accessorize expansion plan report

N0280922

Sophie Mattacott-Cousins FASH10039

FMB Yr 1

Accessorize

Sec 1.

1:1 Introduc/on 1:2 Methodology

Sec 2.

2:1 brand DNA 2:2 Brand History

2:3 Brand a@ributes 2:4 Monsoon & Accessorize trust 2:5 Brand Vision & objec/ves

Sec 3.

3:1 Product a@ributes 3:2 Range segmenta/on 3:3 Brand posi/oning 3:3:1 Perceptual Map

Sec 4.

4:1 PEST analysis Overview 4:2 UK consumer behaviors 4:3 USA consumer behaviors

4:4 Comparisons of the US & UK Market 4:5 Cultural differences in the US & UK

Sec 5 5:1 US compe/tor Set 5:1:1 Perceptual map

5:2 Accessorize SWOT analysis 5:3 Compe/tor SWOT analysis

5:4 Consumer segmenta/on 5:4:1 Consumer Lifestyle Image

Sec 6

6:1Market Entry 6:2 California

Sec 7

7:1 Seasonal range plan

Sec 8 8:1 Loca/on 8:2 Store

8:3 Adver/sing Channels 8:4 The Campaign

8:5 Summary & Recommenda/ons

Sec 9 9:1 Appendix 9:2 References

Contents

1:2 METHODOLOGY

Research will be collected via primary and secondary methods to provide a board brand and US market view. Primary An interview was conducted with a local store manager to gain an understanding of Accessorize’s core values and objec/ves. Insight was gained on their consumers and brand a@ributes, enabling a be@er understanding of the product ranges and providing valuable informa/on when looking at a poten/al range for spring/summer 2012. Secondary Secondary informa/on was such as websites, reports and magazine ar/cles were used to compile informa/on on the American lifestyle which was used to determine a successful launch process, adver/sing campaign, ranges and loca/ons.

1:1 INTRODUCTION

This report contains Accessorize brand iden/ty, objec/ves and informa/on on the US and UK retail markets to create a successful proposi/on of Accessorize moving into the US.

Accessorize is an English brand inspired by far away

places and ethical considera/ons. We are dedicated in

producing fine, affordable accessory pieces from bags

to necklaces. With ethical handcrabs and its bohemian

roots playing a part in Accessorizes design concepts

we create products that not only make you look good,

but make you feel good, crea/ng a long las/ng

consumer brand rela/onship.

2:1

Monsoon, Accessorize’s Parent company, was founded in 1973 by Peter Simon following his trip in India where he discovered an array of printed clothing which he sold on Portobello road. Monsoon’s first store was located in Knightsbridge, London and in 1984 Accessorize was born as a new, dis/nc/ve accessory store concept in keeping with Monsoon’s original focus of ethnic products from faraway places. The store was situated in convent Garden adjoining to Monsoons store. Previously, Monsoon had been selling a small collec/on of Accessorize pieces which is what ini/ated the concept, however, aber seeing how successfully the pieces had sold it became clear that this was the route to follow. Aber successfully opening two Accessorize stores in London in 1992 a store was opened in Manchester and an airport store in Gatwick South Terminal. Aber such a quick take to the high street Accessorize devised a store-‐opening program averaging 16 stores per year. Aber 27 years of successful brand expansion Accessorize now holds more than 240 stores na/onwide and an interna/onal opera/on of over 600 stores.

2:2 History

Bohemian Ethnic Fresh Diverse Ethical

Accessorize reflects scenes and arts of faraway places, it

is inspired by current events and produces products to

inspire the consumer and give back to the creator.

Accessorize’s contribu/on goes beyond its products; we

believe in valuing the people and places that make us

who we are. By Accessorize living through these beliefs

we are able to produce contemporary pieces that

embody our current outlook through our ar/san’s eyes.

2:3 Attributes

Since 1994 we have been helping to improve lives of women and children at a disadvantage in Asia through the Monsoon Accessorize Trust.

With our core objec/ves of puhng people first and giving back what we take we felt that by going a step further and star/ng a Trust we could put this into ac/on whilst gehng others involved.

The program is focused on helping to provide educa/on, health and income genera/on. Since its launch we have worked on many projects across Asia improving the livelihoods of communi/es.

Current projects in India and Afghanistan include providing health care to remote villages, help women make a living from their tradi/onal embroidery crab as well as helping co@on farmers

transfer to organic methods of farming.

The Trust is something we can publicize interna/onally when expanding. We can make a point of it in-‐store and online once set up in a new country. With current global ethical concerns we are keen to not only get future customers involved but apply a posi/ve outlook on Accessorize as a new

brand.

Monsoon and Accessorize Trust

2:4

Our Vision is to con/nually produce accessory products that cater to all

our consumer types whilst expanding globally. We want to ensure we

con/nue to provide help globally and give back to those that inspire us.

Our objec/ves are to push our 600 worldwide store opera/on and to

tackle the US market. We will be able to understand many different

social and cultural types through the US thereby providing us with

useful informa/on for our other global stores. We will be adap/ng and

enhancing certain products to ensure we are perceived in a posi/ve

way for certain markets.

