Case study about J.Crew (19th. 10am EST)
DDDlyz
PartI.docxPart I. J Crew
Initial Research
1. Conduct research on the leading fashion retailers which use in-store entertainment to draw customers into their physical stores. Share a brief comparison of the retailers you researched. You should identify at least two for your research.
Many retailers today are competitive not only in terms of product and pricing, but also with other features such as technology or entertainment. Some retailers or brands that were researched, and we thought had a really great way of incorporating entertainment and technology into their competitive advantage include L’oreal, American Apparel and Neiman Marcus. Starting with L’oreal, one thing that they are doing to attract more customers and make the overall experience of shopping not only easier, but fun while also lowering their chances of product returns. L'oreal has incorporated the use of a virtual makeup “try-on app” for customers to use while shopping L'oreal products in retailers. Customers can scan an item and use the app to match the perfect shade for their skin tone, see how an eyeliner or lipstick color would look on them, or test between different products. Very similarly, American Apparel has created an app that allows customers to use an app in store to scan items and bring up reviews and see additional colors and sizes available in the store they are located in. Lastly, Neiman Marcus is bringing one of the most innovative technology to customers. In their new Hudson Yards store, the retailer has installed a 3D virtual mirror for customers to see how clothes would look on them. They also have upgraded fitting rooms experience by using technology that allow customers to requesting new items, different sizes, or help from an employee, all from the push of a button on a screen installed in each fitting room. In different, yet similar ways, all three retailers/brands are achieving new ways to provide an experiential shopping experience for their customers. Neiman Marcus and L’oreal both use virtual reality experiences, and American Apparel and L’oreal both promote the use of their app while shopping in store.
2. Identify a retailer that could benefit from launching an in-store entertainment concept in their physical locations. Explain your choice and elaborate on the entertainment concept you are planning to launch.
The retailer that would benefit off of launching an in-store entertainment concept would be J.Crew. It has been recognized that J.Crew has been struggling over the past few years within their retail stores. This could be a result of consumer’s shopping preferences shifting to eccomerce instead of shopping in malls, leaving traditional retailers like J.Crew, trying to comprehend what is happening to the retail market. The key to brick and mortar retailers staying relevant is to be able to provide an in store experience that the consumer cannot get by just shopping online. Having experiential retail is what will give the consumer the leverage of wanting to shop in the retail location instead of online. With this in mind, we have decided to have J.Crew launch their very own in-store entertainment. The entertainment is going to be centered around the new activewear line that they are launching. Not only will the in-store entertainment attract customers into retail locations, but it will also spark attention around the new collection. The entertainment will be partnerships with local workout studios close to those specific J.Crew locations. This entertainment will only be available to customers who shop in-store, since it is based on location of workout studios. Within this partnership, consumers that purchase merchandise from the activewear collection at J.Crew will receive multiple benefits. These benefits include free workout classes, in-store events with fitness influencers or fitness specialists, and discounted rates on studio memberships. There will be one workout studio at a time that will be having the featured partnership with J.Crew. During that month, customers who purchase from the activewear line will be given the promotion of one free work out class per week for the month, but consumers must wear the J.Crew activewear apparel to participate. Along with the free classes, each studio will offer their own discounted rate off of their memberships. There will be in-store events throughout the month that include the featured studio bringing in a fitness instructor from their studio to share their favorite options from the new activewear collection and tips and tricks for working out. Along with hosting fitness instructors, there will also be J.Crew events hosted by popular fitness influencers. An example of a fitness influencer is Bec Donlan, who has over 56,000 followers on her Instagram page, sweatwithbec. The majority of these fitness influencers having a growing community of fans that are compelled to purchase products if the influencer they are following has them. J.Crew will make these fitness influencers brand ambassadors for the new activewear collection, which will create more exposure for the line and brand. The events would essentially be a meet and greet, where customers can come and meet their favorite influencers. This strategy of using in-store entertainment will create more of a sense of a community within J.Crew for their customers, but also attract new potential customers who are interested in the meet and greet events or fitness.
3. Create a SWOT analysis of your retailer.
See Appendix A for chart.
