De Kliek Style Studio
Opportunity
Problem & Solution
Problem Worth Solving
Women professionals with fashion-forward needs have disposable income with no idea what works best for their bodies. There are also a significant portion of professional women who work crazy hours and have countless events and no time to shop for themselves. Women are judged on appearance so the money they raise or their job advancement is dependent on their clothes and their style choices. They have to look good to get ahead and are not sure what to buy or how to deal with their own style.
Our Solution
De Kliek Style Studio is an upscale women’s clothing boutique that intends to open in Noe Valley in July. De Kliek means "clique or circle of friends" in Dutch; this defines the boutique and its essence of inclusion. De Kliek carries beautiful designer labels for professional women, such as the sophisticated silhouettes of Herr Frau and luxurious Jamin Puech handbags. De Kliek’s clothing selections and exclusive personal style services, which include a detailed Style Assessment that features nine different style personalities, will ensure that our customers are always well dressed.
Target Market
Market Size & Segments
(Note: the information here is not valid for re-use. Dates and details are incorrect. This is here for illustrative purposes only, as part of a sample business plan intended to be used as an example only.)
There are various economic forces that affect apparel retailers. Consumer confidence is the most important; people don’t shop when they are not feeling good. Unemployment also has an effect, in that fewer women out in the workforce means less disposable income for high-end quality clothing. Thus, the large discounters (Target, Sears and Wal*Mart) are now working with top designers to bring designer apparel to the masses. Although they can’t compete on quality, their continued development of the trend could have a direct impact on retailers who sell designer clothing during tough economic times.
Fortunately, the luxury goods market, of which De Kliek is a part due to the high-end brands it will carry, has remained recession-proof, as clearly indicated by the successful 2016 results for Coach, Tiffany and Saks. According to Women’s Wear Daily, luxury firms forecast a strong 2017, particularly for accessories and footwear. However, the strong Euro and slowdown in wealth creation are big concerns and managing a balanced quality-price ratio is the key to success for luxury retailers.
"Fashion is a requirement for those who are high in their success." -Luxury Consumer
In the luxury market, luxury consumers (defined as "affluents" who have household incomes of over $100K) spent more in 2016 than 2015. [1] Based on focus groups, United Marketing believes luxury consumers see apparel and accessories as more of a necessity than a luxury. This is good news to boutique retailers. There are over 800 clothing boutiques in the LA Area; approximately 19 percent of these generate over $500K in sales.[2] In fact, women’s clothing stores in Los Angeles have a 62% higher sales growth rate than the national average; this can be attributed to the fact that the average household in Los Angeles is considered affluent.
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1) For illustration purposes only. Original source omitted.
2) For illustration purposes only. Original source omitted.
Market Segmentation
Market Needs
If you were to overhear women talking in a dressing room, you would more than likely hear them comment on something they’ve tried on and question how they should wear it or what it will go with in their closet. Research has shown that women are stressed, have little time to shop, and would generally like help in determining the right clothes and styles to wear. With over 61 million U.S. women between the ages of 25-54 spending over $34 billion in apparel each year, there are sure to be some mistakes made in clothing choices. Television shows such as BBC’s "What Not to Wear" and Style’s "Fashion Emergency" clearly speak to a woman’s confusion about what looks best on her. Even women who can afford a professional stylist feel helpless and often jokingly request that their stylist come to their home every morning to help them get dressed.
"Within a decade, the companies that do the best job of marketing to women will dominate every significant product and service category." -Faith Popcorn
One gender in particular influences the majority of the retail marketplace: women. Women comprise 51% (145 million) of the U.S. population [1] and control or influence 81% of all household purchase decisions. [2] Women are now earning more college and master’s degrees than men, which translates into more senior positions & higher pay. [3] Overall, women represent 47% of the total U.S. civilian workforce and as that continues to grow, demands for their time also increase. Balancing work and family are the #1 concerns for women and almost half "hardly ever" take care of their personal needs; one out of five women would like to have time to do a little shopping! [4]
Target Market Segment Strategy
Los Angeles is rated amongst the top U.S. markets in economic and educational achievements. At an average age of 40, the Los Angeles professional is highly affluent, with an average family household income of $180,903 and a median home value of $622,170. Close to 50% have a bachelor’s degree and 40% of these professionals hold a postgraduate degree.
