,204 $ 5,839 $ 4,379 $ 3,909 $ 4,118 $ 3,640 $ 4,683 $ 5,366 $ 3,349 $11,677 $14,421 $11,666 $13,397 $51,162
GM$ $2,854 $4,541 $4,282 $3,581 $7,136 $3,406 $4,777 $3,839 $4,448 $3,642 $3,806 $4,093 $11,677 $14,123 $13,065 $11,542 $50,407
GM% 55.0% 43.8% 55.0% 46.0% 55.0% 43.8% 55.0% 48.3% 55.0% 43.8% 41.5% 55.0% 50.0% 49.5% 52.8% 46.3% 49.6%
MD$ $ - $ 2,594.93 $ - $ 1,556.96 $ - $ 1,946.20 $ - $ 1,193.53 $ - $ 2,081.31 $ 2,751.57 $ - $2,595 $3,503 $1,194 $4,833 $12,125
MD% 25.0% 20.0% 25.0% 15.0% 25.0% 30.0% 11% 12% 4.8% 19.4% 11.9%
Purchases -Retail $3,996 $13,182 $10,535 $9,948 $8,581 $10,124 $8,380 $10,101 $8,469 $8,797 $11,420 $10,049 $27,714 $28,653 $26,950 $30,266 $113,583
Purchases -Cost $2,198 $7,250 $5,794 $5,471 $4,719 $5,568 $4,609 $5,556 $4,658 $4,839 $6,281 $5,527 $15,243 $15,759 $14,823 $16,646 $62,471
Shrinkage $104 $208 $156 $156 $259 $156 $174 $159 $162 $167 $183 $149
EOM $22,057 $22,057 $24,652 $25,102 $20,449 $20,687 $20,208 $20,999 $21,218 $19,442 $18,756 $21,214 $24,652 $20,687 $21,218 $21,214
Avg Stk $22,706 $22,057 $23,354 $24,877 $22,776 $20,568 $20,447 $20,603 $21,109 $20,330 $19,099 $19,985 $23,030 $22,722 $20,778 $20,158 $22,225
Stk:Sls 4.5 2.1 2.8 3.2 1.9 2.6 2.4 2.5 2.6 2.5 2.1 2.5
Turn 1.0 1.3 1.2 1.2 4.57
Feb-Yr3 Mar-Yr3 Apr-Yr3 May-Yr3 Jun-Yr3 Jul-Yr3 Aug-Yr3 Sep-Yr3 Oct-Yr3 Nov-Yr3 Dec-Yr3 Jan-Yr3 Q1-Yr3 Q2-Yr3 Q3-Yr3 Q4-Yr3 Yr3 Total
BOM $21,214 $19,799 $16,971 $22,628 $22,628 $17,953 $18,140 $17,489 $17,891 $19,072 $18,109 $13,769 $21,214 $22,628 $18,140 $19,072
Net Sales $5,657 $11,314 $8,485 $8,485 $14,142 $8,485 $9,467 $8,673 $8,816 $9,075 $9,997 $8,112 $25,456 $31,113 $26,956 $27,184 $110,710
COGS $ 2,546 $ 6,364 $ 3,818 $ 4,582 $ 6,364 $ 4,773 $ 4,260 $ 4,488 $ 3,967 $ 5,104 $ 5,848 $ 3,650 $12,728 $15,719 $12,716 $14,603 $55,766
GM$ $3,111 $4,950 $4,667 $3,903 $7,778 $3,712 $5,207 $4,185 $4,849 $3,970 $4,149 $4,461 $12,728 $15,394 $14,241 $12,580 $54,943
GM% 55.0% 43.8% 55.0% 46.0% 55.0% 43.8% 55.0% 48.3% 55.0% 43.8% 41.5% 55.0% 50.0% 49.5% 52.8% 46.3% 49.6%
MD$ $ - $ 2,828.48 $ - $ 1,697.09 $ - $ 2,121.36 $ - $ 1,300.95 $ - $ 2,268.63 $ 2,999.22 $ - $2,828 $3,818 $1,301 $5,268 $13,216
MD% 25.0% 20.0% 25.0% 15.0% 25.0% 30.0% 11.11% 12.27% 4.8% 19.4% 11.9%
Purchases -Retail $4,356 $11,540 $14,312 $10,352 $9,750 $10,964 $9,005 $10,549 $10,174 $10,562 $8,856 $11,476 $30,208 $31,066 $29,728 $30,894 $121,897
Purchases -Cost $2,396 $6,347 $7,872 $5,694 $5,363 $6,030 $4,953 $5,802 $5,596 $5,809 $4,871 $6,312 $16,614 $17,087 $16,350 $16,992 $67,043
Shrinkage $113 $226 $170 $170 $283 $170 $189 $173 $176 $181 $200 $162
EOM $19,799 $16,971 $22,628 $22,628 $17,953 $18,140 $17,489 $17,891 $19,072 $18,109 $13,769 $16,971 $22,628 $18,140 $19,072 $16,971
Avg Stk $20,506 $18,385 $19,799 $22,628 $20,290 $18,047 $17,815 $17,690 $18,481 $18,591 $15,939 $15,370 $20,153 $20,337 $18,148 $16,980 $19,605