As you will see from the chart in Appendix A, there is a SWOT analysis that is utilized to view the company’s strengths, weaknesses, opportunities, and threats. The first strength that J.Crew has is a good reputation. J.Crew has always took pride in their reputation of their sustainability initiatives and giving back to the community. They have a section on their website dedicated to “J.Crew in the Community,” which is a list of various local charity events that they participate in. These charity partnerships include Big Brothers Big Sisters, Ronald McDonald House, and National Wildlife Federation. J.Crew has also made strong environmental efforts to reduce waste and improve their supply chain. Another strength of J.Crew is that they have retail locations in many major cities within the United States. J.Crew also is accomodating by providing an online store to all of the US and internationally. An example of a weakness that J.Crew has is that they do have a higher price point. This may discourage certain customers from shopping at their stores. Another weakness associated with price is that customers are more likely to shop at J.Crew when there are discounts. J.Crew is very known for advertising sales and providing discounts, which can be beneficial to the company, but can also bring down the brand’s image as something cheap. Another weakness of J.Crew is that there are a limited about of retail locations internationally. J.Crew tries to make up for this by offering their online store to a large amount of countries. Some opportunities that J.Crew could be involved in include more collaborations, loyalty programs, and investing in more international locations. J.Crew has done collaborations in the past with other brands such as Nike, New Balance, and TImex. J.Crew could look into the opportunity of a collaboration with a celebrity or influencer, this would bring attention to the brand from their customers and the fan bases of these celebrities or influencers. J.Crew already has a loyalty that that does provide their loyal customers with rewards. The program includes every $200 spent, they receive a $5 credit. The rewards could be more creative, since they are the bare minimum of most loyalty programs. J.Crew should also consider the opportunity of opening up more international locations. Being able to purchase from the store online is a great convenience, but it is even better when there is a retail location near by. The following threats for J.Crew include a decrease in brick and mortar stores, competition, and changing fashion trends and preferences. Overall, J.Crew has been struggling financially, and with the decrease of shopping in brick and mortar stores, it has increased the problem. J.Crew has lost a large amount of their sales due to consumers preferring to shop online rather in store. J.Crew’s unique look and merchandise does set them apart from their competition, but all retailers are struggling to set themselves apart when everyone is selling the same styles. Retailers, including J.Crew, are trying to provide the consumer with the merchandise they are looking for, but all of the retailers are starting to blend in with each other by offering similar styles. It is also a threat that the ongoing changes in fashion and trends and consumer preferences makes it hard for retailers to be able to keep up with what styles consumers are looking for.
4. Identify the target market you want to reach. Be careful not to be too broad as all of the parameters below need to apply to that specific market.
Design and Product Development
1. Create Line - Activewear
1. Shorts
2. Jacket
3. Leggings
4. Active tank tops
5. Sport bra
See Appendix B for chart. (NEED SMALL WRITE UP on why we chose these styles and garments)
2. Explain the story behind your curated collection and why it will work at the retailer you have chosen and the entertainment concept you plan to launch.
· MUST be ethical/sustainable
3. Create an inspiration board for your new line. It can be developed digitally and saved as a pdf.
See saved PDF “Moodboard 490 Project”
4. Create a materials story (fabric, fiber, alloy etc.) which should include the colors and specific fabrications that you believe will be important to incorporate.
See saved PDF “490 Fabric Board”
· Sustainability is a MUST for this line.
· Organic natural OR recycled fabrics only
· Low impact dyes - no harsh environmental impacts
· Eco-friendly packaging
· Tencel, trademark name for Lyocell is an eco-friendly fabric good for active wear. It is more absorbent than cotton, softer than silk, and lighter than linen. It provides the most comfortable and functional fabric for activewear clothes that is sustainable and eco-friendly.
· https://www.vyayama.com/pages/fabric-tencel/
· Organic natural fibers - Cotton Works’ Natural Stretch fabric, is 100% cotton engineered to provide stretch and comfort. If we can find a way to make this cotton 100% organic and produced ethically for the environment not only will the new line at J. Crew be as eco-friendly as possible, it will also provide us a cutting edge and innovative competitive advantage. Something that should be marketed as one of the most important aspects of our new line. https://www.cottonworks.com/topics/fabric-technology/performance-technologies/natural-stretch
· Combine with Nanotex “Dry Inside” technology that is now available for 100% cotton fabrics to lessen the effects and uncomfortableness of sweating in workout clothes. Sweating is going to happen, but the use of nanotex will help make it less uncomfortable so users don't notice the sweat and can focus on their workout. https://www.cottonworks.com/topics/fabric-technology/performance-technologies/nanotex-dry-inside/
