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C A R I S S A A R I E S T A
Fashion Merchandising
Merchandising Strategy for Stylenanda
by Carissa Ariesta and Natasha Tjandradinata
Click here for Assortment Planning
Click here for Sales Projection
Click here for 6-Months Planning
Click here for Costing
BRIEF INTRODUCTION
PURPOSE: plan to open a physical store of the brand in the local market and to provide a profitable projection that will ensure the brand's survival.
BRAND ANALYSIS
BRAND ANALYSIS
Stylenanda has grown a lot since they first began into a comprehensive lifestyle brand, to the extent that they can bring their chic and eccentric concept into their own physical stores.
Their target customers are college girls and young women that appreciate Korean style, around the age of 17 - 28 years old. Their preferred customers would need to be financially independent to be able to afford the products.
Stylenanda Tops (Main Merchandise)
PRICING
PRICING
SINGLES
Shirred Asymmetrical Lace Insert Gigot Sleeve Frill Tiered Floral
Tube Dress Cane Dress Trim Dress Lace Dress
$49.00 $99.00 $109.00 $199.00
Price Line : $49.00 - $199.00 SGD
TOPS
Crossed Self-Tie Striped Extended V-Neck Frill Asymmetrical Lace-Up
Strap Detail Camisole Sleeve T-Shirt Accent Crinkled Detail Sweatshirt
$19.00 $29.00 $99.00 $189.00
Price Line : $19.00 - $189.00 SGD
BOTTOMS
Elasticized Faded Pre-Damaged Paneled Cut Out Flap Detail
Floral Print Shorts Denim Shorts Fringe Hem Jeans Loose Fit Pants
$29.00 $39.00 $89.00 $119.00
Price Line : $29.00 - $119.00 SGD
OUTERWEAR
Loose Knit Ethnic Pattern Oversized Bomber Deep V-Neck Long Open Front Cardigan Cropped Cardigan Jacket Line Cardigan
$39.00 $59.00 $209.00 $419.00
Price Line : $39.00 - $419.00 SGD
LOCATION
Stylenanda's Flagship Store, 'Pink Hotel' Concept
Myeongdong, Korea
Chosen location In Singapore : 313 Somerset due to the high traffic and target market who would most likely go to the city area during weekend or leisure time, causing the store to be projected to open a store in the urban area.
Anchor 1
ASSORTMENT PLANNING
ASSORTMENT PLANNING
1. MAJOR CLASSIFICATION OF MERCHANDISE: CATEGORY
TOPS 40% People tend to buy more tops
BOTTOMS 20% People tend to buy less bottoms
SINGLES 25% More fashion-forward merchandise
OUTERWEAR 15% Singapore warm climate - less outerwear
2. Sub-classification : Selection factor 1 - SUBCATEGORY
3. Sub-classification : Selection factor 2 - MATERIAL (knit / woven)
4. Sub-classification : Selection factor 3 - DESIGN for more options
5. Sub-classification : Selection factor 4 - COLOUR
As Stylenanda is a more fashion-forward brand, they have more designs compared to colour, which is considered a wide but shallow assortment.
6. Sub-classification : Selection factor 5 - SIZE
Stylenanda only carries one size per item, and again showing wide but shallow assortment.
Overall Assortment Tree
Tops Assortment Tree
Bottoms Assortment Tree
Outerwear Assortment Tree
SALES PROJECTION
Anchor 2
SALES PROJECTION
Average Price:
TOPS : $59.00
BOTTOMS : $79.00
SINGLES : $89.00
OUTERWEAR : $99.00
Price Range :
TOPS : $39.00 - $179.00
BOTTOMS : $49.00 - $109.00
SINGLES : $59.00 - $199.00
OUTERWEAR : $59.00 - $399.00
The market segmentation of the brand is mid-mid.
Retail sales calendar is divided into 3 categories: low month, average month and high month
A low month is a period before sale, which reduces items sold as people will wait for the sale. A high month is on sale period, where people buy more items due to the price drop.
ONE DAY SALES ON AVERAGE MONTH:
12 pieces sold a day - It has a good and strategical location
5 TOPS = 5 X $59 = $295
4 BOTTOMS = 4 X $79 = $316
2 SINGLES = 2 X $89 = $178
1 OUTERWEAR = 1 X $99 = $99
TOTAL = 12 = $888
5 DAYS (WEEKDAYS) = 5 X $888 = $4,440
1 DAY (WEEKEND) = 30 % HIGHER SALES due to higher traffic
= 1.3 x $888
= $1,154.40
2 WEEKEND DAYS = $1,154.40 X 2
= $ 2,308.80
1 WEEK SALES = $4,440 + $2,308.80
= $6,748.80
1 MONTH SALES = 4 X $6,748.80
= $26,995.20
= $27,000
ON HIGH MONTHS =
40% HIGHER DUE TO HIGHER DEMAND
= 1.4 X $27,000
= $37,800
= $38,000
ON LOW MONTHS =
20% LOWER DUE TO LOWER DEMAND
= 0.8 X $27,000
= $21,600
= $22,000
+
1 YEAR SALES PROJECTION
1 YEAR SALES PROJECTION
OPERATIONAL EXPENSES
OPERATIONAL EXPENSES
STAFF COST
STAFFS = $560/month ($7/hour, 5 days) x 2
= $1,120/month (x12 month)
= $13,440/year
FULL TIME STAFF at $1,300/month
= $1,300/month (x13 month)
= $16,900/year
BRAND SUPERVISOR at $2,000/month
= $2,000/month (x13 month)
= $26,000/year
BRAND MANAGER at $2,500/month
= $2,500/month (x13 month)
= $32,500/year
TOTAL = $88,840 + CPF percentage (17%)
= $103,942.80/YEAR
+
EXPENSES
VISUAL MERCHANDISING
The window display is predicted to change around 6 times in a year.
Changes include : Chinese New year, Spring/Summer collection, Fall/Winter collection, Christmas and when new stocks arrive.
TRAVELLING COST
Travel budget is needed for brand manager to go to Korea for taking new stocks and Paris to watch fashion shows.
REDUCTION
Being a new brand, we plan to keep the reduction to a minimum, at a rate of 2% of sales per year.
PROFIT
Planned profit is 5% of the sales per year. As it is a new brand, we plan to have a reasonable amount of profit, keeping it not too low but higher than rental yield.
EXPENSES
INITIAL MARKUP
INITIAL MARKUP
6 MONTHS PLANNING
Anchor 3
The table below shows 6 months planning from February to July.
Stock turnover = 6 times / year
= 3 times / 6 months
Sales projected from February - July = $185,000
Average stock = sales
stock turnover
$185,000
3
= $61,666.67
= $61,667 (rounded up)
Average monthly = 6 months sales
6
$185,000
6
= $30,833.33
= $30,833 (rounded up)
Basic stock = average stock - average monthly
= $61,667 - $30,833
= $30,833.67
= $30,834 (rounded up)
IMU based on sales projection = 75.5%
Cost = Retail - IMU
= 100% - 75.5%
= 24.5%
6 MONTHS PLANNING
Anchor 4
COSTING
COSTING
Down below are two examples of calculated costing sheets. Sheet 1 covers side-tie partial wrap dress while the second covers frilled trim portrait collar blouse.
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