Stk:Sls 3.8 1.8 2.0 2.7 1.6 2.1 1.9 2.0 2.0 2.1 1.8 1.7
Turn 1.3 1.5 1.5 1.6 5.65
211
Startup Capital Spending Plan and Monthly Depreciation Expense
212
Jan - Yr 0 Feb - Yr 1 Mar - Yr 1 Apr - Yr 1 May - Yr 1 Jun - Yr 1 Jul - Yr 1 Aug - Yr 1 Sep - Yr 1 Oct - Yr 1 Nov - Yr 1 Dec - Yr 1 Jan - Yr 1 Yr 1
Startup Loan/Personal $$ $44,954
Less: Start-up Capital Expenditures $6,139
Equals: Available Start-up $$ $38,815
Profit or <Loss> (GM$-Expenses) -$2,000 $546 $749 -$250 $3,273 -$1,040 $986 -$646 $899 -$194 -$746 $616 $2,192
Less: Monthly Incr. of Inv ( at Cost) $9,915 $1,102 $1,102 $0 $382 -$2,130 $129 -$153 $516 -$274 -$1,199 $777 $344 $10,509
Less: Shrink and MDs (cost) $54 $1,454 $81 $80,866 $135 $1,091 $90 $702 $84 $1,166 $1,523 $77 $87,323
Plus: Depreciation Expense $37 $37 $37 $37 $37 $37 $37 $37 $37 $37 $37 $37 $443
Less: Principal Payments $225 $225 $225 $225 $225 $225 $225 $225 $225 $225 $225 $225 $2,697
Equals: Monthly Working Cash -$9,915 -$3,344 -$2,198 $481 -$81,687 $5,081 -$2,447 $861 -$2,052 $902 -$350 -$3,234 $7 -$97,894
Equals: Monthly Net Cash $28,900 -$3,344 -$2,198 $481 -$81,687 $5,081 -$2,447 $861 -$2,052 $902 -$350 -$3,234 $7
Cumulative Net Cash $28,900 $25,556 $23,358 $23,839 ($57,848) ($52,767) ($55,214) ($54,353) ($56,405) ($55,503) ($55,853) ($59,086) ($59,080)
213
Cash Flow Years 1-3
214
Year 1 Year 2 Year 3
BOM $22,032 $23,354 $21,214
Sales $95,819 $101,568 $110,710
Purchases $277,942 $113,583 $121,897
EOM $23,354 $21,214 $16,971
Avg Inv $23,835 $22,225 $19,605
Turn 4.02 4.57 5.65
Q1-Yr1 Q2-Yr1 Q3-Yr1 Q4-Yr1 Yr1 Total Q1-Yr2 Q2-Yr2 Q3-Yr2 Q4-Yr2 Yr2 Total Q1-Yr3 Q2-Yr3 Q3-Yr3 Q4-Yr3 Yr3 Total
BOM Inventory $22,032 $26,929 $23,331 $23,528 $23,354 $24,652 $20,687 $21,218 $21,214 $22,628 $18,140 $19,072
Total Net Sales $22,032 $26,929 $23,331 $23,528 $95,819 $23,354 $28,544 $24,731 $24,939 $101,568 $25,456 $31,113 $26,956 $27,184 $110,710
COGS $11,016 $79,041 $11,006 $12,639 $113,702 $11,677 $14,421 $11,666 $13,397 $51,162 $12,728 $15,719 $12,716 $14,603 $55,766
GM$ $11,016 -$52,113 $12,325 $10,888 -$17,883 $11,677 $14,123 $13,065 $11,542 $50,407 $12,728 $15,394 $14,241 $12,580 $54,943
GM% 50.0% -193.5% 52.8% 46.3% -18.7% 50.0% 49.5% 52.8% 46.3% 49.6% 50.0% 49.5% 52.8% 46.3% 49.6%
Purchases -Retail $51,850 $172,588 $25,120 $28,384 $277,942 $27,714 $28,653 $26,950 $30,266 $113,583 $30,208 $31,066 $29,728 $30,894 $121,897
Purchases -Cost $90,545 $93,097 $13,515 $14,444 $211,601 $15,243 $15,759 $14,823 $16,646 $62,471 $16,614 $17,087 $16,350 $16,992 $67,043
EOM Inventory $26,929 $23,331 $23,528 $23,354 $24,652 $20,687 $21,218 $21,214 $22,628 $18,140 $19,072 $16,971
BOM/Avg Inventory $25,093 $25,271 $23,497 $22,584 $23,835 $23,030 $22,722 $20,778 $20,158 $22,225 $20,153 $20,337 $18,148 $16,980 $19,605
Turn 0.88 1.07 0.99 1.04 4.02 1.01 1.26 1.19 1.24 4.57 1.26 1.53 1.49 1.60 5.65
215
Loan Repayment Schedule at 3.6%
