rag & bone
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Founded in 2002, rag & bone had one very clear vision in mind: to make clothes that they and their friends would love to wear every day. With no formal fashion training, Marcus Wainwright & David Neville set about learning how to make jeans. They believed that denim represented the history, authenticity and fundamentals of classic work wear that they would strive to reflect in their designs.
•rag & bone launched their men's line in Spring 2004 •Expanded the label to offer a full women's collection by Fall 2005•The Fall Winter 2007 season marked the introduction of rag & bone accessories for both men and women•Won the 2007 Swarovski Award for emerging talent in menswear•In 2010, David Neville and Marcus Wainwright were named Menswear Designers of the Year by the CFDA.
Guided by a strong British tailoring influence, we produce classic yet modern sportswear for men and women that is known for being understated and wearable. Each piece, whether it be a tailored shirt or a pair of jeans, is framed by the constants of high quality fabric, classic construction and perfect fit with a handmade feel.
We operate 11 stores worldwide, four of which are in New York City. Flagship stores are also located in Washington D.C., Boston, Dallas, London, Los Angeles, Seoul, and Tokyo. rag & bone is also available in high-end boutiques and exclusive department stores in over 39 countries worldwide. rag & bone operates an e-commerce store at www.rag-bone.com
Expansion strategy: “Focused approach”, brand oriented, opportunistic.
•We fight for premier retail space! (ex: Houston Project, Fillmore Street SF)
•Every move is thoughtful, they enter areas where their target market likes to shop, and where they can expand to new markets
•Irving Place Capital (ICP) announces a minority stake in rag & bone= growth!
AUSTRALIA •Similar to the U.S •National language: English•Commercial Scale Culture•Developed Infrastructure•Religious & apparel freedom-freedom to express•Predominately Christian•Melbourne, Fashion capital of AU•Enjoy art, sports, fashion, social activities•Low Context Culture•Sophisticated buying behavior
•Responsive and growing Market
ENTRY STRATEGY: We will enter the Australian market as a wholly owned
subsidiary, and operate as a global business.
This way,they will be able to have more control,and stay true
to their to their brand image, and product!
A con of opening a wholly owned subsidiary is that it can be expensive for a company, however, with the help of our
new investors, we plan to overcome that struggle.
Our brand prides themselves on their British heritage, and New York style. This will appeal to
the Australian market, because they are similar to the American
The Austrian Dollar in comparison to the US dollar is a little higher. One US dollar is .93743 to the
Australia's population is about 20.1 million with 80 percent of Australia’s population being European ancestry with the other 20 being Asian heritage. Nearly three
quarters of Australians live in the metropolitan cities and coastal areas.42% of the population are between the ages of 25-54 with the median age being 37 years old.
Australia has much in common with Great Britain and the US.
The top 4 largest and most populated cities in Australia are1.) Sydney
2.) Melbourne3.) Brisbane4.) Perth
The Westfield Sydney: Is a mix of top Australian and international designersOxford Street: a street filled with Fashion boutiques, home ware, cafes and restaurantsCollins Street in Melbourne: Home of some of the worlds most luxurious brands.
Current major retailers are Gap, Abercrombie & Fitch, Apple, Zara, Fossil and Costco. Coles-Myer is the largest retail store in Australia.
RETAILING DOWN UNDER
•Australian retail is currently on the rise. With a 29 percent growth in online retail sales since the end of 2012, and an 40 percent rise with international sales. •Retailing in Australia is still about connecting with customers •Behind in technological advances, social media, etc. •Increasing dominance of multiformant retailers
•Australian retail sales figures have continued their upwards trajectory in January 2014, according to the Australian Bureau of Statistics (ABS).
•Australian retail turnover rose 6.2 per cent in January 2014, compared to January 2013.Total retail sales for January 2014 were $22.9 billion.
•The result comes off the back of 5.7 per cent year on year growth in December.
•Month on month growth – January 2014 versus December 2013 – rose 1.2 per cent.
A growing market:
Online retailing on the rise:
online sales growing at around 26% over the past 12 months while traditional retail sales grew at just 1.7%
Still more than 90% of all retail sales are through bricks and mortar stores, majority of shoppers still prefer the brick and mortar experience
Rag and Bone currently operates a U.S online store. They offer free shipping. They do ship to Australia, but there is a $30 shipping fee. We want to open an online store for Australia, because Australians are shopping online, and would be more likely to shop Rag and Bone if they had free shipping. Technology is on the rise, and more Australians are interested in omni channel retail.
Ownership Advantages- Lifestyle brand with the downtown New York appeal, strong brand identity. Superior knowledge of retail innovations
Location Advantages- Free trade agreement with the U.S
Internationalization Advantages- Australia has a similar culture and lifestyle. Rag and bone will benefit from their expanding into their diverse and accepting market.
• Retail space is limited: rag & bone negotiates for prime retail space
• Reverse Seasonality: Our product is diverse (denim), we will offer some exclusive merchandise for the au consumer (similar to Tokyo strategy)
• Higher Conversion rate: It is standard for prices to be higher in AU to make up for tariff fees/import/export fees (Free trade policy)
•Respond quickly to retail innovations
•In Store Experience
Keys to Success
Why this expansion will succeed:•One of the worlds strongest economies•Growing population•Large disposable income for fashion goods•Similar Culture to the U.S•Premier retail location, Melbourne Australia’s fashion capital•Art is an important part of Australia and part of what differentiates our company •Strong brand identity appeals to Australians market •Strong retail sales- upwards trajectory•Competitive advantage in omnichannel retailing •Women spend 945 million dollars annually on fashion
RAG & BONE
Located in the premier shopping district of Australia’s Fashion Capital, Melbourne755 Collins Street
RAG & BONE
Collins Street, Melbourne
Rag and Bone will open its flagship store on Collins Street, Melbourne
Collins street is known for its designer stores in heritage buildings, five-star hotels, private clubs and exclusive jewelers
Considered the top end of town
RAG & BONE ADVOCATES
We will advertise our launch in Australia through popular Australian fashion Bloggers.A great example is Tuula Vintage
We want to use Australian celebrities in our ads Miranda Kerr has worked with us before, so it’s only natural to
continue to work with her! Using Australian icons will create more support from our new Australian
marketWe do not want to stray from our current marketing style. We just want to
incorporate Australian models, celebrities, and appeal to the Australian market even more
ON BEHALF OF RAG & BONE, THANK YOU