Vision & Objectives

2:5

Ethical Since 1973 we have supported ethical design and handmade goods from overseas. We have encouraged the

ar/sans and adapted their pieces that inspire our design team to produce contemporary, cultural products.

Bohemian Accessorize began with a bohemian style of design and has since evolved to produce a wide array of ranges

however the separate design areas never forget their bohemian image roots.

A@en/on to detail On most products you will find an imprinted A for Accessorize that marks their products or a tag with care guides.

With every different range you will also find the packaging and presenta/on of the piece fihng to the product,

this separates the ranges and makes it easier for the consumer when in-‐store or online.

Product Attributes

3:1

We currently produce women’s accessories and an Angel range for children aged between

4-‐12 which are both separated under product type:

Bags

Jewellery

Footwear

Beach

Accessories

Gibs

However, within store and occasionally online we concentrate on splihng these products

between their design story therefore making it easier for the consumer to find matching

products resul/ng in increased sales.

Range Segmentation

3:2

High level of Styles & Ranges

High in Price

Low in Price

Low level of Styles & Ranges

*Fiorelli

*Aldo

*Claire’s Accessories

*Pandora

*Tie rank

*Mikey *Pilgrim

*Calvin Klein

*Signet group

*New Look *Topshop

*Accessorize

Perceptual Map Main Contenders in the Accessory Market

Accessorize as a brand is currently strong due to its role as market leader in

the accessory market. Through 27 years of experience it has developed

valuable brand recogni/on and customer loyalty.

Accessorize is currently viewed in the market as producing an extensive

range of products at the same price as compe/tors but of superior quality.

It is valued for providing consumers with on trend, fashionable pieces that

speak for themselves. Through its product ranges consumers put faith in

accessorize to provide them with products for every occasion and need.

Consumers turn to accessorize for good quality retail experience especially

in the mother and daughter market. Through Accessorize’s ethical values

consumers gain sa/sfac/on and a posi/ve brand ahtude through

purchasing products that none of our compe/tors offer.

Brand Positioning 3:3

Poli%cal A poli/cally stable government sets a secure base for Accessorize to launch into the US. It provides Accessorize with confidence that no dras/c changes will be made that may jeopardize the company. With the US not prepared to sign a treaty to stop global warming Americans may look to new ways of helping, such as eco friendly purchases. Accessorize could capitalize on this and con/nually push their charity and ethical products, producing a posi/ve brand persona. Economical With employment on the rise within the US this will have a posi/ve outcome on Accessorize’s launch as poten/ally there will be an increase in consumers with disposable income. Accessorize’s launch will also help the economy by opening up more job posi/ons, again adding to a posi/ve brand image. With disposable income on the rise sta/s/cally this will again give a greater opportunity to capitalize on. The US dollar on the rise presents a good opportunity to move into the market whilst set up costs will be lower with a higher future return.

US PEST Analysis Overview

4:1

(See Appendix 1 for US PEST)

Social With the ageing demographic in America the retail market is moving toward change as most target the younger consumer. Accessorize have a diverse range of products to suit all ages and therefore will poten/ally do well. Accessorize will need to research US customer service to create a tailored employee training program with the high service level that is expected in the US. We will also need to get a good understanding of American English language to ensure poten/al consumers are not confused or offended. With celebrity culture being so prominent in America it would be worthwhile for Accessorize to find a posi/ve celebrity figure as its face to launch into the US. Technological The US is one of the fastest growing technology bases with unlimited marke/ng techniques. Sta/s/cs show high rates of Americans using social networking sites and owning smartphones it would be valuable for Accessorize to tap into these and use technology to promote themselves as they already do in the UK. With the US consumer engaging more and more in e-‐commerce it would be wise for Accessorize to con/nue having its e-‐store online as it does in the UK to make maximum advantage of sales and promo/ons.

Over the past 12 months consumers have slowly regained faith in the economy and we are witnessing a rise in retail

sales once more. Though there was a dip in the market in years 2007/2008 since then there has been a slow and steady

increase in sales.

Due to the recession consumers have increased awareness of only spending on required necessi/es in order to save

money. As a result consumers are less prepared to invest into the luxury goods retail area and therefore turning to

‘value’ pieces that are seen in the likes of Primark and discount retail stores.

Though consumers are theore/cally saving money by turning to fast retail they are also buying more products in

keeping with the fast turn around in fashion trends. With so much variety in choice of brand, price and value

consumers are now engrossed in this fast-‐fashion cycle resul/ng in buying a larger amount of products which has

ul/mately led the retail market out of the recession.

UK Consumer Behaviours

4:2

(See Appendix 2 for UK Retail Market)

High-‐end retailers have also survived well throughout the economic crisis. Consumers,

unprepared to pay the price of high end luxury goods, are turning to products that are

good value ini/ally and thereaber in lifespan, crea/ng a fundamental market for

consumers at the higher end of the high street.