216
Mo
nth
B
ala
nce o
f Lo
an
Princip
al
Inte
rest
To
tal
Paym
ent
1$13,4
86.0
8$225
40
$
265
$
2$13,2
61.3
1$225
40
$
265
$
3$13,0
36.5
4$225
39
$
264
$
4$12,8
11.7
8$225
38
$
263
$
5$12,5
87.0
1$225
38
$
263
$
6$12,3
62.2
4$225
37
$
262
$
7$12,1
37.4
7$225
36
$
261
$
8$11,9
12.7
0$225
36
$
261
$
9$11,6
87.9
4$225
35
$
260
$
10
$11,4
63.1
7$225
34
$
259
$
11
$11,2
38.4
0$225
34
$
258
$
12
$11,0
13.6
3$225
33
$
258
$
13
$10,7
88.8
6$225
32
$
257
$
14
$10,5
64.1
0$225
32
$
256
$
15
$10,3
39.3
3$225
31
$
256
$
16
$10,1
14.5
6$225
30
$
255
$
17
$9,8
89.7
9$225
30
$
254
$
18
$9,6
65.0
2$225
29
$
254
$
19
$9,4
40.2
6$225
28
$
253
$
20
$9,2
15.4
9$225
28
$
252
$
21
$8,9
90.7
2$225
27
$
252
$
22
$8,7
65.9
5$225
26
$
251
$
23
$8,5
41.1
8$225
26
$
250
$
24
$8,3
16.4
2$225
25
$
250
$
25
$8,0
91.6
5$225
24
$
249
$
26
$7,8
66.8
8$225
24
$
248
$
27
$7,6
42.1
1$225
23
$
248
$
28
$7,4
17.3
4$225
22
$
247
$
29
$7,1
92.5
8$225
22
$
246
$
30
$6,9
67.8
1$225
21
$
246
$
31
$6,7
43.0
4$225
20
$
245
$
32
$6,5
18.2
7$225
20
$
244
$
33
$6,2
93.5
0$225
19
$
244
$
34
$6,0
68.7
4$225
18
$
243
$
35
$5,8
43.9
7$225
18
$
242
$
36
$5,6
19.2
0$225
17
$
242
$
37
$5,3
94.4
3$225
16
$
241
$
38
$5,1
69.6
6$225
16
$
240
$
39
$4,9
44.9
0$225
15
$
240
$
40
$4,7
20.1
3$225
14
$
239
$
41
$4,4
95.3
6$225
13
$
238
$
42
$4,2
70.5
9$225
13
$
238
$
43
$4,0
45.8
2$225
12
$
237
$
44
$3,8
21.0
6$225
11
$
236
$
45
$3,5
96.2
9$225
11
$
236
$
46
$3,3
71.5
2$225
10
$
235
$
47
$3,1
46.7
5$225
9$
234
$
48
$2,9
21.9
8$225
9$
234
$
49
$2,6
97.2
2$225
8$
233
$
50
$2,4
72.4
5$225
7$
232
$
51
$2,2
47.6
8$225
7$
232
$
52
$2,0
22.9
1$225
6$
231
$
53
$1,7
98.1
4$225
5$
230
$
54
$1,5
73.3
8$225
5$
229
$
55
$1,3
48.6
1$225
4$
229
$
56
$1,1
23.8
4$225
3$
228
$
57
$899.0
7$225
3$
227
$
58
$674.3
0$225
2$
227
$
59
$449.5
4$225
1$
226
$
60
$224.7
7$225
-$
-$
217
Marketing Budget
219
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Total
Website $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $ 600.00
Event (Grand Opening) $1,500 $ 1,500
Magazine Print ADS (Indie) $1,000 $1,000 $ 2,000
Magazine Print ADS(Oyster) $1,000 $1,000 $ 2,000
Online searches (Google) $ -
Blogger Affiliate (Wendy's Lookbook) $200 $ 200
Blogger Affiliate (Cupcakes and Cashmere) $200 $ 200
Yahoo Ad Banner (PPC) $25 $25 $25 $25 $ 100
Facebook Ad Banner (PPC) $25 $25 $25 $25 $25 $ 125
Direct Mail $300 $ 300
Email Campaign $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $ 120
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Place holder $ -
Total $ 1,585 $ 285 $ 85 $ 1,085 $ 60 $ 1,060 $ 285 $ 1,060 $ 85 $ 410 $ 1,085 $ 60 $ 7,145
Financial Assumptions
220
Applies to Assumption Rational
Target
Customer
Primary customer is interested in
design and self expression. Secondary
Customer is interested in travel and
culture. This feeds into the premise of
the Autumn Story mission and
values.