5. Describe how you would merchandise the collection within the physical store you have selected.
6. How would you communicate the story behind the collection?
It is important to take into consideration how to appropriately communicate your brand and what it stands for to your audience of customers. Making your brand authentic and transparent is what keeps the brand on the mind of the potential customer. We will be able to do this by showing J.Crew’s heritage, the people who are wearing the line, and reinforcing the values of sustainability. In order for J.Crew to be able to reach their target market of millennials, the merchandise being sold needs to be the trends that they are searching for. Athleisure and activewear has become an ongoing trend that retailers are picking up on. While J.Crew has never had an activewear line, it is important that while creating the line to make sure to incorporate the brand image and culture of J.Crew. The main colors we have chosen for the line are red, blue, yellow, white, and black. The colors we have chosen to represent the line are colors that we believe the overall brand of J.Crew. These colors give off of a nautical, All-American feel. We are striving to launch something new for J.Crew, but also keep the key identity of the brand present. Another crucial communicator for showing the story of the brand is behind the influencers and other people wearing the line. The influencers will share on all forms of social media them wearing the collection and their thoughts and opinions on it. We will also have the hashtag on Instagram #JCrewActive, where customers can post their pictures of them wearing the new collection and share what activities they do while wearing the collection. Our main takeaway from expressing our story is immersing the people who are wearing it into the story. The final communication point is showcasing the importance of sustainability within the collection. Sustainability factors on a garment can be the deal breaking point for if a customer is willing to buy garments. With this in mind, we have made it a crucial point to communicate to the customer that J.Crew is taking responsibility to the planet and has chosen to use sustainable fabrics and materials for the new collection.
7. Using EDITED as a tool, determine the price points of your line and provide evidence to support your decision.
· Adidas (Appendix C)
· Lululemon (Appendix D)
Appendix
Appendix A - SWOT Analysis
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Strengths: · Good reputation · Retail locations in major cities · Utilizes multiple sales channels
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Weaknesses: · Higher price points · Customers only shop when provided discounts · Limited international presence |
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Opportunities: · Collaborations · Improve loyalty programs · More international locations |
Threats: · Decrease in business in brick and mortar stores · Competition of other retailers · Changing fashion trends and preferences
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Appendix B - Flats for Activewear Line
Appendix C - Adidas
Appendix D - Lululemon
Appendix E - Under Armour
Bibliography
Cox, L. (2018, May 28). 10 Companies Using Tech To Save Retail Businesses. Retrieved March
27, 2019, from https://disruptionhub.com/technology-retail-highstreet/
Grill-Goodman, J. (2019, March 12). First Look: The Technology Behind Neiman Marcus's New
Retail Experience at New York's Hudson Yards. Retrieved March 12, 2019, from https://risnews.com/first-look-technology-behind-neiman-marcuss-new-retail-experience-new-yorks-hudson-yards
Guide, S. (2019, April 04). 10 Eco-Conscious Athletic Wear Brands To Keep You Moving. Retrieved from https://www.thegoodtrade.com/features/your-comprehensive-guide-to-
ethically-made-athletic-wear-brands
Here Are the Top Fitness Influencers to Guide Your Workout. (2019, February 20). Retrieved from https://izea.com/2019/02/20/top-fitness-influencers/
J.Crew Must Die to Live. (2018, November 19). Retrieved from https://www.businessoffashion.com/articles/news-analysis/j-crew-must-die-to-live
Retail Experience at New York's Hudson Yards. Retrieved March 12, 2019, from https://risnews. com/first-look-technology-behind-neiman-marcuss-new-retail-experience-new-yorks -hudson-yards
Stromberg, K. (2018, April 16). Retail As Entertainment: How Leading Brands Are Captivating Audiences. Retrieved from https://www.forbes.com/sites/forbescommunicationscouncil /2018/04/16/retail-as-entertainment-how-leading-brands-are-captivating-audiences/ #5fa5dfed6867
Vembar, K. (2018, October 17). A timeline of J. Crew's rise and fall. Retrieved from https://www.retaildive.com/news/a-timeline-of-jcrews-rise-and-fall/539599/