Women are the highest contributors to the value of the fashion retail market with

women’s clothing sales making up to 51.4%. This is principally due to their unlimited

amount of choice, however surveys have shown the men’s retail share is on the rise as

they are faced with more adver/sing and social and cultural pressure.

Over the past five years there has been a fast rise in e-‐retail, in 2010 e-‐retail grew by

17.6% to hit £58.6 billion. Retailers are producing websites that offer a browse and buy

op/on as well as providing consumers with the most recent Brand informa/on. Though

this type of retailing is easy and convenient for consumers resul/ng in higher e-‐tail sales it

decreases poten/al impulse buys oben seen in store, with 55% of internet users now

browsing online before they buy.

However Consumers have noted that they are more likely to go in store to purchase

aber browsing online. Though this enables the consumer to find exactly what they

are looking for it can push certain stores out of the market.

Consumer sales have also seen a correla/on with weather and holidays. Because of

the bad weather seen at the run up to Christmas there was a dip in sales in store to

previous years and seen more online, which oben offered cheaper versions of

products. Yet March’s 2011 quarter proved higher retail sales figures than expected

with a small part of this believed to be in connec/on with the be@er weather.

Though consumers have stated they would like to see more ethical fashion and

would shop in more environmentally friendly stores, they are not prepared to pay

the increasing costs that occur with these products. Therefore, unless a cheaper

way of sustainable fashion is produced consumers we con/nuously turn to non-‐

sustainable fast-‐retail.

(See Appendix 3, further Consumer sta/s/cs and Informa/on)

The US retail market has fluctuated predominantly mirroring the economic climate. However it would appear that

people are returning to the luxury goods market and accessory market since the global recession. Within these areas

however, it is believed that luxury goods and jewellery is a financial investment, and these types of sales are

dependent on the current economy.

With American living costs on the rise in a difficult economic /me the US retailers are s/ll struggling financially. With

gas prices on the rise households are finding that they have less disposable income thereby reducing spending on

unnecessary retail products. Though American consumers were notorious for spending more than they earned the

economic breakdown has shown considerable cut backs in all areas.

US Consumer Behaviours

4:3

US consumers have noted that they now oben look for cheaper alterna/ves of products and a survey has shown that

almost half of the American consumers have shopped in discount stores. Another survey has noted that with consumers

aware of retail prices and their comparisons they are more likely to shop in crowded stores as they perceive them as

offering lower cost products and greater variety en/ces consumers to buy more.

Though consumer spending is on the rise a vast amount of this is due to the rising costs of food and gas leaving less

disposable income to be spent in other retail markets. However a recent survey from The Conference Board revealed that

70.4% of US consumers are feeling more posi/ve and confident in the market and spending, though they are s/ll

unprepared to make huge investments in Housing. This is clearly reflected with the Housing market s/ll considerably

down in comparison to before the recession.

Although America was hit hard by the economic recession, the US consumer quickly adapted and in 2009 the retail

market saw the first growth of consumer spending. Since we have seen a con/nuous rise yearly, and with the first 2011

quarter shows that spending is up by 7.8% in comparison to last year. This cer/fies consumers growing confidence in the

economy with the US spending more on clothing once more.

It is the younger consumer who has financially kept the retail market afloat, with most having more disposable incomes

than older shoppers and are more conscious of current trends. Though the market for ‘fast fashion’ has grown

considerably in the US with the likes of Forever 21 the demand for ‘affordable luxury’ has also seen an increase, with the

older genera/on not quite prepared to pay the full amount for higher-‐end items but s/ll have the need for luxury pieces.

Consumers have also shibed to spending more within malls and brand chains than exclusive stores, with growing trust in

certain brands and price having an impact.

Weather and holidays have had an affect on sales in store, with more consumers turning to the Internet to make retail

purchases. The US consumer was noted to have done a large amount of Christmas shopping online in order to miss the

masses take to the high streets and not brace the freezing temperatures.

US online retail has been on a steady rise for the last few years reaching a 12% increase rate to last year, a@aining $38

billion in sales during Q1 2011. With the US consumer engaging more and more in e-‐commerce it would be wise for

Accessorize to con/nue having its e-‐store online as it does in the UK to make maximum advantage of sales and

promo/ons. This has also been affected through the likes of social media a@rac/ng poten/al consumers to e-‐tail sights

with 74% of US web users having an account with a social network.

The UK have become obsessed with fast-‐fashion with the younger genera/on now reported to be spending

more due to the vast amounts of brands, prices and styles available on the market. Fast fashion has also been

seen in America however sales are not as high in comparison to England. However in the US, consumers are

much more focused on finding discounts and comparing prices online. When launching into the US it maybe

worth Accessorize looking into offering a limited promo/on to en/ce the US consumer.

Both countries have rising e-‐sales because of availability and lifestyle factors. Now a large percentage of their

sales are done online taking away from store sales. The US and UK also correlate in their spending habits over

holidays and weather. Both were reported to have much higher sales over the Christmas period and Valen/nes

day, etc. They have also witnessed a rise on online sales due to weather. This is something that Accessorize can

capitalize on and make sure they promote themselves over these /mes. This will help their UK stores as well as

their future US store.