Per Mintel, older millennials are more
interested in self expression and
individuality. The new younger
generation of millennials is more
interested in travel and culture than
any other demographic according to
Business Insider.
Pricing
Strategy
for
Merchandi
se
Will have low and medium priced
items mainly.
Younger target markets will have less
disposable income on average.
1st Year
Financial
Start-up
based on
product
sales
Will sell around $100,000 in
inventory first year. This is around
$8,000 a month. Average price per
product is $40. This will mean around
200 items will be sold monthly.
Traffic to e-commerce site is usually at
a 3% conversion rate. Around 6,500
people have to go to the site each month
to be able to sell at that volume.
1St Year
Projected
total profit
& loss
Project a profit of only $2192. Extra initial start-up costs and not
wanting to spend too much on
inventory because knowledge of the
online store is not well known. May
take a while for traffic to be heavier on
the site. When awareness increases, it’s
safer to invest more in inventory.
Contingen
cy Reserve
$6000. Will cover extra or unforeseen expenses
in inventory, or delivery, or rent.
Working
Capital
$12,000. In case more inventory is needed, travel
or any other demands are needed. This
should be enough to handle a large
order of extra inventory or any other
liabilities. 221
Marketing
Plan
$7,500 Marketing should be 10% of sales. This is
at 8% of sales. This is marketing on a
slighter budget, but by using email, seo
tactics, and social media, this marketing
budget can go a long way for an online
store.
Employee
Benefits
Self Employed with no employees the first
year. Wages and health insurance only.
Want to save on costs for a new business that
will have decreased volume in sales.
Computer
System
Maintenance
$1,215 There is only one employee for the business.
This should be enough for the technology costs
of one person.
Insurance Business insurance is at $1,400. Per year.
This is $120 a month.
I will hope to find an excellent business
insurance deal.
Accounting &
Legal Fees
$1,440 per year. Looking to use Quick books, and my own
knowledge and friend’s knowledge. I took
accounting courses and my best friend has so as
well. She is a bookkeeper for a living.
Assortment $48,000. Looking to spend this amount. It’s conservative
and small amount and at a 55% markup, Gross
sales are just under $100,000. This is excusable
for an online business with little overhead. 222
Appendix
• AutobiographyI was born in Brooklyn, New York because of my father who moved to New York to become an actor. However, he ended up working on Wall Street instead. My mother worked as a translator and as a shopping tour guide in the city. I have two older sisters, who were both in high school while I was in elementary school. I lived near a very sleepy neighborhood with a lot of green lawns and very old trees. I attended schools in both Brooklyn and Manhattan. I also took art and music classes at the Brooklyn Museum and at Brooklyn College. I spent a lot of time at parks, the Brooklyn Botanical Garden, museums and especially at the ocean. I frequently went to interesting neighborhoods such as 34th Street, Park Slope, Greenwich Village, and the Upper East Side. I was exposed to very creative styles of clothing and businesses, which was inspirational to me. When I moved to Delaware at 14 years old, I was exposed to new music and cultures and it was very different than what I was used to.
I always wanted my own business since I was very young. I would see products and packaging and very creative marketing and branding which greatly inspired me. I am attracted to a lot of creative endeavors such as writing, music, and art, however, business has always had the greatest draw and interest for me. It was creative entrepreneurship, forming an identity, and branding that was the most appealing to me out of all other creative things. I have a lot of creative artistic ideas and I am really interested in business as well, but to confuse things more I really feel a strong pull towards analytical problem solving. These three things really pulled at me and I had a great deal of difficulty reconciling the three interests because I felt like I had to do all three. Fashion merchandising is great blend of these three interests, and it incorporates all the things that I am interested in. It is a perfect area to implement analytical problem solving, market strategy, trend analysis and forecasting. Fashion can encompass so many different types of businesses and so many kinds of products that are really exciting, so it is a great place to be creative. On the east coast, I met people from California from time to time, and I always thought they were really nice and cool. I think Californians left a better impression on me than people from many others states. Other than that, I felt pulled and drawn to the west coast, and so I decided to apply to schools in California. I am really glad that I chose this University and San Francisco as the new place to continue my school career.