De Kliek customers will learn about the boutique through the following sources:
- LA Neighborhood Storefront
- Friends & Customers (word of mouth and email)
- Personal shoppers and stylists
- Women’s Fashion Magazines articles and reviews such as W, Lucky, Marie Claire and Vogue
- Local press mentions & ads
- Travel and shopping books and websites
The Primary Customer
The primary De Kliek customer is a professional woman with a household income over $100K. Her demographics are:
Her main characteristics are listed below:
Demographics
- Professional woman (ages 30-55)
- Household income over $100,00
- College-educated
- Lives in a higher-income LA neighborhood
Psychographics
- Looks for bargains (seasonal fashion) but willing to spend money on quality, core items
- Would like more time or help in understanding what clothing is right for her
- She wants to look her best because she wants to feel good about herself as well as make a good impression at her job
Leisure Activities
- Listens to NPR
- Supports the Arts
- Reads Vogue, New Yorker, Bon Apetit, Lucky
- Watches Bravo, BBC, HBO
- Internet savvy
- Travels, owns a passport
- She enjoys eating out as well as taking time for herself at the spa or getting a mani-pedi
Clothes Shopping Behaviors
- Spends over $2,500 for clothes each year
- Shops at Boutiques, Nordstroms, and Banana Republic
- Wears a size 6, 8, or 10
- Buys mostly tops and pants
- Looks for classic, basic items each season, with 1-2 trendy items
- She cares about how she presents herself, enjoys fashion, and looks for quality over quantity
Sources:
Sources:
[1] For illustration purposes only. Original source omitted.
[2] For illustration purposes only. Original source omitted.
[3] For illustration purposes only. Original source omitted.
[4] For illustration purposes only. Original source omitted.
[5] For illustration purposes only. Original source omitted.
[6] For illustration purposes only. Original source omitted.
[7] For illustration purposes only. Original source omitted.
Competition
Current Alternatives
Direct Competition:
- Fish
- Fred Segal
- Girl and Her Dog
- Margaret O’Leary
- Dress
- Rabat
- Riki
- Susan of Burlingame
- The Grocery Store
Indirect Competition:
- Abigail Morgan
- Ambiance
- eLuxury.com
- Her
- The Designer’s Club
- Yoya Boutique
- All other LA Boutique Retailers
Main Competition:
From a "look & feel" perspective, as well as consideration of designer lines that De Kliek will carry, Dish in Hayes Valley is considered the main competition. The following is a comparative analysis of Fish and De Kliek:
Location:
Open Mon-Sat 11-6, Sun 12-5
Plenty of places in Los Angeles cater to the well-heeled, but this area also reaches out to the adventurously heeled — and dressed.
Products:
Fish’s collections largely come from American designers such as Nanette Lepore, Lauren Moffat, Vince and Katayone Adeli
Customer Service
The owner of Fish is fashionable and knowledgeable. She is considerate of her customers and allows them the space to shop on their own (a very important aspect for women!)
Features and Atmosphere
Sleek and modern interior with a warehouse feel. There are three dressing rooms with linen curtains that pull a bit from the walls so privacy is not 100% guaranteed.
Our Advantages
Although De Kliek will bring high-quality clothing and value to Los Angeles women, the most significant competitive advantage De Kliek will have over all competitors is dedication to providing an approachable retail atmosphere with top-notch customer service. De Kliek’s unique selling proposition is the integrated concept of personal style services: from events and bios that educate shoppers on designers, to personalized Style Assessments, on-site alterations, and our own unique Style Concierges and wardrobe accessories. In contrast to many other boutiques, De Kliek will become a corporate member of the Association of Image Consultants so that our Style Concierges learn from the nation’s best on image consulting.
Keys to Success
Keys to Success
- Style. We have to be out in front, known and respected.
- Having a good location in a high-shopping area
- Quality product and good relationships with vendors
- Outstanding customer service
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