The UK however seem to have more consumers with disposable income in comparison to the US because of

their rising living costs. This has a nega/ve effect on the US retail market which may affect Accessorizes US

launch.

Comparison of the US & UK Behaviors

4:4

The United States is a diverse country ethnically and racially. There are six main races recognized throughout the US; White, Black or

African Americans, American Indian, Asian, Na/ve Hawaiian and other Pacific Islander, and people with two or more races. Americans

can also be classed as La/no or Hispanic.

Within the UK we are seeing more cultures and ethnic groups taking residence. The UK is now one of the fastest growing mixed-‐race

popula/ons in the world. It is predicted that by 2051 ethnic minority numbers will rise to 20% of UK habitants. Though the UK is

slowly gaining more ethnic groups and cultures it is not to the degree of the US and therefore Accessorize will have do research in

Americas ethnic cultural socie/es. However from working with different countries from its trust and where its roots originally lie

Accessorize will already have some understanding in cultural differences which will be valuable for their launch into the US.

US popula%on 2011 UK popula%on 2011

312,913,872 62,008,048

US and UK Culture Comparisons

4:5

Americans travel a lot less in comparison to the Bri/sh. Because of their diverse states they are much more likely

to holiday inside the US. However with Britain being a lot smaller and have li@le good weather, UK habitants are

more likely to travel to the rest of Europe. Each state of America has different cultures and tradi/ons unlike the

UK. This will help word of Accessorize launch into the US spread through America with many US ci/zens travelling

to California (Accessorizes chosen state to launch).

Though the US and UK both speak English, certain words and phrases are perceived in completely different ways.

The US language is called American English and spoken by 82% of the popula/on; Spanish is the second most

common language and makes up 12% of the US languages. The English sa/re is not quite understood in the US

and is perceived as rude. The US are also a lot more openly friendly and informal, the majority are quite happy to

approach a stranger to spark a conversa/on where as the English are known to be much more reserved. This is

par/cularly seen in differences between customer services. The US have a much more ‘full-‐on’ approach, with

constant eagerness to help and service interac/on whilst within the UK assistant’s are more likely to stand back

and let the consumer come to them. This would be something Accessorize would have to take into considera/on

when looking at marke/ng campaigns and assistant training.

The US uses more technology in comparison to the UK. They move a lot faster in understanding and adap/ng to new

technology on the market crea/ng bigger media opportuni/es and market sales. The UK tends to be a lot more

tradi/onal in technology and take longer to adapt to new technological products. Accessorize will have to grasp

American technology understanding and find ways to join the market, to make full advantage and launch itself as a

new innovate brand that is fashionable and up to date.

Over the past decade looks and appearance are becoming more of a topical issue around the world, with catwalk

models spor/ng size zero and the rise of obesity it is no wonder that fitness is becoming a priority. The Uk has

witnessed a rise in the health and fitness industry for the 10th consecu/ve year in 2010 to a net worth of £3.8 billion

according to FIA. Whilst the US fitness industry has maintained a steady rise, with memberships growing and profits

remaining solid. This provides Accessorize with sound news that their health & wellbeing range will con/nue to be a

consumer necessity and that poten/ally expanding this range to accommodate more sport required op/ons.

US Competitor Set The US does not have many specific Accessory brands like Accessorize, most of Accessorizes compe/tor brands are mainly clothing

brands. The brands that do just cater in the Accessory market are also priced higher than Accessorize crea/ng a valuable posi/on

for Accessorize to target other consumers. However from the perceptual map you can see that there are other brands (Claire's

Accessories, Victoria's Secret, Forever 21) pricing their products lower or on par to Accessorize. With Accessorize being a new

brand the US consumer may choose to purchase products at these stores though they offer a lower choice of products and ranges.

Roxy and Billabong have been included within this perceptual map as they are very strong swimwear and fitness contenders

within the US therefore crea/ng a poten/al problem for Accessorize. However with Accessorizes evening and day range

Accessorize should be able to en/ce customers into store through other means. In addi/on these two brands only cater for a

younger age group crea/ng an advantage for Accessorize as we cater for all ages.

With almost half of consumers in the US looking for cheaper op/ons to products we feel that the likes of Kate Spade, Fossil and

Guess Accessories will not take away from poten/al sales.

Overall, this perceptual map shows that there is a market for a sole accessory store in the middle market within the US. Careful

adver/sing and a clear posi/oning statement will inform consumers of what we offer, our values and objec/ves.