While I was in high school, I participated in writing competitions. I won first Prize in The Delaware News Journal Diversity Essay competition and I was printed in the 21st Century Magazine. I was the only student to get a professional level writing grade from the state English test in my particular English class. I took drafting and business elective courses while in high school and I joined the fashion club and the school newspaper. These experiences as well helped me to gain different viewpoints and skills.
TIME LINESpring 2014
FSH 616 02: MS: DYNAMICS OF FASHION Bacca Da Silva
FSH 650 01: MS: INTRO TO FASHION DESIGN Hannah Norman
GLA 613 01: HISTORY OF 20TH CENTURY FASHION ARTS Linda Matheson
Summer 2014
FSH 651 01: MS: FASHION CONSTRUCTION Kevy DeSantis
GLA 621 01: HISTORY & TECHNIQUES OF CHARACTER ANIMATION Tom Bertino
Fall 2014
FSH 600A 01: MS: FASHION DESIGN Akemi Okamoto
FSH 601A 01: MS: 3D DESIGN 1 Kevy DeSantis
WNM 600 03: MS: DIGITAL APPLICATIONS Emilie Drumm
Spring 2015
FSH 632 01: MS: TREND ANALYSIS & PRODUCT DEVELOPMENT Susannah Breuer
FSH 634 02: MS: TEXTILES & OTHER RAW MATERIALS Matthew Gerring
FSH 637 02: MS: PRODUCT SOURCING AND ASSORTMENT PLANNING Sharon Murphy
GLA 627 01: INDUSTRIAL DESIGN IN A GLOBALIZED WORLD Rafael Davidson
Summer 2015
FSH 629 OL1: MS: INTRODUCTION TO STYLING Flore Morton
GLA 671 02: PROFESSIONAL PRACTICES & COMMUNICATION FOR FASHION Robert Friederich
Fall 2015
FSH 617 OL1: MS: INTRODUCTION TO FASHION JOURNALISM PAUL WILNER
FSH 801 OL5: MS: GROUP DIRECTED STUDY: MARKET RESEARCH Mathew Gerring
FSH 801 OL8: MS: GROUP DIRECTED STUDY: PRODUCT SOURCING & ASSORTMENT PLANNING Sharon Murphy
Spring 2016
FSH 657 OL1: MS: ONLINE RETAILING Leah Kirpalani
FSH 855 OL1: GDS: MARKETING STRATEGY & PLAN Mark Greiz
FSH 858 OL1: GDS: FINANCIAL PLANNING Karen Hook
Summer 2016
FSH 859 OL1: GDS: THESIS WRAPUP Sandra Parenti
Works Cited •
• Works cited
• Hulkower, Billy. "Online Shopping June 2015." Mintel. Mintel, June 2015. Web. Nov. 2015.
• "Watches and Jewelry Opinions regarding Online Shopping." Mintel. Mintel, Sept. 2015. Web. Nov. 2015.
• Hulkower, Billy. "Online Shopping June 2014." Mintel. Mintel, June 2014. Web. Nov. 2015.
• Smith, Diana. "Watches and Jewelry US September 2015." Mintel. Mintel, Sept. 2015. Web. Nov. 20
• Westbrook, Gina. "Eco Warriors Global Green Behaviors and Market Impact." Warc (2015): 2-7. June 2015. Web. Nov. 2015.
• Westbrook, Gina. "THE GLOBAL STRUGGLE FOR WORK-LIFE BALANCE AND ITS IMPACT ON CONSUMER MARKETS." Warc Passport (2015): n. pag. Nov. 2015. Web. Nov. 2015.
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Conclusion
• Autumn Story has aspects that I find very interesting and inspirational. I really favor the idea of promoting and learning about new fashion designs, and sharing business ideas. I find the values of Autumn Story to be very enticing to me as well, such as design, culture, travel and ethical business practices. If I were to pursue a project similar to Autumn Story in real life I would start the magazine first and work on that alone for awhile. After that first step I would proceed to start an online store with a small inventory that will probably focused only on jewelry in the beginning.
• I feel that first gaining industry knowledge from a design focused company will be the best option for me. I like design and to be in that type of environment will help me learn how to run a business on my own. There are many unanswered questions to running a business that an established brand will have perfected and found their rhythm. Learning from experience would be helpful for any future endeavors that I pursue, such as starting a business of my own.