5:1

High level of Products & Ranges

Low level of Products & Ranges

High in Price

Low in Price

*Kate Spade *Aldo

*Claire's Accessories

*Forever 21

*Guess Accessories

*Coach

*Roxy *Billabong

*Hot Topic

*Club Monaco

*Victoria's secret *Fossil

*Accessorize

Perceptual Map Main

Contenders in the Accessory

Market

Product strengths Accessorizes has a unique assortment of collec/ons from everyday to Bou/que. All produced with crea/ve design, print and crab that reflect the brand diversity. With products produced to en/ce all age groups it offers a mother and child shopping experience. Accessorize has always played a part in ethical considera/ons and has set up a trust to give back to Asian communi/es, all contribu/ng to posi/ve brand image. Accessorize is known to produce high quality goods that is affordable to everyone Accessorize is one of the few brands to con/nue to use tradi/onal methods in producing their products by using crabsmanship and producing results that a machine can not produce.

Product weakness Accessorize is limited to women and children currently. It only a@racts this market due to its feminine styles. Not all products are online, therefore poten/ally losing sales. Accessorize currently outsources some of its manufacturing in India and Asia therefore higher distribu/on costs may occur when expanding across America. Consumers in the US may not be used to such a diverse product categories within stores and be loyal to the US compe/tors. Accessorize may struggle in understanding the US culture with working rela/onships and US appealing VM that sells the products. Jewellery and luxury goods are affected by the economy; there is less room for spontaneous expenditure when consumers are under financial strain. Market is very seasonal resul/ng in fluctua/ng sales

SWOT analysis entering into US

5:2

Market opportuni%es The US does not currently have an ethical accessory specialist brand on the high street and therefore can promote itself with this in mind. Accessorize caters for many age groups and therefore can blossom to almost everyone in all areas of America Accessorize has the opportunity to cater for the older genera/on that is currently being dismissed and is known to be on the rise and as that is known to be growing with aging demographics as accessories can be worn at nay age and with its diverse collec/on there are pieces to suit all.

Market threats The US consumer are tradi/onal in their values and might not appreciate a UK brand taking place in the US The US consumer may prefer Accessorizes compe//on for their clear product price and consumer age. Certain areas in America are es/mated to have higher business costs and therefore Accessorize may see a slower return from higher establishing costs.

strengths Has a clearly defined consumer age and product type. Offers an eclec/c mix of accessories and jewellery targeted to the lifestyles of kids, tweens, and teens. Was founded in the US and therefore understands the US consumer needs. Has already successfully expanded globally and therefore understands the financial and cultural differences. Weaknesses

Only caters for a specific age group. Is very specific in the type of products they produce, enabling to only cater for a small majority of their target age group. Has not created or invested in crea/ve marke/ng campaigns and gained posi/ve brand presence. May not suit all areas of America, with ageing demographics Claire’s Accessories wont be suitable in all towns and ci/es. With Claire’s catering to a young audience most sales rely on coming from guardians. Therefore most likely depending on spendable income. Can’t currently see all their products online or purchase them without going in store.

Competitor SWOT analysis Claire’s Accessories

5:3

Opportuni%es Can con/nuously grow within the States as it is already has an established brand. Expand the brand name into other fields to poten/ally create a mother daughter experience, as guardians are already most likely to enter the stores for the child. Look into new adver/sing opportuni/es to maintain rela/onship with consumers.

Threats New entrants. Their targeted age group change their opinions on products, move away from the girly styles. (Lack of customer loyalty) The con/nuous growth of e-‐retail is pushing Claire’s Accessories out of the market at they do not operate in online sales. Playful jewellery and accessories are not necessi/es and therefore with the economy downturn they maybe effected financially with lower sales figures.

Consumer segmentation Our consumer is fashion forward, image aware and ethically conscious. She has a fun and playful ahtude towards

clothing and picks items for their unique quality. She values family and friends and is interested in other cultures. She enjoys art and design through her crea/ve quali/es and stands strong in sociable situa/ons.

Who Women and mature teenagers from 16+ with varied sizes and children between the ages of 4-‐12.

What Our consumer shops in Accessorize for everyday and evening accessories.

Why Our consumer is aware of trends and looks and likes to stay looking ‘up-‐to-‐date’ whilst also having staple pieces that

will carry them through each season. When

Women and mature teenagers use the accessories in day and evening in most weather condi/ons depending on style and range (i.e. bou/que for evening).

Where Accessorize products can be worn anywhere due to our varied selec/on.

Day-‐ work, weekend, family and social day events, shopping Night-‐ bars, par/es, evening ou/ngs, smart events

Fitness & wellbeing – beach, pool, gym, water sports, holidays Kids-‐ school, weekends, par/es, social events, on holiday

5 W’s

We will produce more fitness and sport orientated products for the fashion

fitness consumer known to be seen in parts of California and across

America. We will also con/nuously strive to make ethical decisions and

produce high quality pieces at a good value. Our product ranges will uphold

the diverse collec/on types we have now to maximize sales from all

consumer types and age groups.

Market entry strategy

6:1

California is situated on the West Coast of the United States and is the third largest state. It is home to 37,253,956 residents which makes up 11.91% of Americas popula/on. It is home to many famous landmarks and beaches a@rac/ng many tourists from within and outside the US. With LA and Orange County being on the coast of the Pacific, making them perfect seaside resorts, with not only a large popula/on but again an a@rac/ve tourist des/na/on. LA also benefits from many different retail areas and socie/es enabling Accessorize to a@ract and be seen by many. California is a very appealing state to launch Accessorize with its high resident and tourist rate crea/ng a greater poten/al revenue. There is a variety of cultural differences within California crea/ng a greater opportunity to understand other cultures helping Accessorize launch into other countries. The US has a rising obesity rate, however in California 24.8% are classified as obese, This is a small percentage rate compared to other states. Though Accessorize will be producing a size larger than they currently do to suit the US market it s/ll means that our current sizes are s/ll required and wanted by our consumer.

California

6:2

Accessorize will con/nue to cater for women and children of all ages. We will maintain a diverse collec/on of accessories as well as puhng more energy into growing our fitness and wellbeing sector of accessorize. Design concept By looking at poten/al 2012 women's trends we are able to have an idea on what we feel will work for Accessorize women's range in 2012 when we launch into America. Taking into considera/on Accessorizes ethical values and bohemian roots when considering design ideas we have produced five poten/al ranges; Stars & Stripes, Eastern Odyssey, Majes/c Florals, Natural Earth and Exo/c Brights. Sizing From Sta/s/cs of women's sizes and different body shapes in the US compared to the UK, We have decided it would be best to introduce US size 16, size 20 in the UK and X large. This will par/cularly help our bikini sales as bust sizes within the US have risen from 34B to 36C over the past 15 years. Overall it will enable and help Accessorize open itself to addi/onal poten/al customers. Product Type Gym memberships growing and profits remaining solid in the fitness industry show that expanding into a fitness range would also open Accessorize to a new market. Accessorize already caters for the health and wellbeing customer but by producing a spor/er range opens them to a new customer and poten/ally higher sales. And with California's loca/on by the sea creates a large amount of water ac/vi/es that require more robust swimming costumes and accessories than Accessorize currently produces. Personalizing to the US Accessorize will also be producing a personalized collec/on for the US market to show their willingness and a@ract the loyal US brand consumer.

Seasonal range plan

Section 7

Size Ranges

Price Ranges

Materials

Everyday Leisure & Wellbeing

US 2 – 16 Small-‐ X Large

$5-‐$20

Premium Leisure & Wellbeing

US 2 – 16 Small-‐ X Large

$20-‐$55

Sport & Fitness

Small-‐ X Large

$10-‐$50

Eveningwear US 2 – 16

$55-‐$100

Jewellery and other Accessories

Clothing

Swimwear

-‐Plas/c -‐Wood

-‐Elastane -‐Viscose

-‐Elastane -‐Nylon

-‐Silver plated -‐Glass -‐Leather -‐wood -‐plas/c

-‐Polyester -‐Viscose -‐Co@on


-‐Lycra -‐Plas/c


-‐Polyester

-‐Lycra -‐Elastane -‐Nylon

-‐Silver -‐Special stones -‐Leather -‐Wood -‐Glass

-‐Polyester -‐Viscose -‐Co@on

We have chosen to launch ourselves into Los Angeles, California. The first store will open at The Grove. A widely known outdoor shopping mall that holds a variety of stores from designer labels to high street. The Grove has been chosen for its appealing tourist consumer as well as LA residents. It is also situated closely to the beach which will drive our health and well-‐being swimwear. LA has also been reported to be highly image conscious and fitness, with many gyms and health & wellness centers located across the state being an ideal place for Accessorize to sell their products. LA also has a pres/gious party scene with many clubs and bars being located through the town. They range from up market cocktail bars to understated eateries. By gehng customers into the store through either our jewellery and accessories or health and wellbeing sec/ons there will always be a product for another occasion. The Grove will become our flagship store as it has high retail possibili/es and a@racts masses. Our first store will be larger than the UK accessorize average store as the first US store will stock all products and ranges. The store will be a way of selling the brand with a bright, exci/ng, innova/ve look. The store will con/nue to split products by their design story and range. Accessorize will also introduce more technology into the store in keeping with other American stores. Throughout the store i-‐pads will be placed showing Accessorizes history through visuals and current campaigns. Within the Kids sec/on there will be an interac/ve sec/on where the child’s profile will be visual on screen using augmented reality they will be able to see themselves wearing the products that they select e.g. /ara, necklace etc.

The Store

Location

8:2

8:1

Through research of US consumer behaviors and understanding how widely used technology is

in adver/sing we have proposed to look into adver/sing in four different ways. This will enable

poten/al Accessorize consumers to know that a store will be opening as well as the new range

campaign. By promo/ng this it will ul/mately drive customers into store.

Magazines

Through the likes of US Elle, US Vogue, US Glamour and Preven/on Magazine we will target our

fashion focused consumer through our current campaigns.

Billboards

Billboards enable us to reach out to all types of our consumer. They will be placed in main

stripes to ensure people see them. This will hopefully drive more consumers to our store who

perhaps do not currently know of Accessorize.

Advertising Channels

8:3

Online

Social media is one of the fastest ways of marke/ng and therefore through the

likes of twi@er and Facebook Accessorize can market itself and offer exclusive

offers and promo/ons. They can also promote new ranges and push their growing

fitness & wellbeing range to suit the US market.

QR codes

Codes will be placed on all their adver/sing channels containing launch

informa/on and current campaign. A pop up Laser QR code will also appear across

LA throughout the run up week of the launch that contains news and exclusive

promo/ons.

Throughout the run up to the launch and within the first month of opening

Accessorize we will have some exclusive offers and promo/ons to help allure

customers. With almost half of US consumers shopping in discount stores this

would poten/ally en/ce this type of customer, it would also create a posi/ve

brand image for Accessorize therefore encouraging people to return.

The Campaign

Looking at current US fashion brands and consumer behaviourism US

consumers are a@racted by celebrity endorsement. We want to

produce a campaign that will ini/ally draw the consumer in to show off

our products. From looking at current US fashion ar/cles and who has a

posi/ve high iconic figure in the media currently we felt that Blake

Lively would be an ideal candidate.

She is currently on trend, and stars in a hit US TV program. With her

sophis/ca/on she is also appealing to all genera/ons.

The idea behind the campaign is ‘Step Inside’ referring to our new store

in California. The Campaign will provide the consumer knowledge of our

stores whereabouts and what it has to offer.

8:4

Through Market Research I have been able to a@ain a sound body of informa/on that Accessorize will be able

to adapt and a@ract the US market. With rising consumer confidence and the rising retail economy Accessorize

would be able to a@ract consumers in store and online. Accessorize is currently one of the leading accessory

stores within the UK and with the US having very similar compe//on Accessorize is capable of tapping into a

market area that is not yet fully established.

I would recommend that Accessorize does launch into America star/ng in California due to demographics and

follow this by spreading to other states once having a clear understanding of the US market and established its

flagship store at the Grove.

Summary and Recommendations

8:5

Appendix 1. PEST analysis US market Poli/cal The United States has enjoyed 135 years of poli/cal stability since the end of the Civil War. It is the oldest democra/c republic and is the only country to achieve this so successfully. However, Americas government and culture is con/nually moving with the /mes, this was par/cularly noted when U.S. Decisively Elects its first Black President; Barack Obama. With the recession came government spending cuts. The government is predicted to hit a Deficit of $1.65 trillion this year and are now finding ways in which to deal with such a huge budget shoryall. However Obama has noted that he will not make cuts that will effect the economy or stop America climbing out of the recession. This may however have a long standing effect on the growth of America in the future with lack of funds to expand and improve. Global warming is an ever growing concern throughout the world, with rising greenhouse gasses countries are trying to put a treaty into ac/on in order to save the world. However the US have opposed the treaty as they feel it will jeopardize their economy and feel its unfair that China and India do not have emission reduc/on targets. Global warming is s/ll on the rise and is therefore con/nually becoming a problem. However Accessorize can con/nue to push their ethics and chari/es within America to promote and help. Economical Unemployment within America is slowly decreasing. However there has been a small rise between April and May from 8.8% to 9.0%. The average unemployment rate was at 5.70% since 1948 un/l 2010 in the US, however in 1982 it hit a record high of 10.80% due to the economic crisis, and we have since seen the effects. However since the recession in 2006/07 we have seen a rise in unemployment as the aber effects of the downturn. However, we have seen a par/cular employment rise in the service-‐providing industries, manufacturing and mining. Within the retail trade we saw a +57,000 jobs open up.

According to the Bureau of Economic Analysis in March Personal income increased by 0.5% to $67.0 billion, whilst disposable personal income increased by 0.6% to $64.4 billion. Though disposable income is on the rise debt is also. With living costs increasing there is more strain put upon disposable income for luxury goods, meaning living costs are taking away from the retail market. The US dollar is used globally for many interna/onal financial transac/ons. Over the past five years the dollar has had an uneasy sta/s/c rate with the constant change in strength. The dollar however appears to be rising in strength once more as it is currently up by 13.5% to last year. Social There has been a sudden rise in ageing demographics in the US. It is es/mated that in 2030 the number of people over 65 will peak to 71.5 million. The US are not quite ready for this change however future plans are already being discussed for example such things like larger street signage, accessible housing, age appropriate fitness programs, as well as lifelong learning and job re-‐training opportuni/es will all need to be considered. This will ul/mately change the retail market with most targe/ng a younger age group. Within the US service industry employees work more for gratuity as they are paid a low wage, therefore crea/ng more emphasis on good consumer rela/onships. Throughout the economic downturn the fitness industry has maintained a steady rise, with memberships growing and profits remaining solid. Health and fitness clubs and gyms have been predicted to con/nue to expand with more people becoming body conscious. Though the US speaks the same language to the UK there are certain phrases and words that are slightly different. This is something to be aware of when launching into the US to ensure the brand does not offend or confuse poten/al consumers. The US have produced many famous stars and con/nue to do so. They have towns dedicated to the famous and therefore Americans have become obsessed with the ‘celebrity’. Within the US as well as the world we are con/nually seeing collabora/ons with celebri/es and celebrity endorsement. This could be a way in which Accessorize launches itself with a celebrity as a promo/ons figure as we have done so in the past. Technology Social Media has become a huge influence on the US market. With 74% of US web users have an account with a social network and facebook predicts that 132.5 million US web users will have joined the network by the end of 2011. This means that social media is an ideal loca/on to target your consumer and find out what the consumer wants.

85% of the Americans now own cell phones and 90% of households have at least one at home. Cell Phones are becoming more and more advanced, with 1 in 4 Americans owning a smart phone where they can access the internet. Because of this marketers have created ways in which they can adver/se and target consumers directly through their phones. The world of QR codes and apps are expanding making it ever more interes/ng to get involved. This could be a great way to target the American consumer about Accessorizes launch. US online retail has been on a steady rise for the last few years, especially peaking around public holidays. According to comScore online sales reached $38 billion during Q1 2011 this is a 12% growth rate to last year. With the US consumer engaging more and more in e-‐commerce it would be wise for Accessorize to con/nue having its e-‐store online as it does in the UK to make maximum advantage of sales and promo/ons.

2. UK Current Market Aber the Recession and Economic downturn the retail industry shows signs of growth and recovery as consumers gain confidence within the market. Overall the cost of clothing and accessories is on the rise due to the VAT increase to 20% from 17.5%, however this has been put into place to help the UK economy face its debts. There is also a shortage of co@on due to previous years (farming, natural causes) resul/ng in rising material costs. These current problems will increase sale prices, poten/ally nega/vely affec/ng retail sales. The UK has become obsessed with ‘Fast Retail’. With the quick turn over in trends, fashion retail stores are answering to the consumer needs by producing low-‐cost clothing. This has led to lower-‐priced high street stores increasing their shares of the clothing market. However, since the economic downturn we have seen consumers priori/ze their shopping habits, resul/ng in a slower growth of clothing sales. In spite of this we have seen a rise in the accessory market.

3. UK Consumer Informa/on and Sta/s/cs childrens Children’s retail share value increased by 6.7% in 2010 to 19% proving that households are paying more for necessi/es as we see women’s retail share decrease. In answer to household consumers buying more children’s wear we have witnessed more retailers crea/ng specific children’s lines and collec/ons. Therefore expanding the choice of retailers and variety in collec/ons for consumers. Clothing Accessories Over the past five years we have seen sales increase by 34.2% in the accessory market, taking the accessory market to 5.6% of the clothing market in 2010. Since the recession there has been a constant consumer trend of inves/ng in accessory pieces rather than garments to achieve the acquired new fashion trend. The accessory market has been the fastest growing clothing market and is now considered just as important. To the consumer it is an inexpensive way to update looks and make style statements. The accessory market has been a huge contributor in helping boost the industry out of the recession, and with accessories being adver/sed and promoted as much as garments it is no wonder consumers have began to recognize this accessory trend.

fashion jewellery Fashion jewellery has become a popular consumer purchase for oneself when following fashion trends, again rever/ng to the ‘fast fashion’ phenomenon, with the speed of clothing collec/ons enhancing the turn around rate in jewellery. Fashion jewellery is rising fast in the jewellery market and now holds a 9.2% share aber a 4.9% rise in 2010. Fashion jewellery has been welcomed by the consumer as an alterna/ve to real jewellery and with the growing choice of products consumers are turning to these pieces in an effort to save money. It would appear that the younger consumer is most likely to buy jewellery, especially fashion jewellery, data has also shown that as age increases there is a less chance of the consumer to purchase jewellery (may have obtained enough jewellery and doesn’t care to keep up with such trends).

Books Ar/cles Clifford, Stephanie. April 7, 2011. Stuff Piled in the Aisle? It’s There to Get You to Spend More. The New York Times Indiviglio, Daniel. Feb 15, 2011. U.S Retail Sales Hit Another High in January. The Atlan/c Reuters. March 28, 2011. U.S Spending Rose 0.7% in February. The New York Times The Associated Press. Feb 22, 2011. Consumer Confidence Rises To the Highest in 3 Years. The New York Times Websites

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Pages 1.  google.com/images/Accessorize 2.  google.com/images/Accessorize 5. google.com/images/Accessorize 7.  google.com/images/Accessorize 8.  Own Image-‐ taken September 2009 13. Own Image-‐ taken September 2009 14.  google.com/images/Accessorize 17. Accessorize.co.uk 22. google.com/images/Accessorize 24.  google.com/images/Accessorize 25. google.com/images/Accessorize 31.  google.com/images/Accessorize 35. google.com/images/Accessorize 43.  Mood Board-‐ google.com/images 45. google.com/images/Accessorize 46.  google.com/images/Accessorize 52. google.com/images/The Grove 53.  Own Image-‐ taken April 2011, google.com/images/Accessorize 57.  Marie Claire

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